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Subsistence Minimum Increases - What Are The Reasons?

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Natia Taktakishvili
15.02.23 13:00
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Subsistence minimum for working-age male amounted to GEL 256.9 in January 2022, which was GEL 30.6 more compared to the same period of the last year, - show data from the National Statistics Office of Georgia (Geostat).

The increase in the subsistence minimum is related to high inflation, which amounted GEL 3.3 compared to the previous month.

The subsistence minimum is calculated in Georgia since 1997. It was this year that Parliament passed a law that is still in force today. According to the law, the subsistence minimum is a social guideline used to determine the minimum amount of salaries, pensions, scholarships, allowances and other social benefits. Consequently, its amount has a significant political and social meaning.

The subsistence minimum is calculated through a special food basket, which was determined by the order of the Minister of Health on May 8, 2003. Moreover, the subsistence minimum is the only indicator of the value of food.

The subsistence minimum does not include the cost of utility bills, transportation costs and many other costs that all people have to pay. The current system is based solely on the value of food.

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