Employee benefits, insurance & workspace: What EORs provide in the Caucasus

Table of contents:

• Introduction

• What benefits are legally required in the Caucasus?

• Health insurance and extra perks in the Caucasus

• Workspace support for remote employees in the Caucasus

• Who provides equipment and tools?

• Why this matters for retention

• Final comparison: EOR vs building HR ops

• Conclusion

Introduction

Building a strong remote team across Georgia, Armenia, and Azerbaijan sounds great until you realize what that actually takes.

Three countries. Three legal systems. Three sets of expectations around benefits, insurance, and workspace. And unless you plan to build out an HR department with local expertise in each of them… good luck staying compliant, competitive, or sane.

That’s where a full-stack Employer of Record (EOR) model changes the game.

Instead of juggling legal setups and negotiating with landlords in three languages, you get one local partner who handles it all from mandatory labor benefits to workspace support, onboarding logistics, and more.

In this guide, we break down what a good EOR in the Caucasus really provides:

• What benefits are required by law in each country

• What local talent expects beyond the legal minimum

• How health insurance, equipment, and workspaces are actually delivered

Let’s get into it.

What benefits are legally required in the Caucasus?

The biggest compliance trap while hiring across Georgia, Armenia, and Azerbaijan? Underestimating mandatory benefits.

Let’s break it down country by country:

Benefits legally required in Georgia

Here is a breakdown of the legally required employee benefits in Georgia:

• Paid Annual Leave: Employees are entitled to at least 20 paid vacation days annually. Thanks to recent labor reforms, these entitlements now align more closely with EU standards.

• Public Holidays: You’re required to provide paid time off on all official public holidays. Georgia has quite a few, so plan your calendar accordingly.

• Pension Contributions: Both the employer and employee contribute to the national pension system. It's a flat percentage based on gross salary.

• Maternity Leave & Health Protection: Paid maternity leave is mandatory, with reimbursement handled via the state. Labor law also includes broader protections related to workplace health and safety.

Benefits legally required in Armenia

Here is a breakdown of the legally required employee benefits in Armenia:

• Paid Annual Leave: At least 20 working days of paid vacation per year. No shortcuts here; this is a hard minimum.

• Public Holidays: Paid leave on national holidays is required.

• Maternity Leave: Women are entitled to 140 days of paid maternity leave, split evenly before and after childbirth. Longer for complicated or multiple births.

• Paternity Leave: Fathers can take 5 paid days within the first month after birth.

• Social Fund Contributions: Employers must contribute to the state fund, which covers pensions, temporary disability, maternity benefits, and more.

• Minimum Wage: No skirting this, if you’re hiring through an EOR, expect salaries to meet or exceed the national minimum.

Benefits legally required in Azerbaijan

Here is a breakdown of the legally required employee benefits in Azerbaijan:

• Paid Annual Leave: The baseline here is 21 calendar days of paid vacation.

• Sick Leave: Employees are entitled to paid sick leave with a valid medical certificate.

• Pension Contributions: Mandatory contributions to the social insurance and pension system from both the employer and the employee.

• Employment Contracts: Formal contracts are required by law. That means written agreements with clear terms, not handshake deals or open-ended arrangements.

Health insurance and extra perks in the Caucasus

Nobody leaves a job just because the coffee sucks. But they do leave when the perks don’t match the pitch.

Here’s the thing: private health insurance isn’t mandatory in Georgia, Armenia, or Azerbaijan. But if you're hiring mid-level and senior professionals, especially in tech, finance, or sales, it’s expected. And skipping it makes your offer easy to ghost.

So what perks actually matter?

Across the region, we see a pretty consistent baseline of what remote professionals want:

• Private health coverage, especially plans that include family members and dental

• Internet and phone allowance – €30–€50 per month is standard

• Wellness stipend – gym, therapy, or even yoga on YouTube

• Learning budget – Udemy, Coursera, or local tech conferences

In some cases, companies also offer:

• Performance bonuses

• Flexible time off policies

• Coworking memberships (more on that later)

You don’t need to reinvent your global benefits policy every time you hire in a new country.

That’s the beauty of working with a solid EOR provider in Caucasus: we bake the perks right into the employment package, making sure they meet local expectations, align with your global equity, and stay compliant with labor laws.

Workspace support for remote employees in the Caucasus

You can’t expect productivity from a professional who’s working from a creaky kitchen chair with a toddler chewing on their power cable.

Workspace matters, especially when you’re building remote teams in Georgia, Armenia, or Azerbaijan.

So, where are these teams actually based?

Most EOR employees work from major hubs like Tbilisi, Yerevan, and Baku, with growing clusters in second cities, Kutaisi, Gyumri, Sumqayit, and beyond.

And while fully remote is the default, EOR talent still expects structure. That means:

• Home office stipends – to cover ergonomic chairs, desks, better lighting, or even blackout curtains for video calls

• Coworking memberships – access to local spaces like Impact Hub (Yerevan), Terminal (Tbilisi), or SUP.VC (Baku)

• Shared office desks – for hybrid teams working under a single manager or regional hub

What does this actually cost?

On average:

• Home office setup: $200–$500 one-time

• Coworking: $100–$150/month

• Stipends: $50–$100/month for utilities, snacks, cleaning, etc.

Team Up helps you keep it lean without looking cheap. We coordinate coworking contracts, process monthly reimbursements, and handle local invoices, so your ops team doesn’t drown in $30 receipts from five countries.

Who provides equipment and tools?

Hiring someone in Tbilisi without giving them a laptop is like asking them to code on a potato. Spoiler: it won’t end well.

What do most hires expect?

Here’s what’s typically needed to start strong:

• Laptop (MacBook or high-performance Windows, depending on role)

• Second monitor (especially for developers and designers)

• Licensed software (Figma, JetBrains, Adobe, MS Office, don’t make them pirate it)

• Accessories (headphones, mouse, keyboard, webcam, hub)

So… who handles it?

You do. But not alone.

Team Up’s EOR model means we handle the local logistics, while you stay in control of the budget and brand standards.

There are two options:

1. Reimbursement

You let your hire purchase what’s needed locally, then Team Up invoices you or includes it in your next payroll cycle. This is faster in regions where delivery is slow or customs are annoying.

2. Centralized Procurement

You ship from HQ or buy through a vendor you trust. Team Up can receive and deliver to the employee or work with local partners to match specs.

What about onboarding timelines?

• Reimbursement route: 1–5 days, depending on item availability

• Central procurement: 7–14 days, assuming customs doesn’t play games

• Software access: same day (Team Up helps onboard them into your stack)

Why this matters for retention

You can’t keep great people if you treat them like freelancers with a Slack login.

Let’s be blunt, engineers and specialists in Georgia, Armenia, and Azerbaijan are getting offers from Germany, the UAE, and the US. If your “remote offer” boils down to a salary and vibes, don’t expect them to stick around.

What actually makes people stay?

• A proper employment contract that gives them security

• Local benefits that match or exceed market standards

• A workspace that doesn’t feel like a punishment

• The tools they actually need to do their job

• Real perks, like learning budgets, wellness stipends, and paid holidays

Retention isn’t just about money; it’s about certainty and support.

What a competitive offer looks like in the Caucasus

Here’s what top candidates now expect, and what Team Up helps deliver:

Offer Element	What Candidates Expect	Delivered via Team Up EOR
Contract Type	Legal full-time hire	✔ Local + English contracts
Insurance	Private health (not basic)	✔ Optional packages included
Workspace	Coworking or stipend	✔ Stipend managed monthly
Equipment	MacBook or equivalent	✔ Procured or reimbursed
Extra Perks	Internet, wellness, learning	✔ Structured into payroll
Payroll	On time, in local currency	✔ Managed by local team

Why EOR-based retention works

Hiring through Team Up means your employees feel like they’re part of something real, not a side hustle with no safety net.

Our clients see lower churn, faster onboarding, and stronger loyalty because the employment package isn’t just “remote-friendly,” it’s actually employee-friendly.

Final comparison: EOR vs building HR ops

Let’s put it plainly, building HR infrastructure across three countries isn’t lean. It’s expensive, slow, and packed with legal potholes. That’s fine if you’re hiring 200 people and want to plant a flag. But for most growing teams, that’s overkill.

Here’s how it breaks down:

Category	Employer of Record (EOR)	Building In-House HR
Speed	Hire in days	3–6 months setup
Cost	Flat monthly fee	Company setup + admin + lawyers
Compliance	Fully managed	Your responsibility
Scalability	Add/remove hires anytime	Operational overhead
Local Expertise	Built-in	You’ll need local advisors

What does this mean for you?

• EOR = lean, fast, and safe.

• In-house HR = control, but heavy lift.

If you’re testing new markets, scaling headcount in the Caucasus, or don’t want to hire a full HR team just to onboard one developer in Baku, Team Up’s EOR model makes a lot more sense.

Conclusion

Good benefits don’t just make people feel appreciated; they make them stay. And in a region like the Caucasus, where high performers can easily work for Berlin, Dubai, or New York, your offer has to hit global standards without burning your team out on HR admin.

That’s what Team Up’s EOR model is built for.

We handle employment, compliance, workspace support, benefits, and equipment logistics, so you can focus on managing the actual work.

Want to see what your offer could look like?

 → Book a call to walk through our benefits, workspace, and onboarding setup for Georgia, Armenia, or Azerbaijan.