Georgian Labor Code Articles 41-44Wages & payment

Wage payment rules under the Georgian Labor Code (Articles 41-44)

Also known as: Georgia wage payment rules, Article 41 Labor Code, salary payment Georgia

Articles 41-44 of the Georgian Labor Code require pay — in money or in kind, in the form and amount set by the employment contract — to be issued at least once a month, with 0.07% of the delayed amount owed for each day of delay. Deductions are limited to overpayments and other sums the employee owes the employer under the employment relationship, at most 50% of pay at a time, and the final settlement is due within 7 calendar days of termination.

Wage payment seems straightforward until something breaks — a delayed payroll, a deduction the employee disputes, a final payment that arrives weeks after the last day. Articles 41-44 set the framework: pay at least monthly, a daily charge for late payment, capped deductions, full pay during downtime the employer caused, and a 7-day deadline for the final settlement. Most Georgian SMBs handle this fine until they hire an employee who knows their rights and starts asking specifics. This article walks through what the law actually requires so you're not blindsided.

Core requirements under Articles 41-44

Pay must be issued at least once a month (Article 41(3)); more frequent payment is allowed
Pay can be in money or in kind; its form and amount are set by the employment contract (Article 41(1)-(2))
Pay and the procedure for paying it are essential terms of the employment contract (Article 14(1)(f))
Each day of delay costs the employer 0.07% of the delayed amount (Article 41(4))
Forced downtime caused by the employer is paid in full unless the contract says otherwise; downtime caused by the employee is unpaid (Article 42)
Deductions are limited to overpayments and other sums owed under the employment relationship, at most 50% of pay at a time (Article 43)
Final settlement is due within 7 calendar days of termination unless the contract or a law says otherwise (Article 44)

Permissible deductions

Deductions from gross wages fall into three categories. (1) Statutory withholding under tax and pension law: 20% income tax, 2% employee pension contribution (for participants in the pension scheme). (2) Court-ordered: alimony, court-imposed debt enforcement. (3) Employer deductions under Article 43 of the Labor Code: the employer may deduct overpaid amounts and any other sum the employee owes it arising from the employment relationship, but the total deducted at one time may not exceed 50% of the employee's pay. Deductions outside these categories, such as voluntary health insurance or charity payroll giving, should rest on the employee's written agreement.

Payslips and pay records

The Labor Code does not prescribe a payslip. What it does require: the employer records hours worked on each working day, in writing or electronically, shows the employee the monthly working-time record and keeps it for 1 year, unless the way work is organised makes this impossible (Article 24(11)); and on request the employer must issue an employment certificate covering the work performed, pay and contract term (Article 14(2)). A payslip showing gross pay, each deduction with its basis, and net pay is still good practice — it is the easiest way to prove what was paid if a dispute arises.

Currency and form

Wages may be paid in Georgian Lari (GEL), USD, or another currency if the employment contract specifies. Bank transfer is by far the most common method in 2026 SMB practice and is recommended for audit clarity. Cash payment is permitted but creates documentation friction. The Labor Code expressly allows pay in money or in kind (Article 41(1)) and leaves the form and amount to the employment contract (Article 41(2)) — so any payment in kind should be written into the contract.

Late payment liability

Article 41(4) makes wage payment punctuality a substantive obligation, not a courtesy. For each day that any pay or settlement is delayed, the employer owes the employee 0.07% of the delayed amount; the rule does not apply to pay for forced absence awarded under Article 48(9). The Labor Code does not list late payment as a separate ground for the employee to end the contract, but the daily charge keeps running until the amount is paid.

Frequently asked questions

How often must wages be paid in Georgia?

At least once a month (Article 41(3)). Weekly or bi-weekly is permitted but uncommon in Georgian SMB practice. Pay and the procedure for paying it are essential terms of the employment contract (Article 14(1)(f)), so write the payment date into the contract.

Does the wage calculation have to be in writing?

The Labor Code does not require a payslip. It does require a monthly working-time record shown to the employee (Article 24(11)) and, on request, an employment certificate that includes pay details (Article 14(2)). Issuing a payslip with gross, deductions and net — on paper or in an employee portal — is still the best way to document each payment.

Can I deduct from an employee's salary for damages?

Article 43 allows the employer to deduct overpayments and any other sum the employee owes it arising from the employment relationship, but a single deduction may not exceed 50% of the employee's pay. The debt itself must be real and documented — if the employee disputes that they owe the amount, a disputed deduction can end up in court.

In what currency must wages be paid?

Georgian Lari (GEL) is the default. USD or another currency is permitted if specified in the employment contract. Bank transfer is the most common method and provides the cleanest audit trail.

What happens if I pay wages late?

You owe the employee 0.07% of the delayed amount for each day of delay (Article 41(4)). The same daily charge applies to a late final settlement, which is due within 7 calendar days of termination (Article 44).

Can I pay employees in stock or equity instead of cash?

The Labor Code allows pay in money or in kind (Article 41(1)) and leaves the form and amount to the employment contract (Article 41(2)), so any non-cash element must be written into the contract. Cash or bank transfer is by far the cleanest approach; equity-only compensation arrangements are usually structured outside the employment relationship.