The Funded Pension Scheme in Georgia
Since 1 August 2018, Georgia has had a mandatory funded pension scheme with defined contributions, managed by the Pension Agency of Georgia.
Membership
Enrolment is mandatory for all employees (except those who had reached age 60 for men, 55 for women, before 1 August 2018, who may choose to join voluntarily). Self-employed workers may also join voluntarily. Employees over 40 years of age before that date who did not wish to participate were able to exercise an opt-out option.
Contribution Structure
For an employee with a gross contractual salary of 1,000 GEL:
| Contributor | Rate | Amount |
| Employee (deducted from salary) | 2% | 20 GEL |
| Employer | 2% | 20 GEL |
| State (for income ≤ 24,000 GEL/year) | 2% | 20 GEL |
| State (for income 24,000–60,000 GEL/year) | 1% | — |
| Total on individual account | ≥ 6% | ≥ 60 GEL |
For self-employed workers: 4% of their annual income. The State contributes only if employee and employer contributions have been paid first.
Implications for the Employer
The employer must pay its 2% contribution in addition to the gross salary. This amount is not included in the gross salary — it is an additional employer charge. Payment is made electronically to the employee's individual pension account at the time of salary payment.
Practical calculation: For a net (take-home) salary of 784 GEL, the total employer cost is 1,000 GEL (gross salary) + 20 GEL (employer pension contribution) = 1,020 GEL. Withheld income tax is 196 GEL, and the employee pension contribution is 20 GEL.