Georgia Social Contributions Guide 2026

Overview — No Social Contributions in Georgia

Georgia stands out as one of the few countries in the world with no mandatory social security contributions. The government abolished all social taxes and contributions in 2008 as part of a radical tax reform package designed to attract investment and reduce the cost of employment. This means:

• Employers pay 0% on employee salaries for social security
• Employees pay 0% on their salaries for social security
• No health insurance contribution — healthcare is funded from general taxation
• No unemployment insurance — no mandatory unemployment scheme
• No maternity/paternity leave fund — employers may provide these benefits voluntarily

This creates a significant cost advantage for businesses operating in Georgia compared to neighbouring countries where social contributions can add 30–40% on top of gross salaries.

Voluntary Funded Pension Scheme — 2% Contribution

In 2018, Georgia introduced a voluntary funded pension scheme. Key features:

• Employee contribution — 2% of gross salary (voluntary, opted-in)
• Employer contribution — optional, some employers match the 2%
• State contribution — the state matches the employee's 2% contribution (up to a ceiling)
• Fund management — contributions are invested in a diversified portfolio managed by approved private pension funds
• Opt-out option — employees who do not wish to participate can opt out annually

The scheme is individual-account-based (defined contribution) and fully portable. Upon retirement (age 60), the accumulated funds can be withdrawn as a lump sum or as an annuity. The scheme is relatively new and participation rates are moderate.

Healthcare System

Georgia's healthcare system is funded through general taxation rather than payroll contributions. The Universal Healthcare Program provides a basic package of services to all citizens, funded from the state budget. Individuals may purchase private health insurance for additional coverage. Employers may offer private health insurance as a benefit, but there is no mandatory requirement. The absence of payroll-based health contributions simplifies payroll administration and reduces the tax wedge on labour.

International Comparison

Georgia's 0% social contribution rate is unique in the region. For comparison:

• Armenia — employee 5% + employer 5% social contributions
• Azerbaijan — employee 3% + employer 22% social contributions
• Turkey — employee 14% + employer 20.5% social contributions
• EU average — approximately 30% combined social contributions
• Georgia — 0% combined

This makes Georgia one of the most cost-effective jurisdictions in Europe for employing staff, particularly relevant for labour-intensive businesses and startups.

FAQs

Do I have to pay any social contributions as an employee in Georgia?

No, mandatory social contributions were abolished in 2008. The only payroll deduction is income tax (20% on local-source income). There is no employee social security, health insurance, or unemployment contribution.

Is the voluntary pension scheme worth joining?

Yes, because the state matches your 2% contribution, it effectively provides a 100% immediate return on your contribution. However, the funds are locked until retirement (age 60). The opt-out option means you can join and leave annually.

Does Georgia have workers' compensation insurance?

Employers are required to obtain private workers' compensation insurance for employees in certain high-risk industries. This is a private insurance arrangement, not a government social contribution.

Disclaimer

This guide provides general information about Georgian social contributions for the 2026 tax year. Laws may change. Always consult with a qualified Georgian tax advisor or the Georgia Revenue Service for advice specific to your situation. InvestmentKit does not provide tax advice.