Supporting the formalization of Workers and Enterprises through an integrated and gender-responsive National Strategy

The project aims to strengthen Georgia's ability to formalize the economy by developing and implementing a National Integrated and Gender-Responsive Formalization Strategy (NFS) and establishing a Coordination Mechanism to ensure consistent policy implementation across national and local levels.

Project details

1 June 2024 - 31 May 2026

600,000 USD

RBSA

GEO/24/01/RBS

Maria José Chamorro, Formalization and Gender Equality Specialist through budapest@ilo.org

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ILO will support Georgia in tackling informality through various interventions.  Specifically, the ILO will support a comprehensive diagnosis of informality, building the knowledge base for the development of a gender-responsive strategy, developing a National Integrated and Gender-responsive Formalization Strategy (NFS), and monitoring implementation, building the capacity of the social partners to engage in the process and articulate their positions. Within the project, a proposal to combine enterprise formalization and social protection extension will be elaborated by developing a proposal to consolidate the existing multiple tax exception regimes for entrepreneurs and micro businesses. The ILO will support the creation of tangible initiatives such as sector-specific campaigns, support services, formalization packages, skilling and re-skilling of informal workers, training, and incentives targeting one prioritized sector. 

The direct beneficiaries include employers’ and workers’ organizations and public institutions.  A number of enterprises will receive direct support through the pilot initiatives. The final beneficiaries of all the activities will be workers in the informal economy and owners of informal economic units.  

The key partners will be the Ministry of Internally Displaced Persons, Health, Labour and Social Services (MoIDPLHSA), Ministry of Finance, Ministry of Economy and Sustainable Development, Enterprises Georgia, Social Service Agency, National Statistical Office, the National Skills Agency of Georgia, the Georgian Employers’ Association (GEA) and the Georgian Trade Union Confederation (GTUC).