There is an accumulated pension scheme in Georgia, the membership of which is required by law for some employees in the part of income received in the form of salary, and for some is voluntary. The pension contributions of the employee and the self-employed participant in the accumulated pension system are financed by the employer, the employee and the state.
The pension contributions of the participating employee are financed as follows:
• When paying a salary, the employer makes a pension contribution in the amount of 2 percent of the taxable salary to be paid to the employee through the electronic system to the individual pension account of the participating employee;
• The employer, on behalf of the participating employee, makes a pension contribution in the amount of 2 percent of the taxable salary to be paid to the employee through the electronic system to the employee's individual pension account;
• The participating self-employed person makes a pension contribution of 4 percent of his/her annual income;
• In favor of the participant, the state shall pay 2 or 1 percent to the individual pension account of the participant for the amount of taxable salary of the employee and/or the income of the self-employed person, which does not exceed the total amount established by law received in the form of annual salary and/or income received by the self-employed person in the form of income.
A Pension Agency has been set up to implement, manage and administer the accumulated pension scheme.
The business entity is obliged to submit a monthly declaration to the Pension Agency on the persons participating in the accumulative pension scheme and the transferred funds. Failure to submit or incomplete submission of the declaration results in financial liability of the business entity.
We offer the consultation on the obligations of companies related to accumulated pension issues in Georgia, as well as monthly preparation and submission of pension declarations.
Schedule a consultation with us!