Georgia intends to begin indexing pensions to inflation and economic growth, says Georgian Finance Minister Ivane Matchavariani.
“An increase in pensions for people less than 70 years old will be adjusted based on the inflation rate, while an increase of pensions for people above 70 will be adjusted based on 80% of economic growth as well as the inflation rate,” said Matchavariani.
Meanwhile, Matchavariani noted that pensions of people less than 70 years old would increase by minimum of 20 GEL ($6.2 or EUR 5.7) in a year, while for people above 70 years by minimum of 25 GEL ($7.8 or EUR 7.2). That will be the case in a situation if the increase of indexed pensions is less than this minimum amount.
In addition Georgia will increase pensions for people above 70 years by 30 GEL ($9.4 or EUR 8.6) from July 1.
“Despite the fact that our budget is facing a significant challenge today, we have not rejected this initiative, as we think that in this context, an increase of pensions is even more important,” said Matchavariani.
Georgia already increased pensions of all pensioners by 20 GEL on January 1. (Agenda/Business World Magazine)