Georgia
[Updated 4/16/24] Healthcare in Georgia is the most important employee benefit. In a country where many people live beneath the poverty line, healthcare is deemed vital.
Country Insight
Average Costs
The average cost for employee benefits per employee is 15$U.S. per month.
Mandatory employee benefits in Georgia include a pension savings scheme and mandatory personal accident insurance.
Mandatory Employee Benefits in Georgia
Pension Savings Scheme
The reform applies to citizens of Georgia who are employed or self-employed and receive income from employment or self-employment. Except for non-resident natural persons, it also applies to foreign citizens and stateless persons permanently residing in Georgia. It is mandatory for all citizens except non-residents who have not attained the age of 40 as of August 6, 2018.
Participation in the pension scheme is voluntary for:
- All self-employed persons, regardless of age
- All employed persons who were 40 years of age or older as of August 6, 2018
As of January 1, 2019, all Georgian citizens employed in Georgia and foreign citizens permanently residing in Georgia, who, as of August 6, 2018, had not yet reached the age of 55 in the case of women) and age of 60 (in case of men), will automatically join the pension scheme. Georgian citizens employed in Georgia, foreign citizens permanently residing in Georgia, or self-employed persons who are not subject to automatic membership shall have the right, but not an obligation, to join the pension scheme voluntarily through registering in the electronic system of administration of pension contributions of the Agency (www.pensions.ge).
Employed people who, as of August 6, 2018, reached the age of 40 or older became entitled to withdraw from the pension scheme by applying to the Pension Agency as of April 1, 2019, or after 3 months from the date when the employer made a pension contribution to the employee’s account, whichever date is earlier. In such cases, pension contributions shall be fully reimbursed to them, their employer, and the state.
Rejoining the pension scheme is possible by applying through the employer.
Employees’ pension contributions are financed in the following manner:
- The employer pays 2% of taxable wages on behalf of each employee participant through an electronic system into the employee’s individual pension account.
- Self-employed participants pay 4% of their annual income.
- The State pays 2% of an employee’s taxable wage or income for the self-employed earning under 24,000 Lari. The benefit is paid as annual wages and/or received as income by self-employed people. For those making 24,000 to 60,000 Lari annually, the State contributes 1% of a person’s taxable wage. The State does not contribute to those earning over 60,000 Lari annually.
For this purpose, the law established an independent legal entity called the Pension Agency, which is responsible for implementing, managing, and administrating the funded pension scheme. It is organized in such a way as to ensure the safety of participants’ pension assets and long-term investment returns.
Employees’ Mandatory Personal Accident Insurance
Since 2019, by the decision of the Government of Georgia, insurance has become mandatory for employers to provide compulsory accident insurance for employees performing hazardous work.
The purchase of compulsory insurance has become mandatory for all legal entities, including self-employed persons who were granted the status of high-risk work performers, according to the Government Resolution of July 27, 2018.
Financing of Healthcare
In 2013, the Georgian government launched the ‘State Universal Health Care Program,’ a minimum service package for all citizens without state or private insurance. Yet out-of-pocket expenditure remains a barrier to accessing health services. The Georgian Healthcare System State Concept 2014-2020 is a national health plan that heavily emphasizes health in all policies. The UHC Partnership will support the review and operationalization of the primary care strategy 2016-2023, as well as build capacity around strategic purchasing to enhance efficiency in the organization and delivery of publicly financed health services.
Citizens whose income exceeds 40,000 GEL per year and citizens with private insurance can’t be participants in the Universal Health Care Program. The exception is oncological treatment and surgery, which is covered for all citizens of Georgia, regardless of their income.
Also, some large or international companies provide employees with private insurance.
Related Government Website
Ministry of Labour, Health, and Social Affairs
This information about mandatory and supplemental employee benefits in Georgia comes from Asinta’s Central and Eastern European Partner, the GrECo Group.