Georgia’s state pension to increase 12.5 percent in 2016
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Hundreds of thousands of Georgia’s oldest residents will have their pensions increased by 12.5 percent next year following the Government’s pledge to allocate more than 600 million GEL for Georgia’s retired community.
From July 2016 the state pension will increase 20 GEL to a monthly total of 180 GEL. The pension is available to women aged 60 and older and men aged over 65.
This decision was made at today’s Governmental meeting, where the Government members discussed how to divide next year’s state budget.
The 2016 year’s budget will be oriented on social needs. It will focus on increasing pensions and teachers’ salaries,” Prime Minister Irakli Garibashvili said at the meeting.
At the same time the budget plan will include supporting high-mountain regions and other related events,” he said.
It is understood the 12.5 percent pension increase would be higher than predicted inflation. As of November 4, 2015 annual inflation was 5.8 percent, claimed the National Statistics Office, Geostat.
PM Garibashvili added the Government was also working on a pension reform and looking to launch an accumulative pension system.
First of all what we decided is to increase state pensions from July 2016. The pension will become 180 GEL. The pension has increased by 64 percent since 2012. Next year we will allocate more than 600 million GEL for retired people,” said Garibashvili.
Meanwhile the state pension increased in September 2015 by 10 GEL, lifting it up to 160 GEL.
There are about 703,000 pensioners registered in Georgia.
Georgia’s monthly inflation rate is slightly dropping while the annual inflation rate is on the rise following price changes to several major commodities in the consumer basket.
The basic state pension is set to rise by 10 GEL in September next year for hundreds of thousands of Georgia’s oldest residents, lifting it from 150 GEL to 160 Gel.
The Government of Georgia believes next year’s budget has a clear "social orientation” that focuses on the social needs of citizens.
The pension is increasing for retired citizens living in Georgia’s high mountain areas.
Georgia’s pension reform will benefit the elderly and economy
The pension reform will see Georgia’s pensioners receive money based on a model of private pension accumulation instead of the existing social pension package.
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.
New scheme improves lives of Georgia’s pensioners
The Government of Georgia is taking action to improve the lives of its retired population and help them get the best out of their later lives.
The Government of Georgia plans to launch a new type of pension system known as the accumulated pension program starting from the next year.