Pensions Rise, Indexation Introduced in 2021
The Georgian Ministry of Internally Displaced Persons from the Occupied Territories, Labor, Health and Social Affairs announced that an increase in government pensions, as well as a “pension indexation mechanism” have come into effect from the beginning of 2021.
According to the announcement of January 4, the monthly pension of retired persons under 70 has risen from GEL 220 (USD 67) to GEL 240 (USD73), while the pension for those over 70 increased from GEL 250 (USD 76) to GEL 275 (USD 83).
The allowance for under 70 pensioners that are permanently residing in highland settlements has risen from GEL 264 (USD 80) to GEL 288 (USD 87), and for those over 70 – from GEL 300 (USD 91) to GEL 330 (USD 100), in accordance with the Law on the Development of Mountainous Regions, granting permanent highland residents a state pension supplement of 20%.
In addition, a “pension indexation mechanism” has been introduced, encompassing “a guaranteed annual increase in pensions with taking economic indicators into account,” the Ministry noted.
According to the 2021 state budget confirmed by the Parliament on December 29, the Ministry of Social Affairs will spend GEL 2.6 billion (USD 786 mln) on pensions – a rise compared to GEL 2.23 billion (USD 674 mln) in the 2020 budget.
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