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Working Poverty in Georgia

Persons in employment whose household income falls below the poverty threshold — measuring whether work pays enough to escape poverty. Data from Geostat Labour Force Survey and ILOSTAT. Updated quarterly.

Geostat LFSILOSTATQ1 2026
~24%Working Poor RateBelow national poverty line 2024
~GEL 940/moRural Formal Avg WageAgriculture sector
GEL 300State Pension (first pillar)Many elderly supplement wages
~37%Informal EmploymentExcludes social protections
Data
Key Indicators
Indicator / SegmentValueNotes
National poverty line (2024)GEL 253/month per capitaGeostat national poverty line
Working poor (below poverty line)~24% of employedGeostat 2024 Welfare Monitoring
Extreme working poor (below food poverty)~8% of employedGeostat 2024
Rural working poor~38% of rural employedAgriculture-driven
Urban working poor (ex-Tbilisi)~19% of employedRegional cities
Tbilisi working poor~9% of employedFormal economy buffered

Source: Geostat Labour Force Survey; ILOSTAT. All figures refer to latest available period unless stated.

Analysis
Policy Context

Working poverty in Georgia is driven by three structural factors: the large informal agricultural sector (where earnings are non-monetary or very low in cash), the absence of a meaningful minimum wage, and the inadequacy of social transfers for working-age adults. The GEL 20 nominal minimum wage is economically irrelevant, leaving the market to set the floor — which in agriculture and domestic work is well below subsistence. See Living Wage Tool → and Informal Economy →

See Also
Related Tools and Pages

Living Wage Georgia →  ·  Salary Checker Georgia →  ·  Informal Economy Georgia →  ·  Law Employment Assistance →

Geostat LFS · ILOSTAT · Labour Market Observatory →
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GILS Analysis
Working but Poor: Georgia's In-Work Poverty Trap

Georgia's working poverty rate — defined as employed persons living in households below 60% of median income — stands at approximately 21.3% (World Bank 2023 estimate, using GEL 595 poverty threshold). This means one in five employed Georgians is in poverty despite working. Working poverty is not a paradox: it is the direct result of low wages in agriculture and subsistence self-employment, combined with the absence of a meaningful minimum wage floor.

Agricultural subsistence employment is the dominant driver. Geostat classifies approximately 360,000 people as "self-employed in agriculture" — effectively subsistence farmers earning GEL 100-200/month equivalent. These workers count as employed in official statistics but are income-poor. Removing them from the calculation would dramatically change Georgia's "employment" and "working poverty" picture.

Formal sector protection: Workers in formal wage employment (approximately 750,000 individuals) have much lower working poverty rates — an estimated 8.4% for formal private sector workers and 6.2% for public sector workers. The working poverty problem is concentrated in the informal and self-employment segments.
Minimum wage failure: The GEL 20 statutory minimum wage (unchanged since 1999) provides zero protection against working poverty. At GEL 20/month it is below even the most basic subsistence needs. A meaningful minimum wage of GEL 500-600/month — covering the subsistence minimum — would directly reduce working poverty for an estimated 180,000 workers.
International Perspectives
What Other Institutions Say
World Bank Poverty Team
Working poverty in Georgia is structurally driven by the large subsistence agriculture sector. Standard poverty-reduction interventions (cash transfers, minimum wage) have limited reach in this segment because workers are not formally employed. Rural development — commercialising agriculture, creating non-farm rural jobs — is the primary poverty-reduction lever for this group. (WB Georgia Poverty Assessment 2023)
ILO Decent Work Agenda
Working poverty is the antithesis of Decent Work. ILO's four pillars of Decent Work — employment, rights, social protection, and social dialogue — all apply to working poor Georgians. The specific failure: no minimum wage protection, inadequate social assistance that discourages formal work, and lack of collective bargaining outside a few large employers. (ILO DWCP Georgia 2023-2026)
UNICEF Georgia
Child poverty and parental working poverty are closely linked. 42% of children in poverty have at least one employed parent — their employment does not lift the household above poverty because wages are too low and the TSA benefit trap discourages additional income-seeking. The child poverty rate (28%) will not fall without addressing parental working poverty simultaneously. (UNICEF Child Poverty Georgia 2023)
Oxfam Tbilisi
Georgia's inequality (Gini: 0.37) means that even aggregate wage growth does not reach the lowest earners proportionately. The bottom 20% of wage earners have seen real wage growth of only 1.2% per year since 2016 vs. 6.8% average — the gains are highly concentrated. Progressive wage policy (minimum wage, compression of public sector wages) is essential. (Oxfam Georgia Inequality Report 2023)
GILS Position Statement

Working poverty in Georgia will not be solved by employment creation alone — many working poor Georgians already have employment. The solution requires three simultaneous interventions: (1) a meaningful minimum wage that provides a real floor; (2) an in-work benefit that ensures formal work always pays more than inactivity; (3) agricultural transformation that moves subsistence farmers into productive, income-generating employment or enterprise. GILS considers the GEL 20 minimum wage the single most egregious failure of Georgian labour policy — it has been unchanged for 25 years and provides no real protection to any worker.

— GILS Research Position on Working Poverty, September 2026
GILS Policy Recommendations
Five Targeted Interventions to Reduce Working Poverty
Recommendation 01
Immediate minimum wage: GEL 500/month from January 2025

Current GEL 20 minimum wage provides zero real protection. Set GEL 500 from January 2025; GEL 650 from January 2026; GEL 750 from January 2027 — indexed to annual subsistence minimum review. Tripartite Low Pay Commission advises on levels. Impact: direct protection for estimated 180,000 formal workers currently below GEL 500/month. Net cost to employers: modest (most already pay above floor; floor removes floor-racing in low-margin sectors).

Germany (min wage commission + phased increase) · UK (National Living Wage) · Poland (minimum wage doubling 2020-2023)
Recommendation 02
In-work benefit — make formal work pay

TSA recipients who take formal employment lose benefits sharply — removing the incentive to formalise. Introduce earnings disregard: first GEL 300 of formal earnings excluded from TSA means test for 24 months; above GEL 300, 50p taper (GEL 0.50 TSA reduction per GEL 1.00 earnings above threshold). Eliminates poverty trap. Cost: GEL 45M/year — offset by reduced long-run TSA dependency.

UK (Working Tax Credit) · Germany (Freibetrag ALG II) · Estonia (in-work benefit)
Recommendation 03
Agricultural minimum income guarantee

360,000 subsistence farmers below poverty threshold despite being classified as employed. Introduce Agricultural Minimum Income Guarantee (AMIG): GEL 300/month for registered small farmers (holding <5 ha, no other formal income). Conditional on: farm registration with MoA, agricultural activity declaration, ESDC registration for non-farm work offers. Cost: GEL 650M/year — requires EU ENPARD co-finance negotiation.

France (RSA — guaranteed minimum income) · Portugal (RSI) · Georgia EU ENPARD rural development funds
Recommendation 04
Sector living wage — hospitality and retail

Hospitality and retail are the largest private sector working poverty concentrations. Establish sector-specific living wage: GEL 700/month for hospitality (hotels, restaurants, tourism services) and GEL 750/month for retail. Enforced by LIS. Employers above threshold receive 'Living Wage Employer' GILS certification. Target: 60,000 workers lifted above poverty threshold.

UK Living Wage Foundation (sector campaigns) · South Africa (hospitality sectoral determination) · Georgia LIS enforcement capacity
Recommendation 05
Child poverty premium — TSA enhancement for families

42% of children in poverty have an employed parent. Introduce an employment premium on TSA child supplement: families with employed adults receive GEL 100/child/month supplement above standard TSA child rate (GEL 50), making total child supplement GEL 150/month. This incentivises formal employment for TSA families with children and directly reduces child poverty.

UK (Working Tax Credit child element) · Poland (Family 500+ programme) · Hungary (family benefit for employed parents)
ILO Standards — Georgia
International Compliance Status
ILO ConventionSubjectRatifiedComplianceKey Gap
C131Minimum Wage Fixing Not ratifiedn/aGEL 20 minimum wage — effectively zero; no consultation mechanism
C102Social Security (Minimum Standards) Not ratifiedn/aNo unemployment insurance; TSA below subsistence minimum
C117Social Policy (Basic Aims and Standards) Not ratifiedn/aNo national social policy framework with minimum standards