Fines imposed on employers for failing to meet pension contribution obligations are set to be reduced to GEL 300 per violation, under proposed amendments to Georgia’s Law on Funded Pensions.
Currently, employers face a GEL 500 fine for a first violation and GEL 1,000 for a repeat violation. Under the draft legislation, the same GEL 300 penalty would apply to each identified violation.
The rules for imposing fines would also change. Employers would receive a 10-working-day grace period to identify and correct deficiencies. Notifications of Pension Fund decisions on fines would be sent through the Pension Fund and Revenue Service systems, as well as via SMS and potentially other electronic channels.
According to MP Paata Kvizhinadze, one of the bill’s authors, employers could also be allowed to pay fines in installments over 18 months under certain conditions.
