This analysis was first published by the Georgian Institute of Labour Studies (GILS), an initiative of the Public Health Institute of Georgia. Read the original on labour.edu.ge →
Low pay shapes nutrition, housing and access to care. Georgia's private-sector minimum wage — GEL 20 a month, set in 1999 and never revised — is far below average earnings. This analysis examines the gap and the debate about reform.
Georgia’s minimum wage for the private sector is GEL 20 a month, set by presidential order in 1999 and never revised. It is equal to less than 1% of average monthly earnings and less than a tenth of the subsistence minimum. Three proposals to replace it have reached Parliament since 2019; none has become law. This analysis sets out the numbers, the history of failed reform, and the case for a minimum wage set through a transparent, evidence-based mechanism.
Key Findings
- The private-sector minimum wage is GEL 20 per month under Presidential Order No. 351 of 4 June 1999; the public-sector minimum is GEL 115 (Employsome, 2026).
- GEL 20 equals 0.8% of average monthly earnings in Q4 2025 (GEL 2,466.2) and 8% of the 2024 subsistence minimum for a working-age man (GEL 249.7) (GILS calculations from Geostat data).
- Proposals to replace GEL 20 — GTUC’s GEL 320 initiative (2019), a bill setting the minimum at 45% of average earnings rejected in committee in September 2020, and GTUC’s October 2023 bill for 40% of average earnings (GEL 636 on 2022 data) — have not become law (Business Media Georgia, 2019; OC Media, 2020; Netgazeti, 2023).
- On 19 February 2024, Parliament’s Health Care and Social Issues Committee supported the GTUC initiative (Business Media Georgia, 2024). It had not been enacted as of 2026 (Employsome, 2026).
1. Introduction
A minimum wage sets a floor beneath which pay may not fall. Most European countries review theirs regularly through a legal mechanism involving social partners. Georgia’s minimum wage was set by presidential order in 1999 and has not changed in more than a quarter of a century. In practice, Georgia has no functioning minimum wage for the private sector.
This analysis asks how far the current minimum is from relevant benchmarks, why reform has failed, and what a credible reform would look like. Our thesis is that the obstacle is not technical — the data and models exist — but institutional: the absence of a legal mechanism and of an effective forum for decision.
2. The Gap in Numbers
| Benchmark | GEL per month | GEL 20 as % of benchmark |
|---|---|---|
| Statutory private-sector minimum (1999) | 20 | — |
| Subsistence minimum, working-age man (2024) | 249.7 | 8.0% |
| GTUC 2024 proposal (40% of 2022 average) | 636 | 3.1% |
| 40% of average earnings, Q4 2025 | 986 | 2.0% |
| 50% of average earnings, Q4 2025 (EU directive reference value) | 1,233 | 1.6% |
| Average monthly earnings, Q4 2025 | 2,466.2 | 0.8% |
Sources: Presidential Order No. 351; Geostat (2025, 2026); Netgazeti (2023). Derived values and percentages = GILS calculation.
The EU Adequate Minimum Wages Directive refers to indicative reference values of 50% of the average gross wage or 60% of the median (Directive (EU) 2022/2041, Art. 5(4)). Georgia does not publish median earnings, so only the average-based benchmark can be calculated. Even the most ambitious of the recent proposals would set the minimum below that reference value.
3. A History of Failed Reform
In 2019, GTUC proposed a minimum wage of GEL 320 (Business Media Georgia, 2019). In September 2020, Parliament’s Economic Policy Committee rejected a bill, co-authored by an MP and the Solidarity Network union, to set the minimum wage at 45% of average earnings (OC Media, 2020). The 2020 Labour Code reform bill provided that pay could not fall below the minimum wage and that the mechanism for setting it would be established in a special law (GRATA International, 2020); no such law has been adopted. On 6 October 2023, GTUC submitted an initiative setting the minimum wage at 40% of average earnings — GEL 636 on 2022 data (Netgazeti, 2023). On 19 February 2024 the Health Care and Social Issues Committee supported it (Business Media Georgia, 2024), but it has not been enacted.
Minimum wage proposals have repeatedly stalled between committee stage and enactment. GILS’s analysis of the Commission documents its irregular meetings and limited mandate.
4. Discussion
Argument: Georgia needs a mechanism, not just a number
Each proposal since 2019 has offered a figure. What Georgia lacks is a legal mechanism: criteria (wages, prices, productivity, employment), a body responsible for recommending the rate, a regular review cycle and publication of the evidence. Without such a mechanism, any figure adopted would itself become outdated.
Counter-argument: a higher minimum would destroy jobs and push work into informality
Employers’ concerns are serious in an economy where around 37% of employment is informal and most informal workers are in micro-enterprises and agriculture (Pignatti, 2026). A minimum set too high, too fast, could encourage informal arrangements. This argues for a phased introduction, starting from a level well below the benchmarks, with independent monitoring of employment effects — not for keeping a minimum of GEL 20, which protects no one.
Counter-argument: wages are already rising fast
Average earnings grew by 11.2% in the year to Q4 2025 (Geostat, 2026). But averages are driven by high-paying sectors. A minimum wage protects workers at the bottom, in sectors where wages are lowest and bargaining power weakest — where rising averages provide little guarantee.
5. Limitations
Georgia publishes no median earnings or distribution of wages around possible minimum levels, which limits estimates of how many workers a new minimum would affect. Subsistence minimum figures refer to 2024 and to a working-age man. The status of minimum wage proposals after 2024 relies partly on secondary sources.
6. Conclusion
A private-sector minimum wage of GEL 20 — under 1% of average earnings — is a legal fiction. Proposals to replace it have stalled for seven years, most recently at the Tripartite Commission. Georgia does not need another one-off figure; it needs a minimum wage law with clear criteria, a regular review cycle and a functioning tripartite process to apply it.
GILS Recommendations
- Adopt a Minimum Wage Law establishing criteria, a review cycle and the responsible body, as anticipated in the 2020 Labour Code reform.
- Set a phased path towards a target expressed as a share of average or median earnings, with an initial level informed by employment impact analysis.
- Require the Tripartite Commission to decide within a fixed time, with a fallback to government decision if no agreement is reached.
- Publish median earnings and the wage distribution, so that the coverage and impact of a minimum wage can be assessed.
- Monitor effects on formal employment through an independent review after the first two years.
GILS Position
GEL 20 has not protected a single Georgian worker for many years. GILS supports a minimum wage law that sets a credible floor through evidence and social dialogue, introduced gradually and reviewed regularly.
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
- OC Media (2020). Georgian Parliament refuses to revisit $6 minimum monthly wage set by Eduard Shevardnadze. oc-media.org
- European Parliament and Council (2022). Directive (EU) 2022/2041 on adequate minimum wages in the European Union, Article 5(4). eur-lex.europa.eu
- Employsome (2026). Minimum Wage in Georgia: 2026 Overview. employsome.com
- GRATA International (2020). The Parliament of Georgia approved at first hearing the bill on amendments to the Labor Code. gratanet.com
- Geostat (2026). Average Monthly Nominal Earnings of Employees (IV Quarter, 2025). geostat.ge
- Geostat (2025). Subsistence minimum (2024 values). National Statistics Office of Georgia.
- Pignatti, C. (2026). Recent Trends on Informal Employment in Georgia. ILO Working Paper 159. doi.org/10.54394/MOJI5185
- Matsne (1999). Presidential Order No. 351 of 4 June 1999. Legislative Herald of Georgia.
Suggested citation: GILS Research Team (2026). Georgia’s Minimum Wage Has Been GEL 20 Since 1999. 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.
Was this article helpful?
Disclaimer. This article is health journalism intended for general information and education. It is not medical advice and is not a substitute for professional diagnosis or treatment. Always consult a qualified healthcare provider about your individual circumstances. Full disclaimer →
Related Coverage
Editorial standards. This article was produced under the GMJ News editorial process, with oversight by the GMJ Editorial Board. Our editorial process. Spotted an error? Contact the editorial team.
