The (Non)living Wage
27 August, 2015
The (Non)living Wage
Recent calculations by Statistics Service have established that life is now cheaper and it’s possible to live on just 137 GEL per month . Apparently, in July, as compared to June, the living wage of an average Georgian decreased from 143 GEL to 137.8 GEL. According to Statistics Service, this was caused by seasonal factors and the local fruits and vegetables becoming cheaper; but in reality, with all the price hikes and diminishing incomes, survival is becoming even more difficult.

As calculated by statisticians, an ab­le-bodied man needs a bit more than 155.6 GEL for survival, while a medium-sized family needs 261 GEL.

The Statistics Service calculates the living wage in accordance with the goods basket that was drawn up by the Healthcare Ministry in 2003, adjusting it to the needs of an able-bodied man. The basket reflects the daily ration of 40 obligatory products necessary for a person’s existence and in case you only consume 250g of bread, 20g of beans and 5g of confectionery, you may even keep some change from the 5 GEL of supposed daily living wage.

It’s interesting that this supposed wage takes neither communal nor medical costs into consideration. Apparently, the state does not consider medicines or medical services to be necessary for survival either, and regards half an egg and 10g of meat as a perfect daily ration. It’s even more paradoxical that the state-determined living wage fluctuates between 137 and 155 GEL, yet Georgians below the poverty line only receive 60 GEL in welfare.

Apparently, the state does not consider medicines or medical services to be necessary for survival either, and regards half an egg and 10g of meat as a perfect daily ration.

Soso Archvadze, economics expert:

“Methodology used by the National Statistics Service for calculating the living wage is actually based upon the structure and formats that were formed in the middle of 1990s and are grossly obsolete today. Since then, both incomes and expenditures, as well the culture of consumption itself, have considerably changed and accordingly, the methodology is to be reviewed. Depending on what we include in the living wage, the value of a goods basket will change drastically. For instance, the cost of calories having animal origin is 2.5 times higher than that of plant-derived ones. Accordingly, if we fill the goods basket with vegetable products, 155 GEL may just be enough, but will it be sufficient for an adequate existence? These statistics show that our state resembles an ostrich with its head stuck in sand nowadays.
Both the people and the media should exert pressure on authorities and they, in turn, should demand that the Statistics Service change the methodology of calculating the living wage. Most importantly, the basket does not account for inflation, which makes it look simply ridiculous.”

Print
Other Stories
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
Mziuri Park in Tbilisi to be renovated soon
It was the dream of prominent Georgian writer Nodar Dumbadze that when the original Mziuri park was constructed and opened in 1892 that it should be a park for children,
Winemakers to produce Kvanchkara in its place of origin - Racha
Khvanchakara is a semi-sweet Georgian red wine which originates from Racha, in the western part of Georgia. Kvanchkara is made of two types of grape Mujuretuli and Aleksandrouli.
The level of Georgian wine and Chacha exported has increased
The National Wine Agency of Georgia has recently published statistical information about the level of Georgian wine and Chacha exported between January and July, 2018.
New fire engines to be Manufactured in Georgia
The Acting Head of the Emergency Management Agency Shalva Khutsishvili said that the old Zili fire engines (which were made in the USSR) will be phased out and replaced with new ones, manufactured in Georgia.
Georgia witnesses a record number of tourists
The Georgian National Tourism Administration publishes statistical information about international visits to Georgia.
Canadian businessman plans to build a hotel in Bakhmaro
Canadian businessman Vadim Malishev plans to build a hotel in Bakhmaro resort, Guria, in the western part of Georgia.
Coffee Factory will open in Tbilisi in October
The first coffee factory (which will be located on the Kakheti highway) in Tbilisi will open in October.
Places in Georgia where real estate is the most expensive
The real estate market in Georgia is growing annually. In Tbilisi as well as other regions of Georgia new developments are increasingly taking place.
How much does a vacation cost in Tbilisi?
It is the middle of summer and those who have not yet taken a vacation are looking for an appropriate place for sure!
The price for extreme sports in Georgia
Georgia offers a variety of options to extreme sport lovers.
The number of Georgians who own property abroad increases
The number of foreign properties owned by Georgians is increasing.
How much does Taxi cost in Tbilisi?
Stories how Taxi drivers try to deceive passengers and charge them with more money than they should pay are known for everybody all over the world.
What are the highest paid areas in Georgia
According to the data collected by the National Statistics Office of Georgia in the first quarter of 2018 the highest paid jobs in Georgia are found in the financial and insurance fields.
PHOTO OF THE DAY
Exchange Rates
GEL Exchange Rate
Convertor
18.09.2018
19.09.2018
USD
1
USD
2.6156
2.6188
EUR
1
EUR
3.0498
3.0593
GBP
1
GBP
3.4259
3.4414
RUB
100
RUB
3.8379
3.8673
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.6188
EUR
1
EUR
3.0593
GBP
1
GBP
3.4414
RUB
100
RUB
3.8673
September 2018
Mon Tue Wed Thu Fri Sat Sun
1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30