Georgia Social Contributions

---
name: georgia-social-contributions
description: "Social contributions in the country of Georgia (Sakartvelo, GE, currency GEL; not the US state) for tax year 2026: the funded pension under the Law of Georgia on Funded Pension, the only contribution levied on earnings. Covers who must join (employees, except those who were 60 or 55 before the Law), voluntary joining for older employees and the self-employed, the age-40 opt-out, the rates (employee 2%, employer 2%, self-employed 4%, state 2% on the first GEL 24,000 of the year's income and 1% up to GEL 60,000), the base, when contributions are paid, the GEL 300 fine and lost-benefit charge, the income tax treatment of contributions and payouts, foreigners and leaving Georgia. Trigger on: Georgia pension contribution, funded pension 2% Georgia, Pension Fund of Georgia, pensions.ge, self-employed pension Georgia 4%, social security Georgia. Out of scope: running a payroll (georgia-payroll), income tax (georgia-income-tax), VAT (georgia-vat)."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/georgia-social-contributions"
  jurisdiction: "GE"
  tax_year: "2026"
  last_updated: "2026-10-31"
  reviewed_by: "Gvantsa Amiridze"
---

# Georgia (country): social contributions and the funded pension (2026) v0.2

Georgia's mandatory contribution on earnings is the funded pension. The employee pays 2%, the employer adds 2%, and the state adds up to 2%. A self-employed person who joins pays 4%. The money goes to the participant's individual account at the Pension Fund of Georgia (pensions.ge). The Tax Code lists the national taxes as income tax, profit tax, VAT, excise and import duty, and property tax as the local tax (Tax Code art. 6(5)-(6)); none of them is a social security, health or unemployment tax on pay. Figures below are from the Law of Georgia on Funded Pension (No 3303, 21 July 2018), Georgian consolidated text to the law of 16 September 2026, and the Tax Code of Georgia, consolidated to the law of 15 October 2026 (publication 247).

## Who this applies to

- **Employees.** Joining the scheme and paying contributions is mandatory for every employee on each salary, except an employee who was 60 (men) or 55 (women) before the Law came into force (Law on Funded Pension art. 3(2)). An employee becomes a participant with the employer's first contribution (art. 21(1)).
- **Voluntary participants.** Employees who were 60 or 55 before the Law, and the self-employed, may join. Once joined, contributions on each salary or on each period's self-employed income are mandatory (art. 3(3), 21(3)-(4)).
- **Self-employed** means an entrepreneur natural person registered as a taxpayer, and also an employee whose employer does not have to withhold income tax at source (art. 2 i)).
- **Opt-out.** An employee who was 40 or older before the Law came into force may leave within 5 months of automatic enrolment, but not earlier than 3 months after it (art. 3(5), 22(1)).
- **Scope of the Law.** It applies to employers, Georgian citizens, and foreign citizens and stateless persons with a permanent residence permit in Georgia (art. 1(4)). An employer for the scheme is a person, other than a non-resident, who pays for an employee's work or services (art. 2 e)).
- **Employee** includes a person working under civil or labour law contracts, members of the defence and law enforcement services, directors of a company, and public servants (art. 2 f)).
- Not here: computing withholding and net pay (see [georgia-payroll](georgia-payroll.md)); income tax on the self-employed (see [georgia-income-tax](georgia-income-tax.md)).

## Rates, bands and thresholds

| Item | Rate or amount | Year | Source |
|---|---|---|---|
| Employer contribution, at its own cost | 2% of the employee's taxable salary | 2026 | Law on Funded Pension art. 3(6)(a), https://matsne.gov.ge/ka/document/view/4280127?publication=13 |
| Employee contribution, withheld by the employer | 2% of taxable salary | 2026 | art. 3(6)(b), same URL |
| Self-employed contribution | 4% of self-employed income for the period | 2026 | art. 3(6)(d), same URL |
| State contribution, first GEL 24,000 of the calendar year's salary or income | 2% | 2026 | art. 3(6)(e.a), same URL |
| State contribution, from GEL 24,000 to GEL 60,000 | 1% | 2026 | art. 3(6)(e.b), same URL |
| State contribution above GEL 60,000 | none | 2026 | art. 3(6)(f), same URL |
| Total paid into an employee's account (employee + employer + state) | 6% of salary within the first GEL 24,000 of the year, 5% from GEL 24,000 to GEL 60,000, 4% above GEL 60,000 | 2026 | art. 3(6)(a), (b), (e), (f), same URL |
| Ceiling on the employee, employer or self-employed contribution | none set | 2026 | art. 3(6)(a), (b), (d), same URL |
| Age test for mandatory joining | 60 for men, 55 for women, before the Law came into force | 2026 | art. 3(2), 21(1), same URL |
| Opt-out window (employees 40 or older before the Law) | not earlier than 3 months and within 5 months of enrolment | 2026 | art. 22(1), same URL |
| Fine for an employer's missed or late contribution | GEL 300 | 2026 | art. 37^3(1), same URL |
| Fine cancelled if paid in full | within 10 working days of the fine | 2026 | art. 37^3(2), same URL |
| No breach if a month's total contributions are | GEL 1 or less | 2026 | art. 37^3(3)(c), same URL |
| Employer and state contributions in the employee's salary | not salary | 2026 | Tax Code art. 101(3)(d), https://matsne.gov.ge/en/document/view/1043717?publication=247 |
| Contributions to the individual account, returns on them, pensions paid under arts. 32-34(3) | exempt from income tax, with the exceptions in art. 82(1)(b3.a)-(b3.c) | 2026 | Tax Code art. 82(1)(b3), same URL |

## The taxable base

**Employees.** The base is the taxable salary paid in the reporting period (art. 3(6)(a)-(b)). Salary here means income from employment or services that is taxed at source under Tax Code art. 101. It excludes the company-car charge in art. 101(2^1), income that is not Georgian-source, and royalties, rent and investment income (art. 2 h)). See [georgia-payroll](georgia-payroll.md) for the full calculation.

**Self-employed.** For an individual entrepreneur the base is income from entrepreneurial activity that is taxable with income tax under the Tax Code (art. 2 k.a)). For an employee whose employer need not withhold, it is that taxable salary (art. 2 k.c)).

**The state bands run on the calendar year.** The annual salary or income is what the participant receives from 1 January to 31 December. For a new participant it runs from joining to 31 December of that year (art. 2 h1)). The state pays 2% while the year's total is within GEL 24,000, 1% on the part from GEL 24,000 to GEL 60,000, and nothing above GEL 60,000 (art. 3(6)(e)-(f)).

**Opt-out.** After a valid opt-out under art. 22(1) the employee is no longer a participant, so nothing more is withheld or paid for him or her. The employee's own contributions, with their investment income less costs, are returned to the employee (and taxed, Tax Code art. 82(1)(b3.b)). The employer's contributions, with their income less costs, go back to the employer. The state's contributions go to the Pension Fund's treasury account and their income to the State Treasury (Law art. 22(3)(a)-(c)). The employee may rejoin at any time (art. 22(4)).

**Breaks.** A participant whose salary or self-employed income stops for a time stops contributing and restarts when income restarts. The assets stay in the account (art. 23(1)-(2)).

**Income tax.** Employer and state contributions are not the employee's salary (Tax Code art. 101(3)(d)). Contributions to the individual account, returns on them, and pensions paid at retirement under arts. 32-34(3) are exempt from income tax (art. 82(1)(b3)). Three sums are not exempt: contributions made in error and returned, contributions returned to an employee who opted out under art. 22, and assets paid out on leaving Georgia for good (art. 82(1)(b3.a)-(b3.c)). The Pension Fund withholds the tax when it pays these (art. 154(1)(q)).

**Payout.** After retirement age the participant may take the account as a lump sum or programmed withdrawal, or buy an annuity (art. 32(1)-(2)). The Pension Fund sets the limit up to which a lump sum is allowed (art. 32(5)).

## Deadlines and filing

| What | Deadline | Source |
|---|---|---|
| Employer and employee contributions | no later than the day the income tax return is filed, on the basis of that return | Law on Funded Pension art. 3(6)(a)-(b) |
| Employer's monthly return of salaries paid and tax withheld (the return the contributions follow) | by the 15th of the month after the month | Tax Code art. 153(5), 154(4) |
| Self-employed contribution | on the day the income tax return is filed | Law on Funded Pension art. 3(6)(d) |
| Individual entrepreneur's annual income tax return | before 1 April of the following year (Georgian text: "1 აპრილამდე", so by 31 March) | Tax Code art. 153(1)(a) |
| Opt-out request | between 3 and 5 months after enrolment, in writing to the Pension Fund | Law on Funded Pension art. 22(1) |
| Rejoining after an opt-out | at any time, by application to the Pension Fund | art. 3(9), 22(4) |
| Pension Fund may fine the employer | within 6 months of finding the breach | art. 37^3(5) |

Contributions are paid in lari (art. 3(7)).

## Penalties and interest

| Breach | Penalty | Source |
|---|---|---|
| Employer does not make its own or the employee's contribution, or makes it late | GEL 300 fine | Law on Funded Pension art. 37^2(1), 37^3(1) |
| Contribution and lost benefit paid in full within 10 working days of the fine | fine cancelled | art. 37^3(2) |
| Lost benefit of the participant | charged to the employer from the breach until the contribution is paid in full; it continues during an appeal and during insolvency | art. 37^4(1)-(4) |
| After a fine | the employer still pays the missed contribution, at its own cost | art. 37^2(5) |
| Not a breach | a corrected return after which the contribution is paid on time and properly; a month's total contributions of GEL 1 or less | art. 37^3(3) |
| Breaches before 1 May 2025 put right before a Pension Fund check | no fine | art. 38(15)-(16) |
| Employer persuades or pressures an employee about opting out | prohibited | art. 22(2) |

The Pension Fund finds breaches by matching its records with Revenue Service data and by checks on the employer (art. 37^2(2)-(3)). The fine goes to the state budget (art. 37^3(4)).

## Cross-border points

- **Foreign employees** without a permanent residence permit are outside the Law (art. 1(4)). Foreigners and stateless persons with a permanent residence permit are inside it.
- **Non-resident employers** are not employers under the Law (art. 2 e)). Where the employer does not have to withhold Georgian income tax, the employee counts as self-employed for the scheme (art. 2 i), k.c)).
- **Leaving Georgia for good.** A participant whose Georgian citizenship ends or who loses the permanent residence permit may take the account as a lump sum. If he or she later regains citizenship or a permit, contributions restart (art. 34^1(1)-(2)). The lump sum is taxed (Tax Code art. 82(1)(b3.c)).

## Worked examples

**Example 1. Employee on GEL 2,500 a month.** A resident employee in the scheme earns GEL 2,500 a month, GEL 30,000 in 2026. The employer withholds 2%, GEL 50 a month (GEL 600 a year), and adds its own 2%, also GEL 600 a year. The state pays 2% of the first GEL 24,000, GEL 480, and 1% of the next GEL 6,000, GEL 60, so GEL 540. In all GEL 1,740 goes into the account for 2026. Contributions for each month are paid by the day the monthly return is filed, the 15th of the next month.

```oa-check
name: Georgia funded pension, employee on GEL 30,000 a year, 2026
inputs:
  monthly_salary: 2500
  months: 12
  employee_rate: 0.02
  employer_rate: 0.02
  state_band_1: 24000
  state_band_2: 60000
steps:
  - annual_salary: monthly_salary * months
  - employee_contribution: annual_salary * employee_rate
  - employer_contribution: annual_salary * employer_rate
  - state_at_2: min(annual_salary, state_band_1) * 0.02
  - state_at_1: max(min(annual_salary, state_band_2) - state_band_1, 0) * 0.01
  - state_contribution: state_at_2 + state_at_1
  - total_to_account: employee_contribution + employer_contribution + state_contribution
expected:
  annual_salary: 30000
  employee_contribution: 600
  employer_contribution: 600
  state_at_2: 480
  state_at_1: 60
  state_contribution: 540
  total_to_account: 1740
```

**Example 2. Self-employed participant above GEL 60,000.** An individual entrepreneur taxed under the general 20% rules joined the scheme voluntarily. Her taxable business income for 2026 is GEL 70,000. Her own contribution is 4%, GEL 2,800, paid on the day she files her 2026 income tax return, by 31 March 2027 (before 1 April) (art. 3(6)(d); Tax Code art. 153(1)(a)). The state pays 2% of GEL 24,000, GEL 480, plus 1% of GEL 36,000, GEL 360, so GEL 840. Nothing is added on the GEL 10,000 above GEL 60,000. GEL 3,640 goes into her account.

```oa-check
name: Georgia funded pension, self-employed on GEL 70,000, 2026
inputs:
  self_employed_income: 70000
  own_rate: 0.04
  state_band_1: 24000
  state_band_2: 60000
steps:
  - own_contribution: self_employed_income * own_rate
  - state_at_2: min(self_employed_income, state_band_1) * 0.02
  - state_at_1: max(min(self_employed_income, state_band_2) - state_band_1, 0) * 0.01
  - income_without_state_share: max(self_employed_income - state_band_2, 0)
  - state_contribution: state_at_2 + state_at_1
  - total_to_account: own_contribution + state_contribution
expected:
  own_contribution: 2800
  state_at_2: 480
  state_at_1: 360
  income_without_state_share: 10000
  state_contribution: 840
  total_to_account: 3640
```

## Ask the client first

1. Is this the country of Georgia (GEL), not the US state?
2. Is the person a Georgian citizen, or a foreigner with or without a permanent residence permit?
3. Employee or self-employed? If self-employed, has he or she joined the scheme, and under which tax regime is the business taxed?
4. Date of birth (60/55 test and the 40+ opt-out), and has the person opted out or rejoined?
5. Salary or income month by month in 2026, from every employer?
6. Any missed or late contributions, or a Pension Fund letter?

## Sources

| Source | URL | Read on |
|---|---|---|
| Law of Georgia on Funded Pension No 3303, Georgian, consolidated to the law of 16 September 2026: arts. 1, 2, 3, 21-23, 32, 34^1, 37^2-37^5, 38, 39 | https://matsne.gov.ge/ka/document/view/4280127?publication=13 | 2026-10-31 |
| Law of Georgia on Funded Pension, English, consolidated to 26 June 2025 (translation of the same articles) | https://matsne.gov.ge/en/document/view/4280127?publication=12 | 2026-10-31 |
| Tax Code of Georgia, English, consolidated publication 247 (to the law of 15 October 2026): arts. 6, 82(1)(b3), 101(3)(d), 153, 154 | https://matsne.gov.ge/en/document/view/1043717?publication=247 | 2026-10-31 |

Not yet confirmed: the exact date of the 60/55 and 40+ age tests (the Law came into force on publication in August 2018 and its art. 21 on 1 January 2019, art. 39); whether a small business status taxpayer counts as self-employed for the 4% and on what income; whether the state bands add up salary from several employers; whether a self-employed person's 4% is deducted from his or her income tax base; the Pension Fund's lump-sum limit and its rules for computing lost benefit; how pension data now flows from the Revenue Service return (the old version said a separate pension declaration ended on 1 May 2025, citing a private source); retirement age; minimum wage.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-10-31. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `georgia-social-contributions` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/georgia-social-contributions. If neither is available, confirm every figure against the official source pages cited above before relying on it.