PM Irakli Kobakhidze: State pension for under-70s to rise by 45 GEL to 415 GEL from January

“The monthly state pension for retirees under the age of 70 will increase by 45 GEL from 1 January, surpassing the standard 20 GEL adjustment mandated by indexation,” Prime Minister Irakli Kobakhidze announced at a government press briefing today.

The policy change will bring the monthly pension for under-70s to 415 GEL (excluding higher-rate pensions for residents of designated mountainous settlements) and add 128 million GEL to state expenditure.

“We wish to share an important decision with the public regarding social welfare. We have decided to increase the pension for retirees under 70 by 45 GEL, rather than the 20 GEL required under the statutory indexation rule. Consequently, from 1 January, the pension for retirees under 70, outside of mountainous areas, will rise to 415 GEL,” Kobakhidze said.

The Prime Minister noted that social spending already consumes over one-third of the state budget, placing it near the maximum threshold recommended by international financial institutions.

“In 2026, over 5 billion GEL was allocated for old-age pensions, alongside 540 million GEL for co-financing the contributory pension scheme. By way of comparison, total pension expenditure in 2012 stood at just 1.065 billion GEL,” the Prime Minister explained.

“One-third of the state budget is already dedicated to social welfare. This means social spending is right at the limit of international financial guidelines. Exceeding this limit would significantly slow economic growth, fuel inflation, and undermine fiscal stability, which in turn could adversely affect financing from international institutions,” Kobakhidze said.

PM Kobakhidze added that within these fiscal constraints, the government would continue seeking ways in future years to increase pensions for under-70s beyond statutory indexation requirements.