The ruling Georgian Dream party has announced an amnesty on accrued and unpaid penalties for failure to pay contributions to the Pension Fund. The fines will be waived for companies provided they settle their arrears before the end of the year.
The measure is envisioned in a package of legislative amendments to the Law on Funded Pensions. While the bill has not yet been officially published, according to Parliamentary Speaker Shalva Papuashvili, it introduces five key changes:
- “An amnesty on unpaid fines is being declared: 13,500 employers will have fines totaling 43 million GEL written off, on condition that their pension arrears and accrued income are paid in full by the end of 2026.
- Sanctions are being reduced: instead of the previous 500 and 1,000 GEL for initial and repeat violations, the fine will be set at 300 GEL.
- A dispute resolution service will be established within the Pension Fund structure, enabling out-of-court settlement of claims.
- An option for phased payment of pension contributions and accrued investment income will be introduced for a period of up to 18 months.
- The procedure for serving and appealing penalty notices is being clarified. If the contribution is transferred within 10 days, the fine will be annulled, and if an appeal is filed, enforcement proceedings will be stayed.”
“We have decided to initiate a draft law granting an amnesty on penalties. Accordingly, out of the five baseline points, the primary issue concerns precisely the annulment of sanctions that have not yet been settled. This measure will affect approximately 13,500 employers and total 43 million GEL. Fines will be written off provided employers clear their pension arrears and accrued late fees before the end of this year,” Papuashvili stated.