Georgia’s draft 2027 state budget raises the basic pension for people under 70 by GEL 20, to GEL 390 a month, and for those aged 70 and over by GEL 60, to GEL 555. Salaries of members of parliament, ministers and the President rise by 8% — an increase of GEL 1,080–1,350 a month, according to Netgazeti. This brief examines what the indexation rule delivers, how pensions compare with wages, and why percentage increases for top salaries attract criticism even when legally routine.
Key Points
- Under the draft 2027 budget, pensions for people under 70 rise 5.4% (GEL 370 → 390) and for those 70 and over 12.1% (GEL 495 → 555) (Netgazeti, 2026).
- The pension indexation rule introduced from 2021 requires pensions for under-70s to rise at least with inflation, with a floor of GEL 20 a year, and for 70-and-over pensions to rise with inflation plus 80% of real growth, with a floor of GEL 25 (Minister of Finance, cited by CBW, 2020).
- In June 2025 there were about 414,000 pensioners under 70 and 461,000 aged 70 and over (Social Service Agency, cited by FactCheck Georgia, 2025).
- At GEL 390, the under-70 pension equals about 16% of average monthly earnings at the end of 2025 (GEL 2,466); the 70-and-over pension equals about 23% (GILS calculation).
- The 8% rise for top officials translates into monthly increases roughly 54–68 times larger than the GEL 20 rise for a pensioner under 70 (GILS calculation from Netgazeti figures).
1. Context
Georgia’s basic state pension is a flat, universal payment financed from the state budget. It is the main income source for most older Georgians, and since 2019 it has been supplemented — for younger workers — by a funded, contributory pension scheme. The basic pension has risen substantially in nominal and real terms over the past decade: from GEL 110–125 in 2012 to GEL 350–450 in January 2025, a real increase of roughly GEL 95–138 at 2012 prices (FactCheck Georgia, 2025).
2. The 2027 Increase
| Year | Under 70 | 70 and over | Gap |
|---|---|---|---|
| 2021 | 240 | 275 | 35 |
| 2024 | 315 | 415 | 100 |
| 2025 | 350 | 450 | 100 |
| 2026 | 370 | 495 | 125 |
| 2027 (draft) | 390 | 555 | 165 |
Sources: Civil.ge (2021); FactCheck Georgia (2024, 2025); Parliament of Georgia (2025); Netgazeti (2026). Residents of highland settlements receive a 20% supplement. Gap column = GILS calculation.
The indexation rule explains the pattern. Pensions for those under 70 are protected against inflation but, in practice, have risen by close to the GEL 20 floor in recent years. Pensions for those aged 70 and over also share in real economic growth, and so rise faster in periods of strong growth. The gap between the two groups has grown from GEL 35 in 2021 (GEL 240 against GEL 275; Civil.ge, 2021) to GEL 165 in the 2027 draft (Netgazeti, 2026).
3. Analysis
How adequate is the pension?
Relative to wages, the basic pension is modest. At GEL 390, the 2027 under-70 pension is about 16% of average monthly earnings in the fourth quarter of 2025 (GEL 2,466.2, Geostat); at GEL 555, the 70-and-over pension is about 23% (GILS calculations). Because earnings have been growing at around 10% a year, a pension that rises by GEL 20 a year will fall further behind wages over time unless inflation and growth patterns change.
Why the officials’ increase is controversial
According to Netgazeti, salaries of MPs, ministers and the President rise by 8%, corresponding to increases of GEL 1,080–1,350 a month. Percentage increases are a normal way to index salaries. But when applied to high salaries alongside flat increases for pensions, they produce very different absolute outcomes: a single month’s increase for a senior official is equal to roughly three months of the full pension of someone under 70. This is a matter of distribution, not legality, and it is a legitimate subject of public debate.
Counter-argument: pensions have grown faster than official salaries
Supporters of current policy point out that pensions have risen far faster than inflation since 2012, and that the 70-and-over pension rises by 12.1% in 2027 — more than the 8% for officials. Both points are correct. The concern is less about the 70-and-over group than about the under-70 group, whose pension is tied closely to the GEL 20 floor and whose real value relative to wages is drifting downward.
4. Implications for Labour Policy
Pension adequacy is a labour market issue. Many Georgians under 70 continue to work after reaching pension age, often informally; the ILO finds that informal employment rises with age and reaches 40–50% among people in their fifties (Pignatti, 2026). A pension that falls behind wages increases pressure to keep working, often in insecure jobs. The funded pension introduced in 2019 will take decades to provide meaningful replacement income, and covers only formal employees.
GILS Recommendations
- Review the indexation rule for under-70 pensions so that it reflects wage growth as well as prices, preventing a long-term decline relative to earnings.
- Publish an annual pension adequacy report comparing pensions with wages, the subsistence minimum and poverty lines.
- Apply consistent principles to public pay indexation, including absolute caps on increases for the highest salaries in years when pensions rise only by the statutory floor.
- Extend funded pension coverage to self-employed and informal workers through voluntary schemes with state co-contributions.
GILS Position
Georgia’s pension has improved substantially in real terms. But an indexation rule that ties younger pensioners to a GEL 20 floor while earnings grow by around 10% a year will gradually erode the pension’s value. Indexation should be fair across groups — including between pensioners and the officials who set the budget.
References
- Netgazeti (2026). Pensions to rise by GEL 20–60, salaries of MPs and ministers by GEL 1,080–1,350 (in Georgian). netgazeti.ge
- Parliament of Georgia (2025). Draft State Budget 2026: Ministry of IDPs, Labour, Health and Social Protection funding to increase by GEL 800 million. parliament.ge
- FactCheck Georgia (2025). “Pensions have increased by just GEL 68 since 2012, adjusted for inflation.” factcheck.ge
- FactCheck Georgia (2024). “Pension was GEL 110 in 2012 and is now GEL 500.” factcheck.ge
- Civil.ge (2021). Pensions Rise, Indexation Introduced in 2021. civil.ge
- CBW (2020). Government Set Rule for Indexing Pensions. cbw.ge
- Geostat (2026). Average Monthly Nominal Earnings of Employees (IV Quarter, 2025). geostat.ge
- Pignatti, C. (2026). Recent Trends on Informal Employment in Georgia. ILO Working Paper 159. doi.org/10.54394/MOJI5185
Suggested citation: GILS Research Team (2026). 2027 Budget: Pensions and Officials’ Pay. GILS Brief. Editor: G. Pkhakadze. Georgian Institute of Labour Studies, Tbilisi. labour.edu.ge
GILS analyses are prepared with AI-assisted drafting. All figures and claims are verified against the cited primary sources and reviewed under the responsibility of the Editor.