Employee benefits, insurance & workspace: What EORs provide in Georgia
- Gegidze • გეგიძე | Marketing
- Jul 15
- 10 min read
Table of contents:
Introduction
Hiring someone in Georgia is easy. Hiring them properlywith benefits, insurance, legal contracts, and a real workspace is where most companies cut corners, whether they mean to or not.
And in this region? Cutting corners comes at a cost.
If you’re expanding into Georgia and want to hire full-time employees without setting up a local entity, you’re probably looking at an Employer of Record (EOR) solution. Good call. But here’s the thing most companies miss:
An EOR isn’t just about paying salaries on time.
It’s about creating a real employment experience, one that feels stable, compliant, and professional for your new team member on the ground.
That includes:
Statutory employee benefits (like leave and pension)
Optional perks (like health insurance or work-from-home stipends)
Workspace support (coworking seats in Tbilisi? Covered.)
Equipment policies (who buys the laptop?)
In this article, we’ll break down everything you need to know about what a great EOR in Georgia actually provides, and how to make sure your hires aren’t treated like second-class employees just because they’re in a different country.
New to the EOR model?
What statutory benefits must employers provide in Georgia?
If you’re remote hiring in Georgia, offering a competitive salary isn’t enough. Your employee is expecting a legitimate job, not a patched-together freelance gig dressed up in Slack messages and spreadsheets.
That means you’re legally responsible for certain statutory benefits, and if you skip them? You're not just cutting corners. You’re putting your company at risk.
Let’s break down what you must provide, how it works, and how an Employer of Record (EOR) helps you meet those obligations without lifting a finger.
1. Paid leave (yes, it’s mandatory)
Under Georgian labor law, full-time employees are entitled to:
24 calendar days of paid annual leave per year
Up to 15 days of unpaid leave
Paid public holidays (approximately 15 days per year)
These are not guidelines, they’re the law. And if you’re working with a developer in Tbilisi or a designer in Batumi, they’re legally entitled to these days off regardless of whether you’re based in Berlin, Boston, or Bangkok.
An EOR like Team Up automatically tracks and enforces these leave entitlements through compliant contracts and integrated time-off management systems.
2. Pension contributions
Georgia operates a mandatory private pension scheme under the Pension Reform Act. Here’s how it breaks down:
2% contributed by the employer
2% contributed by the employee
2% matched by the state (for Georgian citizens only)
This applies to employees aged 18–60 (men) or 18–55 (women) unless they formally opt out (which is rare).
EORs ensure contributions are calculated, withheld, and filed accurately—no need to wrestle with pension registration portals or risk noncompliance.
3. Sick leave (sort of)
Sick leave in Georgia is more ambiguous than in most EU countries. Legally, the employer isn’t required to pay for it, but if the employee provides a doctor’s note, the Social Service Agency may reimburse part of the leave.
However, most reputable employers, and all serious EORs, offer some form of paid sick leave to remain competitive and fair. Team Up typically structures this into the employment agreement, aligned with industry norms.
4. Parental leave
Georgia provides:
183 days (or 200 in case of complications or twins) of paid maternity leave
Compensation is capped at 1,000 GEL total paid by the state.
It’s common for international employers to top up this leave to provide a more realistic support package, especially for senior hires. A solid EOR will help you handle this properly and legally.
5. Termination rights and severance
Employers are required to follow strict notice periods and payout obligations:
30 days' notice (or pay in lieu)
At least one month's salary as severance (unless dismissed for cause)
Fail to comply, and you’re open to labor disputes, even if you “only” hired a remote team.
With Team Up as your EOR, termination is structured, compliant, and handled with proper documentation, so you’re protected.
How are employee benefits taxed in Georgia?
Some employee benefits in Georgia are treated as taxable income, meaning they’re not just “perks,” they’re part of your payroll tax math.
We’re talking about things like:
Company-paid housing (beyond state-approved thresholds)
Personal use of company cars
Interest-free or discounted loans
Free goods or services
Education support
Health and life insurance
All of these are considered taxable under Georgian law. If you offer them, they count toward the employee’s gross income and are subject to the standard 20% personal income tax.
Yes, it’s flat. Yes, it’s simple. But only if you actually include those benefits in your payroll reports.
And don’t forget the pension system: 2% from the employer, 2% from the employee, based on the full salary plus taxable benefits.
So if you’re managing payroll in Georgia, whether directly or through an Employer of Record, those “extras” aren’t off the books. They’re very much on the tax radar.
So, If you’re offering anything more than base salary, make sure your EOR (or in-house accountant) is calculating it correctly.
Free perks aren’t free (for your payroll)
In Georgia, is handing out free goods or services to employees? That’s not just a nice gesture, it’s a taxable benefit.
Here’s what that means:
Whatever you give, gift cards, gym memberships, or mobile plans, is valued at fair market price.
That value gets added to the employee’s gross income.
And it’s taxed at the standard 20% personal income rate, just like salary.
For example:
You hand an employee a 400 GEL gadget.
That’s 400 GEL added to their income this month.
The employer calculates and withholds 20% tax on the full amount.
There’s no “oh, it was a one-time thing” loophole. Even small, occasional freebies count, unless the law explicitly says otherwise.
What you need to do:
Track everything. Keep clear records of non-cash perks.
Report it monthly in payroll. Don’t wait.
Calculate the tax and gross it up correctly—because yes, the employer is on the hook.
If you’re using an EOR in Georgia, make sure they’re on top of this. Because tax authorities are
Are low-interest or interest-free loans from employers taxed as benefits in Georgia?
In Georgia, offering your employee a loan with little or no interest sounds generous, but it triggers tax.
Here’s the rule:
If the loan’s interest rate is lower than the official rate set by the Ministry of Finance, the difference is treated as a taxable benefit.
If it’s interest-free? The entire missed interest is taxed like regular salary.
Tax rate? Still 20%.
Who’s responsible? Still you.
Example:
You loan 10,000 GEL at 0%.
The official rate is 10%.
That’s 1,000 GEL of taxable benefit per year.
Added to gross income. Tax withheld by the employer.
And if you forgive the loan entirely?
That full amount is taxable, too.
No sneaky salary disguises. No "friendly loan" loopholes.
The tax office sees it. Your payroll should, too.
Insurance and optional perks offered by EORs
You don’t technically need to offer private health insurance in Georgia.
But try hiring a senior full-stack engineer without it, and watch how fast they ghost your offer.
That’s the difference between legal minimums and local expectations. And when you're hiring in a competitive talent pool like Tbilisi or Kutaisi, meeting expectations isn’t optional. It’s the price of admission.
This is where a good Employer of Record (EOR) steps in, not just to tick legal boxes, but to help you build a compelling offer that local professionals actually want.
Is private health insurance required in Georgia?
Legally? No. Georgia doesn’t require employers to provide health insurance, and there’s no public health system equivalent to EU models.
Practically? Yes, if you want to attract top-tier talent.
Private insurance is expected by:
Senior engineers
Project managers
Sales and marketing roles tied to international markets
Even mid-level professionals may ask for it if they’re considering offers from multiple employers.
With Team Up’s EOR model, you can:
Add private health or dental coverage to your offer
Choose from local or international EOR providers in Georgia
Set employer contribution rates or offer a stipend
We make it seamless and compliant.
Common perks and extras offered by international employers
While not required by law, these perks are increasingly common in Georgia’s tech and startup sector:
Phone allowance (€15–€30/month)
Internet stipend (€20–€40/month)
Wellness or gym reimbursement
Training budget (€200–€500/year per employee)
Performance bonuses or equity participation (structured carefully under local law)
These extras are not just “nice to have.” They’re small signals that your company is legit, that this isn’t some shaky freelance gig with no benefits or structure.
How EORs structure perks into your offer (without legal mess)
Adding perks on your own? You’ll need:
Compliant payroll structures
Legal contract clauses in Georgian
Tax and benefit reporting
Doing this wrong risks misclassification or unpaid tax liabilities.
With an EOR like Team Up, we:
Integrate perks into the local employment contract
Process stipends and allowances through payroll
Ensure every benefit is reported properly to Georgian authorities
It’s clean, legal, and handled for you.
Workspace setups for EOR employees in Georgia
Here’s something most companies forget:
Your remote employee still needs a place to work.
And in Georgia, “remote” doesn’t always mean at home with a laptop on the couch. It might mean coworking in central Tbilisi. It might mean hybrid, with some days in a shared office. Or yes, it might still mean a home office (with real furniture, not just kitchen chairs).
The point is: if you’re hiring someone through an Employer of Record (EOR), you’re also indirectly responsible for their workspace setup and how it affects their productivity, security, and satisfaction.
Do EOR employees in Georgia work remotely?
Most do. Georgia has a thriving remote work culture, especially in:
Tbilisi
Batumi
Kutaisi
But remote doesn’t mean disconnected. Top employers often provide:
Monthly coworking stipends (starting around €100/month)
Home office setups (desk, chair, monitor)
Shared office space for small teams
Some employees prefer coworking to avoid isolation. Others ask for quiet home setups, especially senior devs, project managers, and creatives.
Team Up helps you meet those preferences with flexible, scalable workspace solutions.
Workspace support options via EOR
When you hire through Team Up, you can choose from:
Remote-first: employee works from home with optional stipend
Coworking membership: access to vetted spaces across major cities
Private office space: suitable for multi-person teams or managers
We coordinate:
Contracts with coworking providers
Stipend disbursement through payroll
Employer-branded office presence (when needed)
Everything is wrapped into your monthly invoice, no messy reimbursements or vendor wrangling.
Why this matters
Workspace may not seem like a dealbreaker, until your new hire starts falling behind because their internet’s unstable or they’re working next to a crying toddler.
A clean, professional setup helps:
Boost productivity
Improve employee retention
Show your team that you actually care
In short, it's not a “perk.” It’s part of a real employment experience.
Who handles the equipment and setup?
Let’s get one thing straight: you can’t hire a remote employee in Georgia and expect them to bring their own laptop like it’s a university group project.
Not if you want them to start strong, stay secure, and represent your company professionally.
So, who provides the gear? Who handles the setup? And what if you want them up and running next week?
Here’s how it works when you hire through an Employer of Record (EOR) like Team Up.
What’s typically provided?
For most remote hires, this is the standard expectation:
Laptop (MacBook or high-spec Windows machine, depending on the role)
External monitor
Keyboard and mouse
Headset or mic for meetings
Any licensed software or VPN access
Some roles (like design, data, or DevOps) may require more powerful specs. Others may need additional software, two-factor authentication keys, or corporate accounts.
Bottom line: if it’s necessary for the job, you’re responsible for providing it.
Who buys and who ships?
You have two options:
You ship directly from your HQ or local distributor
Team Up handles procurement and delivery inside Georgia
Option 2 is faster, cheaper, and less of a customs headache.
We source new equipment locally or via regional partners, coordinate setup, and ensure it reaches the employee before Day 1, ready to work, not stuck in a warehouse.
Reimbursement policies via EOR
All hardware and equipment costs can be:
Invoiced directly by Team Up to you (as a one-time or amortized cost)
Processed as part of the monthly payroll if you prefer stipends
Managed under a local reimbursement policy, with receipts and approvals handled by our HR team
No matter which route you choose, we ensure compliance with Georgian tax law so nothing gets flagged.
Onboarding and delivery timelines
With Team Up’s EOR model:
We align on equipment needs before the offer signing
Procurement starts the same week the contract is finalized
Delivery is typically completed within 5–7 business days
Devices arrive pre-configured if needed, with secure login and remote IT access
We also support remote troubleshooting and replacements if something breaks or malfunctions.
Cost and flexibility vs building your own HR ops in Georgia
Sure, you could build your own HR operations in Georgia.
Register a local entity, hire a lawyer, find a payroll provider, figure out what the “Georgian labor code” really means, and hope you don’t miss a form somewhere.
Or, you could just hire through an Employer of Record (EOR) and skip 90% of that.
Let’s break down the cost, flexibility, and value difference.
EOR vs in-house: What’s actually included?
Hiring through Team Up’s EOR model, you get:
Legally binding employment contracts in Georgian & English
Payroll, tax filing, and benefit contributions are done for you
Equipment and workspace handled (if you want)
Statutory leave, onboarding, and offboarding are all wrapped in
One monthly invoice. No messy filings. No surprises.
Building your own HR ops means:
Local incorporation
Hiring internal HR or outsourcing piecemeal
Registering with social agencies and tax authorities
Managing leave, sick pay, and terminations yourself
Staying constantly updated on legal changes
Unless you're planning to scale fast and wide in Georgia, the overhead usually isn’t worth it.
The real value? Not having to think about it
The biggest cost of going in-house isn’t money, it’s time and mental energy.
With an EOR, you don’t need to:
Stress over compliance onboarding
Manually calculate pensions and withholdings
Translate contracts or update legal templates
Chase down coworking providers or equipment receipts
You just tell us who you want to hire. We do the rest.
That speed and simplicity are what let global teams scale without delay.
Whendoesit make sense to build your own HR infrastructure?
A few cases:
You plan to hire 25+ employees in Georgia and open a physical office
You want to hire C-level local talent or relocate foreign executives
You’re seeking long-term tax incentives that require local incorporation
Even then, most companies start with EOR, and only internalize once they’ve proven market fit.
Conclusion + CTA
Hiring in Georgia isn’t just about getting someone on payroll.
It’s about creating a real job, one with structure, security, and support.
A good EOR doesn’t stop at compliance.
They handle the health insurance that your senior developer expects.
They deliver the laptop before Day 1.
They set up the coworking membership, track paid leave, and answer HR questions before you even see them.
That’s what makes your hire stick around.
That’s what makes you look like a serious employer, even if you’re hiring your first person in the region.
Want to see what that looks like in practice?
Book a call and we’ll walk you through how Team Up structures benefits, insurance, and workspace support without the overhead of building HR ops yourself.
One call. Full clarity. Zero guesswork.
