Georgia has introduced significant amendments to its Law on Funded Pensions, strengthening compliance requirements and revising administrative penalties and enforcement procedures. The changes, effective from 18 September 2026, are particularly relevant for employers, payroll teams and accounting professionals.
Key Changes for Employers:
Administrative penalties and correction periods
The revised framework introduces a GEL 300 administrative fine and a mechanism allowing certain violations to be corrected after a penalty is imposed. Subject to statutory conditions, employers may have the fine cancelled by paying outstanding pension contributions and associated lost investment returns within 10 business days of the fine being imposed.
Appeals and electronic notifications
The general appeal period for Pension Fund decisions is 30 calendar days.An appeal suspends enforcement while the decision is reviewed, but the accrual of lost investment returns continues. Employers should regularly monitor the Pension Fund and Revenue Service electronic systems to avoid missing notifications and deadlines.
Relief from existing fines
Eligible employers may obtain relief from certain administrative fines imposed before 18 September 2026 for pension obligations arising after 1 May 2025. To qualify, outstanding pension contributions and associated lost investment returns must be paid in full by 31 December 2026..
From 1 June 2027, eligible employers may also request instalment arrangements for outstanding liabilities, subject to the applicable requirements and an agreement with the relevant authority.
The amendments do not themselves change the standard contribution rates, which generally remain 2% from the employee and 2% from the employer, with a government contribution subject to statutory conditions.
Eurofast’s Take
Eurofast’s Georgia can help employers reconcile payroll records, prepare pension declarations, check eligibility for relief from historical fines and settle outstanding liabilities before the 31 December 2026 deadline We can also review internal payroll compliance controls to reduce the risk of future penalties under the amended rules.
Your contact for further queries is:
Irina Lopatina