Georgia takes  the last place in Europe in terms of minimum wage

Georgia takes the last place in Europe in terms of minimum wage

access_time2019-11-11 12:50:24

In terms of levers of minimum wage, Georgia takes  last place in Europe and the penultimate in the world, lagging behind all countries, including the poorest.

However, this can be considered a formality, which doesn’t  reflect the real situation- the minimum wage threshold was adopted in the mid-90s and has not yet been revised. It makes  now GEL 20 per month though  such a salary has not been paid for a long time.

However, Georgia’s real wages are quite low, although much higher than GEL 20 per month.

According to the Trade Unions, about 23,000 people earn up to GEL 100 per month, 6,300 people - up to GEL 200.

The highest and stable salaries are in the public sector and large business, however, still they are not enough amid  rapid growth in prices for almost all goods.

Due to the social situation in the country, the Trade Unions proposed the government  to review the minimum official salary to make it more or less realistic, at least GEL 320  per month.

The relevant bill has already been submitted to Parliament.

The Trade Unions are confident that approximately 130,000 people who currently have very low salaries will feel the benefits of the new law as employers will be forced to pay them more.

The parliamentary majority, who agree that 20 GEL is too little even for Georgia, also says that the minimum should be increased. The ruling party believe the initiative is acceptable but needs to be discussed more detailed.

 The opposition says that in the current situation  a revision of the minimum wage will not bring any results but will  increase the share of the shadow economy noting that this problem should be solved through  boosting  economic growth and improving the social status of citizens.


Similar News