Opposition urges gov’t to temporarily suspend mandatory pension contribution
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The European Georgia opposition party has urged the government to suspend mandatory pension contributions for eight months due to the situation created by Covid-19 virus.
The opposition believes that the temporary suspension will help the state and the people to partly cope with financial challenges sparked by the respiratory infection.
With the temporary suspension the state will spare 133 million GEL which can be spent for healthcare. The entrepreneurs and employers will not have to pay 83 million GEL which will help them to maintain staff, while the employees will have 108 million GEL they will be able to use for covering their expenses,” European Georgia says.
Georgia launched the new pension system at the beginning of last year.
Starting from January 1, 2019 the accumulated pension system was made mandatory for legally employed people under 40, meaning they are enrolled automatically. For the self-employed and those above the age of 40, enrolment in the programme is voluntary.
The system works on a 2+2+2 scheme.
Each employee, employer and the government make a contribution of 2% of the gross volume of the employee’s income to an individual retirement account. As for the self-employed, they make a deposit of 4% of their income, and the state matches another two per cent.
Pension and social packages have increased starting from today. 114,000 people with disabilities and pensioners will receive the increased social package by 20 GEL [$6.18].
This month, the employed in Georgia will transfer money to the country’s pension savings system for the first time, as it was launched on January 1, 2019. Starting from January 1, 2019 the accumulated pension system is mandatory for legally employed people under 40, meaning they will be enrolled automatically.
About 35,000 people in Georgia will receive increases pension from today following the Government’s pledge to allocate an additional 90 million GEL y/y for Georgia’s retired community and disabled persons.
Georgian National Disease Control Centre (NDCD) says that one Czech and one Slovak who traveled in Georgia between March 4 and 9 in a six-member tourist group have recently tested positive for Covid-19 in their countries, and have informed the Georgian NCDC of their status, which ‘shows their high sense of responsibility.’ The NCDC says that while in Georgia the tourists had no symptoms and did not call doctors.
The Georgian government has announced a temporary, two-week closure of its borders for all foreign citizens, with exceptions, to avoid the further spread of the Covid-19 virus. The ban will come into effect starting March 18, at 00:00. The government says that Georgian citizens [and their family members] who want to come back to the country will be able to use the flights of Georgian Airways or Turkish Airlines.
One individual who had contact with three people who were recently infected has tested positive for the COVID-19 virus, director of Tbilisi Hospital of Infectious Diseases Marina Ezugbaia stated earlier today. The condition of the new patient is not severe, Ezugbaia said. Since February 26, 2020 Georgia has had 34 confirmed cases of the China-born respiratory infection, with one recovered and discharged yesterday.
Georgia intends to begin indexing pensions to inflation and economic growth, says Georgian Finance Minister Ivane Matchavariani earlier today.
People above 70 years will receive an increased pension starting July 1, 2020, with monthly pensions increasing by 30 GEL ($9.84/€8.63) to 250 GEL ($81.97/€71.95).
Georgian citizens above 70 years will receive an increased pension starting today with monthly pensions increasing by 30 GEL ($9.8/€8.8) to 250 GEL ($81.8/€72.9), announces the Ministry of Health, Labour and Social Affairs of Georgia.
Pensions have increased in Georgia starting January 1, 2021, says the Ministry of Health, Labour and Social Affairs of Georgia.
Georgia is the cheapest retirement destination in Europe in 2021, followed by its neighbours Russia and Ukraine, says a new study published by a Chicago-based online lender NetCredit. NetCredit calculated that a retirement cost in Georgia totals $215,911 – 'just over one-third of the US price'.