Georgia intends to index pensions based on inflation, economic growth

Georgia intends to begin indexing pensions to inflation and economic growth, says Georgian Finance Minister Ivane Matchavariani earlier today.

An increase in pensions for people less than 70 years old will be adjusted based on the inflation rate, while an increase of pensions for people above 70 will be adjusted based on 80 per cent of economic growth as well as the inflation rate,” said Matchavariani.

Meanwhile, Matchavariani noted that pensions of people less than 70 years old will increase by minimum 20 GEL ($6.2/€5.7) in a year, while for people above 70 years it will increase by minimum 25 GEL ($7.8/€7.2). That will be the case in a situation if the increase of indexed pensions is less than this minimum amount.

In addition Georgia will increase pensions for people above 70 years by 30 GEL ($9.4/€8.6) starting July 1, 2020.

• Pensions, disability payments and teachers’ salaries expecting significant increase

Despite the fact that our budget is facing a significant challenge today, we have not rejected this initiative, as we think that in this context, [an increase of pensions] is even more important,” said Matchavariani.

Georgia has already increased pensions of all pensioners by 20 GEL on January 1, 2020.