Defined Pension Contribution

A “defined contribution scheme” was introduced on 1 January 2019. The scheme applies to employers, citizens of Georgia and foreign nationals and stateless persons residing in Georgia on a permanent basis (but not to non-resident individuals who hold Georgian citizenship). Amounts payable under the defined contribution scheme are shown in the table illustrated below:

 

PENSION CONTRIBUTION STRUCTURE FOR EMPLOYEES

Annual gross salary

Pension contribution by employee

Pension contribution by employer

State contribution

less than 24, 000 GEL

2%

2%

2%

more than 24, 000 GEL

2%

2%

1%

more than 60, 000 GEL

2%

2%

0%

 

PENSION CONTRIBUTION STRUCTURE FOR SELF-EMPLOYEED

Annual gross salary

Pension contribution by employee

Pension contribution by employer

State contribution

less than 24,000 GEL

4%

0%

2%

more than 24,000 GEL

4%

0%

1%

more than 60,000 GEL

4%

0%

0%

 

 PARTICIPATION RULES IN THE DEFINED CONTRIBUTION SCHEME

less than  55 years old for women/ 60 years old for men

Leave the scheme on the basis of a personal statement

more 55 years old for women / 60 years old for men

Join the scheme on the basis of a personal statement

less than 40 years old

Participation is mandatory


Please note, the date to determine the age of the employee/self-employed for the purposes of participation in the contribution scheme is 6th of August, 2018 year.

*This is general information only. Georgia's tax code is very extensive and taxes may vary depending on the particular situation.  Before making any decision that may effect on your business or private finance, you should consult a qualified professional adviser. We don’t take any responsibility for any loss by any person/entity who relies on this communication.

Last updated on 25th of January 2020