On 21 October 2022, the Georgian Trade Unions Confederation (GTUC) and the Georgian Employers’ Association (GEA) signed a memorandum of cooperation committing them to develop joint positions on labour legislation — explicitly including the minimum wage. Four years later, Georgia’s private-sector minimum wage is still GEL 20. This analysis examines what the memorandum set out to do, what bipartite dialogue on the minimum wage has produced, and why it has not yet delivered a result. (An earlier version of this page referred to a “joint statement” on the minimum wage that GILS could not verify; it has been corrected.)
Key Findings
- The GTUC–GEA memorandum of 21 October 2022 commits the two social partners to cooperation mechanisms on bringing labour legislation closer to European standards and to advocating joint positions on issues including collective relations, court disputes, minimum wage, working hours and 48-hour work regimes (GEA, 2022).
- GILS found no published joint GTUC–GEA proposal on the level or mechanism of a minimum wage since the memorandum.
- A 2017 FES-supported project had already evaluated minimum wage policy with input from employers and the state, with the aim of developing joint recommendations (FES, 2017).
- In February 2024 a parliamentary committee supported GTUC’s initiative to set the minimum wage at 40% of average earnings; it has not been enacted (Business Media Georgia, 2024).
1. Introduction
Minimum wages in most European countries are set through social dialogue: trade unions and employers negotiate, often with government, on criteria and levels. In Georgia, the private-sector minimum wage of GEL 20 has not changed since 1999 (see GILS analysis of the minimum wage). A bipartite agreement between the main union confederation and the main employers’ association could, in principle, break the deadlock. This analysis asks whether the 2022 memorandum has done so.
2. Background
The FES-supported 2017 project concluded that the minimum wage did not reflect changes in the average wage, that there was no mechanism to enforce minimum wage obligations, and that GEL 20 was far below the subsistence minimum (FES, 2017). GTUC proposed GEL 320 in 2019 (Business Media Georgia, 2019), and in October 2023 submitted an initiative linking the minimum wage to 40% of average earnings (Netgazeti, 2023).
3. The 2022 Memorandum
| Element | Content |
|---|---|
| Parties | Georgian Trade Unions Confederation; Georgian Employers’ Association |
| Purpose | Effective cooperation mechanisms to balance employers’ and employees’ interests while bringing legislation closer to European standards |
| Commitments | Social dialogue at workplaces; development of labour legislation; advocating joint positions before government |
| Topics named | Collective relations, court disputes, minimum wage, working hours, enterprises with 48-hour regimes |
Source: Georgian Employers’ Association (2022).
4. Discussion
Argument: a framework without an output
The memorandum identifies the right issues, and the inclusion of the minimum wage is significant: it signals that the main employers’ association accepts the minimum wage as a legitimate subject for joint work. But a memorandum is a framework, not an agreement. Without a published joint position — on a target level, criteria or a review mechanism — it has not changed the policy outcome.
Argument: bipartite dialogue needs a tripartite decision
Even a joint GTUC–GEA position would need government action through law or decree. The 2024 bill was referred to the Tripartite Commission, whose irregular functioning GILS has documented. Bipartite agreement is necessary but not sufficient; it needs a decision-making forum that meets and decides.
Counter-argument: employers’ caution is legitimate
Employers have legitimate concerns: a sudden large increase could push work into informality in an economy where more than a third of jobs are informal. A memorandum that commits to dialogue rather than a figure may reflect realistic caution. The solution is a phased, evidence-based approach — which the social partners are well placed to design jointly.
The representativeness question
Independent unions outside GTUC, such as the New Confederation of Independent Unions founded in 2020 (Publika, n.d.), are not members of the Tripartite Commission. Broader participation could strengthen the legitimacy of any eventual agreement.
5. Conclusion
The 2022 memorandum shows that Georgia’s main social partners are willing to discuss the minimum wage together. Four years on, that willingness has not produced a joint proposal or a policy change. The next step is concrete: a joint GTUC–GEA position on criteria and phasing, submitted to a Tripartite Commission with a deadline to decide.
GILS Recommendations
- Publish a joint GTUC–GEA position on minimum wage criteria, phasing and review, building on the 2022 memorandum.
- Set a deadline for the Tripartite Commission to decide on the 2024 minimum wage bill.
- Commission an independent impact study to inform the starting level and phasing.
- Broaden consultation to include independent unions and sectoral organisations.
GILS Position
Social dialogue is the right route to a minimum wage. It must now produce a result. GILS calls on the social partners to turn their 2022 commitment into a concrete joint proposal.
References
- Business Media Georgia (2024). Health Committee supports trade unions’ minimum wage initiative [in Georgian]. 20 February 2024. bm.ge
- Netgazeti (2023). Minimum wage of GEL 636 — trade unions appeal to Parliament [in Georgian]. 6 October 2023. netgazeti.ge
- Business Media Georgia (2019). Trade unions’ bill: minimum wage should be GEL 320 [in Georgian]. bm.ge
- Publika (n.d.). Two years since the historic strike [in Georgian]. publika.ge
- Georgian Employers’ Association (2022). A memorandum of cooperation was signed between the Union of Professional Unions of Georgia and the Association of Employers of Georgia. 21 October 2022. employer.ge
- Friedrich-Ebert-Stiftung (2017). Project Summary: Minimum Wage. fes.de
- GTUC (n.d.). Meeting held regarding the need to establish a decent minimum wage standard in Georgia. gtuc.ge
Suggested citation: GILS Research Team (2026). The GTUC–GEA Memorandum and the Minimum Wage. 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.