Living Wage in Georgia

A living wage, simply put, is a wage that allows workers to cover their basic needs and enjoy a decent standard of living. It should cover all necessary food, clothing, housing, education, health care, transportation and other essential needs – plus a bit left over for unexpected expenses. It should also be attainable by working normal hours at one job, without overtime.

A living wage is not the same as a “subsistence wage,” which refers to the minimum wage a worker needs to merely survive. Nor is it the same as the minimum wage, which is the lowest remuneration that employers can legally pay their employees by law.

There are many reasons to pay a living wage, but chief amongst them is the issue of basic dignity. Employees who give their time and labor to an employer should be paid enough to cover their basic expenses and afford a decent standard of living. A society where workers are chronically underpaid to the point of destitution is not only cruel and inhospitable, but also unsustainable in the long term. Employers who pay a living wage contribute to Georgia becoming a more equal, just and stable place to live.

The living wage also has huge economic benefits for companies. In fact, it’s one of the soundest investments that a business can make.

First, better wages for workers means they have more money to spend, which helps grow the economy. Second, Georgian companies often complain that they cannot find or retain good staff. Living wages help solve that problem. Better wages lead to increased employee well-being and health, improved loyalty and commitment and less absenteeism. Workers who stay longer in their jobs tend to also get better at those jobs, which can improve productivity.

Finally, paying a living wage can improve a company’s brand reputation by showing consumers that the company cares about their community. This can only help their bottom line.

Unfortunately, prevailing wages in Georgia are currently far below the living wage. The minimum wage is a paltry 20 GEL per month, and has not been updated since 1999.

According to government data, the median wage – the amount that divides workers into two equal groups – was 1,040 GEL per month as of 2022. That means 50% of workers earn less than that amount. Even the average (mean) wage was only 1,543 GEL per month in 2022, still below the living wage.

How can we make a living wage a reality? Unfortunately, there’s no quick and easy solution. Building the society we want will take time, effort and creativity. But here are a few concrete actions you can take to start laying the groundwork for better wages.