Impact of Possible Growth of Minimum Wage in Georgia

Most of developed as well as developing countries regulate the Minimum Wage by law. The Minimum Wage for countries vary and all serve some degree of income protection for workers, prohibit competition based on “unfair” labor usage/exploitation and supports the idea of decent pay for work.

Setting proper Minimum Wage is a challenge, as each country should maintain a balance in the economy: make it high enough to ensure standard of life of its workers as well as not to increase too much to undermine capacity of the economy.  20 GEL ($8), the current monthly Minimum Wage in Georgia, is too low and outdated. Since its introduction in 1999, it has never been adjusted to changing consumer prices (inflation), wages (increase in average monthly earning), or the standard of living in Georgia. The Subsistence Minimum, pension for elderly and all other social benefits in Georgia are much higher than the current Minimum Wage.

Davit Darsavelidze, Friderich-Ebert-Stiftung

Tbilisi, 2019

Friedrich-Ebert-Stiftung South Caucasus Office

Georgia Office
N. Ramishvili str.  I Dead End, Bldg. 1, Ap. 7
0179, Tbilisi
+995 32 225 07 28
+995 32 222 67 26

Armenia Office
Moskovyan str. 31, 76/1
0002, Yerevan
+374 10 53 69 13
+374 10 53 26 97

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