Georgia’s Pension Agency says reforms introduced in 2025 have significantly improved compliance and increased contributions to the country’s funded pension system. Under the new framework, employers submit pension contributions and income tax payments through a single declaration process.
According to Acting Director General Giorgi Chichinadze, the reform has simplified administrative procedures for businesses and led to stronger payment discipline. He said 92% of companies fully met their pension contribution obligations in 2025, while 78% of identified violations have already been resolved.
Chichinadze noted that pension contributions increased by GEL 140 million compared with 2024. He added that non-compliance rates have fallen sharply, with only about 8% of payers currently failing to meet their obligations, compared with several dozen percentage points in previous years when tens of thousands of companies were not fully complying.
Despite the improvement, businesses still owe tens of millions of lari in outstanding pension contributions accumulated over previous years. Chichinadze said historical arrears had reached hundreds of millions of lari, although GEL 70 million was recovered in 2025. According to Finance Ministry data, penalties related to non-compliance generated more than GEL 2 million in budget revenue during the first four months of 2026, following GEL 3.75 million collected in fines during 2025.
