Average salary in Georgia

The economy of Georgia in 2021 is an actively developing field of activity with an annual GDP growth of 5%. This is reflected in the volume of wages of the local population, which has recently been approaching 400 $... According to this indicator, Georgia is ahead of neighboring Azerbaijan and Armenia, but it is inferior to the overwhelming majority of other European countries, incl. Russia.

Economic situation and incomes of the population today

According to the report of the National Statistical Committee, the Georgian economy has shown a steady growth trend in recent years: from 2017 to 2019, its GDP increased by 10%. Economists' forecasts indicate its further growth by 4-5% in year.

This is due to the following factors:

• structural economic reforms of the Georgian government;
• rapprochement with the European Union;
• an increase in trade (mainly due to exports);
• development of entrepreneurship, small and medium-sized businesses;
• the growth of international tourism;
• favorable investment policy, etc.

Reference! Georgia's GDP per capita per year is about 11000 $. For comparison: in Russia it is equal to 28000 $, Armenia - 9500 $.

Against the backdrop of a growing economy, there is an improvement in the standard of living of the population. Georgia is in 84th place in this indicator, ahead of Belarus, Russia and Armenia. However, per capita income remains at a fairly low level: 130-150 $ per month for every citizen of the country, including pensioners and children.

Salary per month by occupation in 2021

The only legal tender in Georgia is lari. It is subject to a floating exchange rate. Currently 1 USD is equal to 2.45 GEL.

The table below shows the average earnings of representatives of various professions.

Minimum

There is no real working concept of “minimum wage level” in Georgia. The norms that are currently legally enshrined are outdated long ago. For example, in the private sector, the minimum wage since 1999 has been 20 GEL (less than 10 $), and when working in the civil service - 130 GEL (53 $)... These numbers are less than the living wage budget - 175 GEL (71 $).

This led to the intensification of the work of the Georgian government to fix the level of the minimum wage, which would really reflect the current economic situation.

Average

The average salary in Georgia depends on many factors:

• professions and qualifications;
• seniority and work experience;
• gender (men earn on 150 $ more women);
• places of work (private or public company);
• demand in the labor market;
• geographical location (capital city, large city or countryside), etc.

The average monthly gross salary in Georgia is about 400 $, those. in the hands of the average citizen of the country, after paying all the mandatory contributions, he receives about 320 $.

Attention! Georgia has a large share of the "gray" economy: up to a third of residents receive all or part of their earnings "in an envelope".

Average starting

Due to the high unemployment rate (among young people it reaches 30%), the average starting salary in Georgia can be significantly lower than in the labor market as a whole. This is especially true of low-demand vacancies, whose representatives earn during employment by 20-30% fewer experienced employees.

Maximum

There is no legally established maximum wage threshold in Georgia.

The highest earnings are typical for the following areas of activity:

• the property: up to $ 1000;
• public sector: 700-900 $;
• finance: 700-850 $;
• building: 650-700 $.

Labor remuneration by city and region

The distribution of income of the population in the administrative regions of Georgia is extremely uneven.

The regions with the highest wage levels include:

• Tbilisi;
• Adjara Autonomous Republic (capital - Batumi);
• Mtskheta-Mtianeti (Mtskheta).

Tbilisi accounts for up to 70% of investments in the Georgian economy, so residents of the capital earn about $ 500-600 per month.

The lowest salaries among Georgians are among residents of Kakheti, Upper Kartalinia (Gori), Lower Svaneti and Racha-Lechkhumi. In the latter region, the average earnings barely reach 160 $.

Payroll taxes

Georgia has a low tax burden. There are only 6 permanent tax payments applied in the country: 5 - at the state and 1 - at the local levels. This allows it to enter the top ten countries with the best conditions for doing business.

According to the Tax Code, a resident (whose income is taxed in accordance with Georgian legislation) is a person who actually stays in the country for more than 183 days a year. To avoid double taxation, Georgia has bilateral treaties with 54 countries.

Income tax

There is a flat income tax rate in Georgia - 20%... It does not depend on the amount of income received.

For legal entities, income tax is 15%, moreover, companies that invest their income in business development are exempted from paying this tax.

Social contributions and other taxes. Tax-free income

Citizens of Georgia do not make social payments from their earnings. Social tax is combined with income tax. In accordance with the forthcoming pension reform, from the second half of 2018
able-bodied citizens will pay 2% from income to the accumulation fund. More 2% falls on the employer and 1-2% - the state.

An important advantage of the Georgian tax system is the absence of taxes on:

• wealth;
• capital gains;
• inheritance;
• social Security.

The ratio of salary and living expenses

The cost of everyday expenses fluctuates depending on the place of residence: residents of Tbilisi, Batumi and mountain resorts spend the most on household needs. Renting a 1-room apartment in a residential area of ​​the capital is about 200 $ per month, in the center - 400 $... Utilities will cost from 35 $ (for a studio apartment) up to 60 $ (for an apartment with 3 bedrooms). Purchase cost of 1 sq. m. of housing varies within 600-1000 $.

A public transport ticket costs 20 cents, and a travel card for 1 month - 12 $... The average Georgian family of 3 spends on food 200-300 $.

There is a medical insurance system in Georgia, the amount of the insurance premium depends on the level of income. Treatment of certain diseases, as well as insurance of unprotected segments of the population, is carried out at the expense of the state.

Unemployment Rate and Prospects for Migrants

Despite a gradual decline, unemployment in Georgia remains one of the highest in the region and amounts, according to various sources, 11-12%... It is higher among women than among men; and among the townspeople more than among the rural population (20% versus 5%). The highest unemployment rate is observed among young people under 35 years old.

The rather difficult economic situation is forcing a large number of Georgian citizens to emigrate in search of high-paying jobs. Over 800 thousand Georgians live outside the country.Therefore, the state needs an influx of qualified specialists, primarily in the field of IT, real estate and finance.

Representatives of working specialties may face difficulties in finding a job.

Georgia is a country with an economy in transition, which is characterized by unstable economic growth and low incomes of the population, with the exception of highly qualified specialists in demand.