How much does it cost to use an Employer of Record (EOR) in Georgia?
- Gegidze • გეგიძე | Marketing
- Jun 28
- 14 min read
Table of contents:
Introduction: You’re not paying for a service. You’re buying peace of mind.
Let’s get the obvious question out of the way.
How much does it cost to use an Employer of Record in Georgia?
Spoiler: less than opening your own company, screwing up payroll, getting audited, and hiring a lawyer named “Giorgi” to fix it all.
But we’ll get to the actual number in a minute.
Because here’s what no one tells you:
You’re not paying for an “EOR service.”
You’re paying for not being the one who has to explain to Georgian tax authorities why your contractor is working full-time on your product roadmap.
Wait, what are you actually paying for?
An employment model that keeps your hands clean and your talent happy.
A system that handles contracts, payroll, compliance, and benefits without turning your startup into a Georgian bureaucracy case study.
And yes, it comes with a price tag.
But you know what’s more expensive?
Rejected work permits
Backdated taxes
Misclassification lawsuits
Your best developer walking because their bank froze your last transfer for “suspicious contractor activity”
Here’s the deal
This article isn’t just going to give you a random monthly cost with an asterisk that says “depends on scope.”
We’re breaking it down:
What’s in the fee
What’s not
What you get in return (besides less anxiety and more sleep)
And why using an EOR in Georgia might be the most startup-friendly decision you’ve made since moving off Notion for task management
Strap in. We’re about to make payroll sexy.
Or at least understandable.
What’s included in the EOR fee in Georgia?
Let’s be clear: an Employer of Record (EOR) isn’t just sending payroll on your behalf.
If that’s all it took, you could hire a part-time bookkeeper and wire a bank transfer.
But that’s not what you’re buying. And that’s not what’s at stake.
You're paying to legally employ someone in a foreign country without opening a company, learning the tax code, or risking a single misstep that leads to a misclassification audit.
The real value of an EOR lies in what’s bundled into that one monthly fee in Team Up’s case, starting at €199 per employee/month in Georgia.
And compared to the cost of doing it yourself (or doing it wrong), it’s a bargain.
Let’s break down what you actually get.
Full legal employment no entity required
Georgia’s labor law is clear: if someone works for you full-time, takes direction from your team, and uses your tools, they are your employees.
But if you don’t have a Georgian legal entity, you legally can’t employ them.
That’s where the EOR steps in. Team Up becomes the local employer on paper, taking on all legal and regulatory responsibilities while you still manage the day-to-day work. This keeps your hire compliant with labor laws, protects your IP, and keeps you off the government’s radar.
Market insight:
Most EOR providers in Georgia (like Deel and Remote) offer this at global flat rates (~$599+ per month). Team Up’s €199 fee is local-first, purpose-built for scaling teams, not bloated pricing.
Legally binding, bilingual employment contracts
Every contract issued by an EOR must comply with Georgia’s Labour Code, which governs:
Minimum notice periods
Termination rights
Salary and bonus structures
Taxation rules
Dispute resolution
Team Up provides bilingual contracts (Georgian + English), reviewed by local counsel, and customized for each role.
They also cover:
IP ownership (so you own the work product)
Confidentiality (so your roadmap stays private)
Non-compete/termination clauses that actually hold up in court
Without this? Your IP might legally belong to the employee — not you.
Payroll processing, tax filing, and salary disbursement
The EOR doesn’t just pay your employee. They act as the full payroll engine handling:
Salary calculations (gross → net)
Pension contributions (2%–4% mandatory)
Income tax withholding (20% flat tax)
Monthly declarations to the Georgia Revenue Service
Payslip generation
Bank disbursements in GEL
And yes, they do all of this in full compliance with Georgia’s rapidly digitizing tax infrastructure.
Compare that to setting it up yourself:
Monthly filings on RS.ge
Penalty risks for delays or underreporting
Confusing pension classifications (especially for hybrid roles)
Benefits administration & local perks
You can’t attract senior Georgian talent with salary alone.
Most high-quality candidates expect:
Private health insurance starting from € 49 per employee/ month
Gym membership starting from € 49 per employee/ month
Flexible PTO
Remote work stipends
Access to local coworking or team events
Team Up bundles local benefit access into the EOR experience, so your offer matches market standards without inflating your HR workload.
Currency exchange and payment routing
You pay in USD or EUR.
Your team gets paid in GEL.
But exchange rates, international wire fees, and mid-transfer deductions? That’s a nightmare you shouldn’t have to think about.
EOR fees include:
Currency exchange optimization
Payment routing to avoid mid-bank deductions
Real-time FX management to protect your payroll schedule
That means no more explaining to your developer why they received 200 GEL less this month.
Ongoing compliance, audits, and HR reporting
Remote hiring in Georgia isn’t “set it and forget it.”
The Revenue Service (RS) regularly updates filing standards.
Labor inspectors conduct spot audits.
Statutory changes can impact benefits and taxes.
Your EOR monitors all of this, and acts on your behalf when the law changes. That includes:
Filing updated tax reports
Adjusting contracts for new labor rules
Responding to official inquiries
You’re shielded from compliance risk without having to track local legislation or hire an in-house expert.
So what are you really paying for?
Here’s the real breakdown of that €199/month:
What’s Included | Handled by Team Up |
Legal employment without an entity | ✅ |
Georgian employment contracts | ✅ |
Payroll + tax filing | ✅ |
Immigration sponsorship (if needed) | ✅ |
Local benefits and perks | ✅ |
FX and payroll routing | ✅ |
Compliance and audit readiness | ✅ |
EOR fee structure, flat rate vs percentage of salary
Let’s address the awkward question most EOR providers avoid:
Why do some charge €199 a month, and others want 15% of your employee’s salary?
Because not all EORs price their services the same way.
And unfortunately, a lot of companies don’t realize how much they’re paying, or what they’re paying for, until that first suspiciously large invoice shows up.
If you’ve ever thought, “Isn’t this just payroll?”, no judgment.
But we’re here to explain how this pricing really works, and why Team Up’s flat-rate model makes a lot more sense (especially if you plan to hire in Georgia or across the Caucasus).
Two models, two very different outcomes
Here’s how most global EOR pricing shakes out:
Percentage-based pricing
This is the most common model among big-name platforms (yes, them).
You pay a fee that’s a percentage of the employee’s gross salary — usually between 8% and 15%.
Let’s break that down:
Salary (Gross) | EOR Fee @ 10% | Total Monthly Cost |
€2,000 | €200 | €2,200 |
€4,000 | €400 | €4,400 |
€6,000 | €600 | €6,600 |
See the problem?
As your roles get more senior, your costs balloon.
You're not getting more service, you're just paying more because your employee is more experienced.
That’s not efficiency. That’s… well, markup.
Flat-rate pricing (what we do)
At Team Up, we charge €199 per person/month, no matter their role, seniority, or salary.
You could hire a junior QA engineer or a senior backend architect.
Same price. No surprises.
This gives you:
Predictable monthly budgeting
Transparent cost structure
No incentive to underpay high-skill talent just to save on EOR fees
A clear ROI (especially if you’re hiring multiple roles)
It’s also how we’ve helped companies like HP and Natix save up to 66% on hiring costs in Georgia, Armenia, and beyond without compromising on compliance or quality.
Why the flat fee wins for scale
Hiring one person with a percentage-based EOR?
Maybe you can stomach the fee.
But when you're building a real team, the math starts to sting.
5 developers at €4,000/month each under a 12% EOR fee = €2,400/month in just EOR charges.
At Team Up’s flat rate? That’s €995 total.
That’s not a small difference. That’s a whole extra hire.
What’s included in the flat rate?
You’re probably thinking, “Okay, but what am I actually getting for €199?”
Here’s what we include (no fine print):
Legal employment & contracts under Georgian labor law
Full payroll processing and tax filings
Benefits administration (Paid time off; Sick leave; Public holidays; Paternity leave; Maternity leave)
Currency exchange and salary disbursement in GEL
HR compliance, audits, and local labor code updates
Salary + Taxes + EOR Fee = Total Monthly Cost
Let’s talk real numbers. Because while everyone loves to throw around terms like “cost-effective hiring,” what you actually care about is: how much will this cost me per month, per employee, all-in?
And you should. Because the difference between a €2,500 and a €3,200 monthly cost might not look huge on one hire, but multiply that across 5 developers over a year, and you're staring at a €42,000 decision.
So let’s break down what goes into the true monthly cost of hiring via Employer of Record (EOR) in Georgia, from gross salary to government deductions to what Team Up actually charges.
Step 1: Base salary, set by you (and the market)
In Georgia, the tech talent market is still competitive but affordable compared to Western Europe or the US.
Here’s what you can expect for common roles:
Role | Avg. Monthly Gross Salary (USD) |
Junior Frontend Developer | $1,000 – $1,300 |
Mid-Level Backend Dev | $1,800 – $2,200 |
Senior Full Stack Dev | $2,500 – $3,500 |
Product Manager | $2,000 – $2,800 |
QA Engineer | $1,500 – $2,000 |
These are gross monthly figures, what the employee earns before taxes.
If you're hiring through Team Up, you define the salary. We just make sure it’s paid correctly, taxed correctly, and contractually clean.
Step 2: Taxes & statutory contributions are non-negotiable
Georgia has one of the most employer-friendly tax systems in the region, but that doesn’t mean you can ignore it.
If you hire through an EOR, we handle all this for you. But here’s what we’re calculating behind the scenes:
Employee-side deductions (from gross salary):
20% flat income tax
2% pension contribution (optional for expats)
Employer-side obligations (included in EOR fee):
2% pension match
Social security and healthcare? Zero. Georgia doesn’t mandate employer-paid health insurance, but local talent often expects it as a benefit (see benefits section later).
So, if you're paying your developer $2,000 gross, here's the rough math:
Category | Amount (USD) |
Gross salary | $2,000 |
Employee tax (20%) | -$400 (deducted) |
Net salary received | $1,600 |
Employer pension (2%) | +$40 |
Total Cost So Far | $2,040 |
Note: Pension is mandatory for Georgian citizens under 40. Optional for older nationals and expats.
Step 3: EOR fee: Team Up’s transparent flat rate
Now tack on the Employer of Record fee.
With Team Up, that’s a flat €199/month per employee whether you're hiring a junior or senior.
Using today’s conservative exchange rate of €1 = $1.07, that comes out to $213/month.
So your total monthly cost to hire a $2,000/month developer through Team Up looks like:
Category | Cost (USD) |
Gross salary | $2,000 |
Employer-side pension | $40 |
EOR fee | $213 |
Total monthly cost | $2,253 |
That’s it.
No hidden fees.
No surprise government charges.
No currency loss due to poorly managed bank transfers.
What about higher salaries?
Let’s say you’re hiring a senior backend engineer at $3,500/month. Here’s how that math changes:
Category | Cost (USD) |
Gross salary | $3,500 |
Employer-side pension | $70 |
EOR fee | $213 |
Total monthly cost | $3,783 |
Now imagine you were working with a % fee-based EOR charging 10%.
That EOR fee alone would be $350 — $137 more per month, per hire.
Across a team of 5, that’s $8,220 per year in just fees.
Optional add-ons: benefits & workspace
Top talent expects more than just salary. Here’s what you can layer on, all managed by Team Up.
Benefits
Benefit | Cost (EUR) |
Health insurance | €49/month per employee |
Gym membership | €49/month per employee |
Training allowance | €49/month per employee |
So if you’re offering all three: that’s €147/month extra per person or about $157 USD.
Workspace (for hybrid or office teams)
Workspace Option | Cost (EUR) | Description |
Flex desk | €150 | Shared desk in a coworking space |
Dedicated desk | €250 | A personal desk — same spot, every day |
Private office | €1,250 | Full office space for small teams |
Most remote hires don’t need this, but for senior hires or hybrid teams in Tbilisi, it’s a strong perk.
Equipment
Option | Cost (EUR) |
Leasing | from €69/month per employee |
Buying | Tailored pricing |
IT setup support | Free |
No need to ship laptops across borders. We handle it locally, setup, support, and replacements included.
Real example: Mid-level Dev with benefits & gear
Let’s say you're hiring a mid-level backend developer in Georgia with:
$2,000 gross salary
EOR via Team Up (€199/month)
Health insurance, gym, training
Laptop lease (€69/month)
Your total monthly cost:
Salary + tax + pension = ~$2,040
EOR fee = ~$213
Benefits = ~$157
Equipment = ~$74
Grand total: ~$2,484/month, and you never opened an entity, filed a tax form, or Googled “how to register an employee in Georgia.”
Is EOR cheaper than setting up a company in Georgia?
Short answer?
Yes.
Long answer? Also yes, and now let’s show you the math so you don’t have to take our word for it.
Setting up a local entity in Georgia might sound like a “smart long-term investment.” And for some companies, it is, eventually.
But if your goal is to test the market, hire a few engineers, or avoid building a legal back office in Tbilisi? Then opening your own entity is the expensive, time-consuming way to do something EOR already solves.
Let’s break it down.
Entity setup costs (you pay these upfront)
Item | Estimated Cost (USD) |
Company registration | $300–$500 |
Local legal address | $100–$200/year |
Corporate bank account setup | $300–$600 |
Legal and translation fees | $400–$1,000 |
Accountant retainer (monthly) | $150–$300/month |
Payroll and tax filing software | $50–$100/month |
Total (first year) | $3,500–$6,000+ |
That’s before you hire anyone. Before you pay a single salary. Before your developer even starts onboarding.
Ongoing costs of maintaining an entity
Let’s say you get through the paperwork. Now you’re looking at:
Ongoing payroll management
Monthly tax filings with Georgia’s Revenue Service
Annual audits (yes, even for small firms)
HR, legal, and employment contract updates
This is no longer “just hiring.” It’s running a business in Georgia with all the red tape and responsibilities that come with it.
Now compare that to an Employer of Record.
With EOR, you skip all of that
Here’s what you don’t need:
A company registration
A Georgian accountant
A bank account in GEL
Local directors or representatives
Legal filings or labor code reviews
Instead, you pay €199/month per employee — and we do all of the above for you.
You get:
Legally hired employees
Monthly payroll and tax compliance
Local benefits
Equipment support
Visa sponsorship (if needed)
All in one monthly invoice. All are fully compliant.
So, when does it make sense to register an LLC in Georgia?
If you’re hiring 20+ people, setting up a physical office, and planning a long-term operation in Georgia, an entity might eventually pay off.
But if you’re hiring:
1–10 employees
Across multiple countries
Without plans for a physical presence
…then setting up an entity is like building a house just to rent one bedroom.
Common myths about EOR pricing
Let’s play a game: we’ll list the myth, and you try not to roll your eyes.
Myth # 1: “EORs are only for big enterprise teams.”
Myth # 2: “It’s cheaper to just hire a contractor.”
Myth # 3: “The EOR fee is just payroll with a fancy label.”
Myth # 4: “If I hire one person, I might as well open a company.”
Myth # 5: “Flat-rate pricing means hidden fees somewhere.”
These myths don’t just confuse founders, they cost them time, money, and talent.
So let’s crush each one with facts, not fluff.
Myth # 1: “EORs are only for big enterprise teams”
This one’s persistent, and wrong.
Yes, enterprise companies use EORs to simplify global headcount. But the real sweet spot?
Small and mid-sized teams that want to scale fast without legal baggage.
Hiring 1–5 people in Georgia?
Want to test a new market without opening a legal entity?
Need to spin up a dev team in under a week?
That’s exactly what EORs are made for.
Team Up built its €199/month pricing model specifically for lean teams, not just corporate behemoths with 14-layer approval chains.
Myth # 2: “I’ll just hire a contractor. It’s way cheaper.”
Until the Revenue Service decides they disagree.
If someone is working full-time on your team, using your tools, reporting to your managers, and following your hours, guess what?
They’re an employee. And misclassifying them as a contractor is not a clever workaround, it’s a legal risk.
The fine? Back taxes, penalties, and possibly even voided IP rights.
Team Up hires your people the right way, so you don’t spend the next year in back-and-forths with your lawyer and the Georgian labor inspector.
Myth # 3: “The EOR fee is just payroll outsourcing with a markup”
Nope. Not even close.
Payroll is just one part of what an EOR does. The EOR fee covers:
Legal employment contracts under Georgian labor law
Immigration support and visa sponsorship
Tax and pension contributions are filed monthly
IP protection clauses
Termination compliance
Equipment, workspace, and benefit setup
Audit-proof documentation
If you think that’s “just payroll,” try doing all of it yourself, then add the cost of your time, an accountant, a local lawyer, and 20+ hours of Googling.
Myth # 4: “If I’m paying €199 a month, I might as well set up an entity”
That would make sense, if setting up a legal entity only cost €199/month.
But it doesn’t.
Company registration, bank account setup, legal address, accountant retainer, payroll software, monthly tax filings, we’re talking thousands upfront, plus ongoing costs and time.
If you’re hiring fewer than 15 people?
That legal entity turns into an expensive hobby.
Myth # 5: “Flat-rate pricing sounds good, but there must be hidden fees”
We get it. Global HR has conditioned people to expect fine print.
But with Team Up, €199/month means exactly that.
We don’t charge extra for contracts.
We don’t take a % of your employee’s salary.
We don’t surprise you with “local compliance surcharges” halfway through onboarding.
We built our model to be predictable because if you’re hiring across borders, the last thing you need is a pricing structure that feels like a game of “gotcha.”
What could go wrong if you don’t pay for compliance?
Let’s say you skip the EOR. You “just hire a contractor.” You wire the money. Everything works fine until it doesn’t.
Maybe the developer wants a raise.
Maybe they ask for sick leave.
Maybe Georgia’s Revenue Service shows up with questions.
And suddenly you’re not running a product sprint, you’re explaining to a tax authority why your “freelancer” has been on your daily standups for 14 months.
Here’s what can (and often does) go wrong when companies skip the compliance checklist to “save money.”
Misclassification = fines, penalties, and back taxes
Hiring someone as a contractor when they’re legally an employee?
That’s misclassification. And it’s not just frowned upon, it’s fined upon.
In Georgia, the government doesn’t care what your contract says.
They care about how the working relationship actually functions.
If your hire:
Works full-time hours
Reports to your team
Uses your tools
Has a long-term commitment
Doesn’t work for other clients
…they’re an employee. No matter what the invoice says.
And if they're misclassified?
You could be on the hook for:
20% income tax (retroactively)
Pension contributions (2–4%)
Late payment penalties
Interest
Legal costs to untangle the mess
All of which is way more than Team Up’s €199/month EOR fee.
You might lose control over your IP
Without a valid employment contract governed by Georgian labor law, your intellectual property rights could get murky fast.
If your “contractor” builds a product feature and later disputes ownership, you could end up with a working product and no legal claim to it.
An EOR ensures that:
IP assignment clauses are airtight
Employment agreements are enforceable
You keep what your team builds always
Failed visa sponsorship (and interrupted work)
Trying to sponsor a work permit without a registered legal entity in Georgia?
Good luck.
Immigration officials don’t accept a “client of a foreign company” as a valid employer.
That means if your hire needs a visa to work in Georgia, and you’re not using a licensed local EOR, they don’t get the visa.
And if they’re already in-country? They might get flagged, or worse, deported.
With Team Up, we act as the local employer and sponsor the visa ourselves.
No skipped steps. No nasty surprises.
Broken trust in your team
Nobody likes being treated like a second-class hire.
If your developer is:
Paid late
Not registered with local tax authorities
Left out of company benefits
Operating in a legal gray zone
They’ll notice.
And they’ll leave, taking their code, product knowledge, and goodwill with them.
TL;DR: EOR cost in Georgia isn’t just affordable. It’s efficient.
Let’s recap. You’re hiring globally, not because it’s trendy, but because talent is everywhere, and Georgia just happens to be one of the smartest places to start.
And while everyone’s obsessing over “cost-per-hire,” the real question is:
Can you hire legally, quickly, and without drowning in admin?
With an EOR, the answer is yes.
Here’s what your monthly cost actually includes:
Competitive local salary (you choose it)
Fully compliant tax handling (we handle it)
Flat €199/month for legal employment, payroll, contracts, visa sponsorship, benefits, equipment, and ongoing HR compliance
All in, most clients spend 30–60% less than setting up a local entity or hiring through bloated global platforms.
So no, EOR isn’t just affordable.
It’s the model built for startups who want to move fast without breaking local labor laws.
And if you’re still comparing spreadsheets, and vendors, or hoping that your “contractor” doesn’t ask for a visa next quarter?
We should talk.
Book your free consultation
Let’s run the numbers for your team, and show you what hiring in Georgia should look like.