In July 2023, the National Statistics Office of Georgia reported an updated subsistence minimum of 249.8 GEL, which showed a decrease of 4.7 GEL compared to the previous month’s 254.5 GEL in June. This change also marked a 4.5 GEL lessen in the annual plan for the subsistence allowance.
The correlation between living costs and inflation is evident, as the subsistence index tends to follow inflation trends. July 2023 saw an inflation rate of 0.3% in Georgia.
Since 1997, Georgia has used a specific methodology to compute the subsistence minimum, which remains in place to this day. Enacted by the Parliament, this law’s primary objective is to establish a social benchmark. This benchmark sets the baseline for minimum wages, pensions, scholarships, allowances, and various other social benefits, making it a crucial factor with significant political and social ramifications in the country.
The computation of the subsistence allowance relies on a specialized food basket introduced through a minister of health order on May 8, 2003. Notably, this calculation is centered exclusively around food costs and excludes other essential expenses like utilities and transportation. Today’s system is based solely on the cost of food.
By Mariam Gorkhelashvili
