Since January 1, 2019, Georgia has implemented a mandatory funded pension scheme for employees under the age of 60. This program is designed to help individuals build additional retirement savings.
Key Features of the Pension Program
Mandatory Participation: All employees under the age of 60 are required to participate in the scheme. Employees aged 60 and above may opt into the program voluntarily.
Contribution Structure: The total contribution to the pension fund is divided as follows:
Employee: 2% of gross monthly salary
Employer: 2% of gross monthly salary
State: The state contributes 2% if the employee's annual income is up to GEL 24,000, 1% for income between GEL 24,000 and GEL 60,000, and 0% for income exceeding GEL 60,000.
Contribution Deadline: Employers are required to declare and transfer contributions to individual pension accounts within 5 working days after the salary payment date.
Retirement Age: Pension funds become accessible upon reaching the statutory retirement age, which is 65 for men and 60 for women.