Why Georgia is the ideal place to hire. A brief overview of the labor market
According to the National Statistics Office, 978,500 Georgians were employed at the beginning of 2025, 433,500 individuals identified as self-employed, and almost 234,000 were seeking employment. The experts have placed the unemployment rate at 14.2%.
Higher than the 5% generally regarded as desirable for the economy, the indicator also hints at an opportunity where the typical search for qualified personnel takes just two weeks. To compare: The average search in the EU, where unemployment is 6.2%, takes two months.
To sweeten the pot, KPMG and Deloitte report that 56.5% of Georgians in the job market boast a higher education or professional certificate, 60% of young people are fluent in English, 70% speak Russian, 10% German, and according to EU4Youth data from five years ago, 13% keep a resume in English (a figure that is sure that have risen considerably since).
And to seal the deal, trained personnel are affordable. According to PMC Research, the average monthly salary in Georgia is GEL 2,000 (USD 720), several times lower than in the EU, the Middle East, and Asia. In Singapore and Hong Kong, often ranked among the top countries in terms of ease of doing business, you won’t find basic operating staff for less than USD 5,000, which is a salary only the cream of the crop could hope for in Georgia.
Add low business taxes, benefits galore (international IT-company, virtual zone, or PPE resident status, for example), openness to foreigners, and the simplicity with which a corporate bank account can be opened to the long list of advantages.
An important hitch in labor relations to be aware of
If you plan to hire staff in Georgia and aren’t looking for trouble with the revenue and labor services, you’ll need to delve into the legislation.
Add to the Labor Code the laws On Labor Safety, On Employment Promotion, On Elimination of Forms of Discrimination, and On the Protection of Personal Data. And this is not counting individual Government and Ministry of Labor decrees regulating everything from how to count working hours to maternity (and paternity) leave.
You’ll need a whole team of lawyers and a human resources department to cover every base when you finally get to drafting an employment agreement and internal regulatory documents – a bit of a challenge if you’ve just opened a company here (you don’t have to visit Georgia in person to do so) or you have a company elsewhere and are only thinking about entering the Georgian market.
The ideal solution – outsourcing HR
What it is and how it works
You can outsource all or part of the tasks typically handled by an HR department to a third-party contractor who understands the local market. The PB Services legal department handles just such affairs.
We guarantee the full legal compliance of all your labor relations with employees (residents and non-residents of Georgia) and related documentation so you can focus on what really matters – the growth of your business!
HR outsourcing services include:
- The complete recruitment cycle: from the search for candidates to drafting contracts. Whether searching for specialists or taking care of more general recruitment, we post openings in English, Georgian, and Russian to maximize coverage, tap insider channels, and use our expertise to determine the most competitive salary.
- HR administration: We manage vacations and dismissals, generate timesheets, issue all the necessary certificates, and file reports on non-residents with the labor migration portal.
- Experienced accountants calculate and pay wages, advances, and bonuses as well as vacation, travel, and sick pay.
Additional services can include auditing your HR work, taking care of employee health insurance, and creating internal policies and procedures for trade secrets, labor protection, and telecommuting, among others.
No company in Georgia? EOR can help
PB Services also offers an Employer of Record labor management model, serving as official employer for tax, insurance, and legal purposes and managing payroll, benefits, taxes, and compliance with local labor laws so you can focus on your core operations.
Having employees officially employed by a third-party company, but work for you optimizes tax burden and eliminates legal risks, making it possible to enter a new market without even having to open a legal entity and hire specialists abroad remotely.
How to hire staff remotely
- Leave a request on our website or sign up for a free consultation .
- A specialist will contact you to find out more about your business needs and prepare a customized proposal for you.
- Once the contract has been signed, we will assign you a personal manager for your HR team.
- Request the necessary information and documents to get started and begin searching for candidates.
The advantages of outsourcing HR with PB Services
- Reduced legal and tax risks. We understand the local market and Georgian law, updated annually
- Financial benefits. It costs more to maintain a whole staff of HR specialists than to outsource. In addition to reducing your payroll, you won’t have to pay for an office, equipment, or HR software
- Maximum flexibility. You can increase or decrease recruitment activity without changes to full-time staff, especially relevant for seasonal businesses (e.g., the tourism sector)
- The opportunity to engage in business development without being distracted by bureaucracy and administrative issues – get immediate access to top HR specialists requiring no supervision or training
Non-resident employees?
Citizens of almost 100 countries can enter Georgia without a visa, stay in the country for up to a year, and work without a permit. As a consequence, there are more than 200,000 foreign workers here already.
There’s a condition Georgian companies must satisfy to hire them: The company must have an annual income of 50,000 GEL (about USD 20,000) per non-resident employee, meaning with a reported income of USD 200,000, it can officially employ up to 10 foreign workers (eligible to apply for a residence permit through work).
One more thing: The company is obliged to report the fact to the Department of Migration when hiring or firing a foreign worker (if the employee is actually present in Georgia). If you employ staff remotely, the Ministry of Internal Affairs need not be notified, though you must report to the tax inspectorate in any case (for residents of Georgia too).
The Employer of Record model avoids these complications, after all it’s the third-party company that officially employs non-resident workers.
Taxes you will pay as an employer
- 20% income tax on the employee’s paycheck, remitted to the IRS every month
- 2% pension contributions for residents of Georgia (doesn’t apply to non-residents)
Georgia has a standard 40-hour work week, employees are given 24 vacation days each year (and 126 days of maternity leave for those eligible), and there are quite a few official holidays – we wrote about them in this article.
If you’d like to learn more about labor law or have questions about taxes, business registration, or remote accounting, drop us a line through the form below, and we’ll do our best to help you!