Georgia 2026: payroll, tax and LLC registration facts

Georgia's official GEL 20 figure is nominal rather than a practical hiring floor, so the calculator uses an explicit GEL 1,000 scenario.

At a glance

Fact Published value
Reference rate2.6104 GEL per 1 USD (National Bank of Georgia official exchange rate; effective 2026-09-23)
Monthly gross minimum wage20 GEL/month (Presidential Decree No. 351 on the amount of minimum wage; effective 1999-06-04)
Monthly net minimum wagenot published — we could not confirm this at an official source on 2026
Income tax20 % of taxable income (Tax Code of Georgia, Article 81; effective 2026)
Corporate tax15 % of taxable profit (Tax Code of Georgia, Article 98; effective 2026)
VAT standard rate18 % (Tax Code of Georgia, Article 166; effective 2026)
Dividend WHT, resident5 % withholding at source (Tax Code of Georgia, Article 130; effective 2026)
Weekly hours40 hours/week (Labour Code of Georgia, Article 24; effective 2026)
Overtimeincreased hourly rate; amount set by agreement between the parties no fixed statutory percentage (Labour Code of Georgia (Matsne, English); effective 2026)
Annual leave24 working days/year (Labour Code of Georgia, Article 31; effective 2026)
Probation6 months maximum, once per person (Labour Code of Georgia (Matsne, English); effective 2026)
Notice30 calendar days for the ordinary notice route (Labour Code of Georgia, Article 48; effective 2026)

Currency note

Georgia has a floating exchange-rate regime; NBG calculates the GEL/USD official rate from weighted interbank spot trades and publishes it daily.

Payroll: what the employer and the employee pay

On top of gross pay, an employer in Georgia pays Funded pension at 2%. The employee's own deductions are Funded pension at 2%, followed by a flat 20% income tax. Every rate, cap and source, plus the arithmetic on a real salary, is on the employer-cost page, where the calculator applies the same rules to any monthly gross you type.

Corporate tax, VAT and dividends

The record publishes 15% profit tax, 18% VAT and small-business regimes, while the example uses 2% employee pension, 20% salary tax and 2% employer pension for a covered worker.

Setting up a company

In Georgia, the usual small-company form is the limited liability company (შპს); the state fee is 200 GEL standard registration fee; registration takes 1 working day. Not confirmed at the registry or in the law, and therefore not published here: min capital, notary required, foreign sole owner. The fees, the registry, the portal and the tax questions a new company meets first are on the company-registration page.

Working time, leave and notice

The page does not convert the nominal GEL 20 figure into a hiring recommendation, and it keeps the official working-time, leave, probation and notice rules distinct from market salary planning.

What changed in 2026

Editor's note

The official GEL 20 private-sector minimum-wage decree remains the recorded figure in 2026, unchanged from its 1999 date, but the evidence does not establish a practical wage floor or a replacement amount. No 2027 minimum-wage or tax-rate announcement was found in the searched official sources, so the calculator's GEL 1,000 default is an assumption rather than a legal minimum.

Primary sources verify the 2% employee and 2% employer funded-pension contributions, 20% salary tax, 15% profit tax, 18% VAT, the GEL 100,000 VAT threshold, small-business triggers, LLC rules, NAPR fees and core labour provisions. The state pension co-payment is not employer cost, and pension coverage must be confirmed for the worker.

One secondary labour explanation says Georgia has no national statutory minimum wage, while the official Matsne decree reports GEL 20; this page uses the official decree and flags the conflict. WageIndicator and PwC are corroborating sources only, and director nationality or a blanket foreign-owner permission was not expressly verified.

Sources used on this page

Frequently Asked Questions

Is there a practical minimum wage in Georgia?

The official Matsne Decree No. 351 states GEL 20 per month, but the assigned research describes that figure as nominal and not a practical hiring floor. A secondary explainer conflicts by saying there is no national statutory minimum, so a founder should confirm the applicable employment rule rather than use GEL 20 as a market salary.

Why does the calculator use GEL 1,000?

GEL 1,000 is the recorded calculator scenario because the official GEL 20 figure is not a practical budgeting assumption. It is not a statutory minimum and it does not predict an offer. The employer should replace it with the real gross salary and confirm pension coverage, benefits and worker status.

What tax is used in the example?

The example uses the Tax Code's verified 20% salary-tax treatment together with 2% employee and 2% employer funded-pension contributions for a covered worker. The state co-payment is excluded from employer cost, and small-business, micro-business, free-zone or worker-status rules can change the outcome.

Is the state pension co-payment employer cost?

No. The funded-pension record separates the employer's 2% and employee's 2% contributions from the state's co-payment bands. The calculator therefore includes the verified employer contribution but excludes the state amount, and the employer must confirm that the worker is covered before relying on the scenario.

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