Taking your company to a new country comes with extensive planning, including designing a benefits package. With market research and an understanding of labor laws, you can design a plan that draws in new employees and facilitates your company’s plans for global growth.
Georgia employee benefits plan
Employee benefits can be a valuable tool for your company. When you begin recruiting, these provisions can persuade job seekers to apply for your vacancies, helping you build your international team. On the job, these benefits can improve morale and increase retention rates. Higher retention can help you save on onboarding expenses and create an experienced team.
Potential benefits include:
- Private health insurance
- Holiday bonuses
- Company cars
- Travel allowances
Mandatory benefits in Georgia
While fringe benefits can help with recruitment and retention, other provisions are essential to your company’s compliance. The labor code requires employers to provide:
- Pension contributions
- Paid maternity leave
- Annual leave
- Time off for public holidays
Designing Georgia employee benefits plans
The design process is vital to your final benefits plan. Working through the right steps will ensure you create a plan that addresses your needs and acknowledges your employees’ needs.
1. Evaluate your finances
Benefits will require spending on your company’s behalf, so it’s vital to understand your financial situation. Take time to look into your revenue and existing expenses to find out how benefits spending will fit into your overall finances.
2. Research the market
To be competitive in the labor market, your company needs to understand what other employers commonly offer. Research local businesses to look for patterns and identify which benefits may be a smart move for your enterprise.
3. Choose benefits
With your research complete, you can choose benefits that fit your budget. Supply funding to the required benefits first, then use your remaining resources for optional provisions.
Average cost of benefits
Every employer pays a different amount for benefits, which can skew the overall market average. Factors such as size, industry, and location can influence how much an employer is willing to spend on provisions.
Establishing a budget is the best way to control your benefits expenses. You might create this budget by setting a percentage of your revenue aside. This method ensures your budget automatically scales with your company. As your revenue grows, you’ll have more to spend on employee provisions.
How to calculate employee benefits
The process of calculating benefits will vary depending on the provision at hand. Many benefits come with simple calculations, such as allowances and bonuses. You can determine an amount to offer and distribute it accordingly.
Other calculations, such as pension contributions, are more complex. Employers and employees pay contributions based on a percentage of employee income. Both parties pay 2 percent of employee earnings.
How are employee benefits taxed in Georgia?
Tax law declares specific benefits as income, and they should be included in the employer’s calculations for income tax. These benefits include:
- Accommodation expenses that exceed ministry standards
- Company cars
- Loans with interest rates below the market average
- Goods or services transferred from employers to employees free of charge
- Education assistance
- Life and health insurance
Employee health benefits
Georgia has a universal healthcare system in place, so employers are not obligated to provide any health coverage. Employers may offer private health insurance schemes as an optional fringe benefit.
How Globalization Partners can help scale your team in Georgia
Globalization Partners’ global employment platform helps you build and scale an international team quickly and easily, ensuring all benefits offered to candidates are compliant and in line with local regulations. Learn more about our platform and request a proposal today.