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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