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What a salary in Georgia pays, and what it costs

Georgian payroll has three lines: a flat 20% income tax, a 2% employee pension deducted before it, and a matching 2% employer share. That is the whole system, so this tool shows the employee and employer sides of the same salary at once.

Inputs

GEL / month

Verified 22 Aug 2026PwC Georgia · Law on Funded Pension · NBG

Result: both sides at once

₾3,920employee net per month ($1,500)
₾5,100
total employer cost ($1,952)
₾980
income tax, flat 20%
₾200
pension, 2% + 2%
78.4%
of gross reaches the employee
Employee net: ₾3,920 / monthIncome tax: ₾980 / monthPension (both shares): ₾200 / month
Why the coefficient is 0.784, not 0.78. The 2% pension is deducted before the 20% tax, so a covered employee nets gross × 0.98 × 0.80. Several expat calculators apply the tax to the full gross and get it wrong.
Methodology and sources

For a pension-covered employee: net = gross × 0.98 × 0.80 = gross × 0.784, and employer cost = gross × 1.02. Coverage is mandatory for Georgian citizens and permanent residents; foreign employees without permanent residence sit outside the scheme, so they net a flat 80% and cost exactly their gross. There are no other social charges of any kind. The dollar view uses the National Bank of Georgia rate of 2.6125 GEL/USD as of 22 Aug 2026.

  • Flat 20% PIT; small business 1%/3% regime · PwC Worldwide Tax Summaries, Georgia (reviewed Jan 2026)
  • Funded pension 2+2+2, coverage and no-cap rules · Law of Georgia on Funded Pension
  • Pension-before-tax ordering (0.784 net coefficient) · Georgian payroll practice, confirmed against accounting software documentation and worked payroll calculators
  • Small Business Status mechanics and prohibited activities · Government Decree No. 415; Revenue Service guidance
  • Small Business Status effective from the application date · Special tax regime amendments in force 7 Mar 2026
  • GEL/USD official rate · National Bank of Georgia