🇬🇪 Tax Code Art. 81 • 20% Flat PIT • Pillar II Pension Agency

Georgia Salary, Income Tax & Pension Calculator

Compute monthly take-home pay, 20% PIT withholding, Pillar II funded pension contributions (employee, employer, and state), and total employer payroll burden.

Quick Presets:

Direction of tax calculation

₾

Official monthly remuneration

Law of Georgia on Funded Pensions

Employee Net Take-Home Pay
₾ 0.00
≈ $0 USD / month
Gross Salary: ₾ 0.00
Total Employer Payroll Cost: ₾ 0.00
Monthly Pension Fund Added: ₾ 0.00
Personal Income Tax (20%) ₾ 0.00
Employee Pension (2%) ₾ 0.00
Employer Pension (2%) ₾ 0.00
State Pension Co-Fund (1–2%) ₾ 0.00

Georgian Payroll Tax & Pillar II Pension Statutory Schedule

Deduction Component Statutory Rate Borne By Remittance Recipient Filing Due Date
Personal Income Tax (PIT) 20.0% Flat Employee (withheld) Revenue Service (RS.ge) 15th of following month
Employee Pension Contribution 2.0% Gross Employee (withheld) Pension Agency of Georgia 15th of following month
Employer Pension Contribution 2.0% Additional Employer (payroll cost) Pension Agency of Georgia 15th of following month
State Pension Co-Contribution 2.0% (Annual ≤ 24k) / 1.0% (≤ 60k) State Treasury Budget Employee Pension Fund Automated allocation
Social Security Payroll Tax 0.0% (Abolished) None N/A N/A

How Salary Taxation Operates in Georgia

Georgia maintains one of the simplest payroll tax regimes worldwide. Under Article 81 of the Tax Code of Georgia, employment compensation is subject to a flat 20.0% Personal Income Tax. Employers act withholding agents and are responsible for remitting PIT to RS.ge by the 15th of each calendar month.

The 2% + 2% + 2% Funded Pension Architecture

Established under the Law of Georgia on Funded Pensions, Pillar II ensures individual asset accumulation:

  • Employee 2%: Deducted from the employee's pre-tax gross salary.
  • Employer 2%: Added extra corporate payroll contribution on top of the base salary.
  • Government Co-Funding: The Georgian state deposits an additional 2% if the worker's annual income is up to 24,000 GEL (or 1% if annual income is between 24,000 and 60,000 GEL).
  • Exemption for Foreigners: Non-resident expats residing on temporary visas are not mandated to enroll, enjoying 80% net take-home pay.

Frequently Asked Questions

What is the Personal Income Tax (PIT) rate on employment salary in Georgia?

Under Article 81 of the Tax Code of Georgia, employment salary is subject to a flat Personal Income Tax (PIT) rate of 20.0%, withheld directly by the employer and remitted to RS.ge by the 15th of the following month.

How does the Georgian Pillar II Funded Pension Scheme operate?

Under the Law of Georgia on Funded Pensions, contributions are split in a 2% + 2% + 2% model: the employee contributes 2% of gross salary, the employer contributes an additional 2%, and the Government co-funds up to 2% (for annual salaries up to 24,000 GEL, reduced to 1% between 24k and 60k GEL).

Are foreign expatriates required to participate in the Georgian pension scheme?

No. Foreign citizens and stateless persons residing in Georgia on temporary residence permits are legally exempt from mandatory pension contributions, taking home 80% of gross salary (subject only to 20% PIT).

Does Georgia have mandatory employer social security contributions?

Georgia is unique among European nations in having completely abolished general social security payroll taxes. Employers pay only the gross salary plus the 2% pension contribution (if enrolled), creating one of the lowest total employment cost structures in the OECD/Eurasian area.

How is a net salary converted to gross salary in Georgia?

For a pension-enrolled employee, net pay represents 78% of gross salary (Gross = Net / 0.78). For a pension-exempt employee, net pay represents 80% of gross salary (Gross = Net / 0.80).

MS

Engr. Muhammad Shahzad

Verified Compliance Author

Principal Civil & Systems Software Engineer specializing in Caucasian statutory payroll architecture, Pillar II pension actuarial mechanics, and Revenue Service of Georgia (RS.ge) wage reporting systems.

Learn more about author credentials & verification →

📊 Revenue Service of Georgia (RS.ge) & Pension Agency Matrix

Statutory Component / Legal Deduction Item Calculated Amount (GEL)
Primary Net / Statutory Payable Amount 0.00 ₾
MS

Engr. Muhammad Shahzad

Principal Financial Systems Architect & Caucasus Fiscal Integration & Revenue Service of Georgia Architect

Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.

Verified Profile & Methodologies →