Guide · 2 min read · Updated 4 October 2026
Salary after tax in Georgia: how take-home pay is calculated
In Georgia two things come off a salary: the 2% pension contribution and the flat 20% income tax. The order matters, and it’s why the usual “minus 22%” shortcut is slightly wrong. Here’s exactly how it works, with ready-made numbers and a salary calculator for your own amount.
The formula
If you’re in the funded pension scheme, 2% of the gross salary goes to your pension account first. Income tax of 20% is then charged on what’s left — not on the full gross. So the take-home pay is:
Net = gross × 0.98 × 0.80 = gross × 0.784 — you keep 78.4%. Without the pension contribution it’s simply gross × 0.80.
On a 3,000 ₾ salary: 2% pension is 60 ₾; 20% tax on the remaining 2,940 ₾ is 588 ₾; you take home 2,352 ₾. The employer pays its own 2% (another 60 ₾) on top, which doesn’t come out of your salary.
Gross to net: a quick table
Monthly amounts in lari for an employee who pays into the pension scheme, and for one who doesn’t.
| Gross | Pension 2% | Income tax 20% | Net (with pension) | Net (no pension) |
|---|---|---|---|---|
| 1,000 | 20.00 | 196.00 | 784.00 | 800.00 |
| 1,500 | 30.00 | 294.00 | 1,176.00 | 1,200.00 |
| 2,000 | 40.00 | 392.00 | 1,568.00 | 1,600.00 |
| 2,500 | 50.00 | 490.00 | 1,960.00 | 2,000.00 |
| 3,000 | 60.00 | 588.00 | 2,352.00 | 2,400.00 |
| 4,000 | 80.00 | 784.00 | 3,136.00 | 3,200.00 |
| 5,000 | 100.00 | 980.00 | 3,920.00 | 4,000.00 |
| 7,000 | 140.00 | 1,372.00 | 5,488.00 | 5,600.00 |
| 10,000 | 200.00 | 1,960.00 | 7,840.00 | 8,000.00 |
Net to gross: what to ask for
Job offers in Georgia are often discussed “on hand” (ხელზე). To turn a take-home figure into the gross salary, divide instead of multiply:
- With the pension: gross = net ÷ 0.784. To take home 2,000 ₾ you need about 2,551 ₾ gross.
- Without the pension: gross = net ÷ 0.8. 2,000 ₾ on hand is 2,500 ₾ gross.
Agree in writing whether a number is gross or net — the difference on a 3,000 ₾ salary is almost 650 ₾ a month.
Who pays the 2% pension?
The funded (accumulative) pension started on 1 January 2019. It’s compulsory for employees who were under 40 at that time, and optional for those who were older. Foreign citizens don’t take part. Each month three contributions go into your personal pension account:
- 2% from you (deducted from the gross, before income tax)
- 2% from your employer (on top of your gross salary)
- up to 2% from the state, depending on your annual income
So on a 3,000 ₾ salary, at least 120 ₾ a month is saved in your name, plus the state’s share.
What this guide doesn’t cover
These are the standard rates for employees. Some people pay less income tax — for example residents of high-mountain settlements and people with certain disabilities have reduced rates or exemptions, and individual entrepreneurs with small-business status pay a percentage of turnover instead. For your exact situation, check with the Revenue Service (rs.ge) or an accountant.
Frequently asked questions
Is income tax in Georgia 20% or 22%?
Income tax is a flat 20%. The extra 2% people mention is the pension contribution, which is taken first, so together they take 21.6% of the gross, not 22%.
Is the 2% pension a tax?
No. It goes into your own pension account and stays yours, along with the employer’s and the state’s contributions.
How much does a 3,000 ₾ salary cost the employer?
3,060 ₾: the gross salary plus the employer’s 2% pension contribution.