Pensions for people under the age of 70 will increase by GEL 45 to GEL 415 (USD 160) from January 1, Georgian Dream Prime Minister Irakli Kobakhidze announced on October 12, reversing the government’s initial plan to raise them by GEL 20. He also announced a new, optional scheme allowing eligible internally displaced persons (IDPs) to receive GEL 10,000 (USD 3,860) per family member instead of state-provided housing.
“We have decided that, instead of the GEL 20 increase provided for under the indexation rule, we will raise the pension for retirees under the age of 70 by GEL 45. Accordingly, from January 1, the pension for retirees under 70, except those living in high-mountain settlements, will be GEL 415,” Kobakhidze said during the October 12 briefing.
The draft 2027 state budget, registered in Parliament in early October, had envisaged raising pensions for people under 70 to GEL 390, while those aged 70 and over were set to receive GEL 555, an increase of GEL 60. Pensioners aged 70 and over living in high-mountain settlements are set to receive GEL 665. The announced changes will only affect the first group.
According to Kobakhidze, the increase will raise state budget spending on pensions by GEL 128 million. He said that “social spending accounts for more than 33% of the state budget,” adding that “In 2026, over 5 billion GEL was allocated to age-related pensions, and 540 million GEL to co-financing the funded pension scheme.”
“For comparison, in 2012 only 1 billion 65 million GEL was allocated to pensions,” he noted.
Kobakhidze argued that “social spending is already at the limit of the acceptable norm and of the recommendations of international financial institutions.” Exceeding that limit, he warned, would “significantly slow economic growth and fuel inflationary processes,” altering the effectiveness of social spending.
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“Increasing social spending above the limit would reduce the quality of fiscal consolidation, which would also have a negative impact on the financing Georgia receives from international financial institutions,” he argued.
Nevertheless, Kobakhidze said the government would seek to increase pensions for people under 70 beyond the indexation rule in the coming years, “within the limits of the acceptable norm.”
Compensation Scheme for IDPs
Kobakhidze also announced a new program allowing eligible IDP families to choose monetary compensation instead of state-provided housing. Under the scheme, each family member will be eligible for GEL 10,000 in compensation, only if the family has not previously received housing or corresponding monetary compensation.
He stressed that participation would be “entirely voluntary,” noting that GEL 58 million would be allocated to the program this year, with funding set to increase in subsequent years. The new scheme, according to him, is intended to accelerate the resettlement of IDPs, alongside the government’s existing housing programs.
Hundreds of thousands are estimated to have fled Georgia’s currently occupied regions of Abkhazia and Tskhinvali/South Ossetia as a result of armed conflicts in the 1990s and the 2008 war.
“Since 2012, the Georgian government has been successfully implementing the IDP resettlement program. Compared to 2012, the budget allocated to support IDPs has increased tenfold,” Kobakhidze said, adding that as a result, more than 45,000 IDP families have received new housing as their own property.
He also cited the House in the Village (Soplad Sakhli) program, through which up to 2,000 families have been able to purchase houses in rural areas with state support this year. Once ongoing construction is completed, another 2,600 IDP families are expected to receive new apartments, he said.
“However, despite these impressive results, many IDP families remain to be provided for. Given their number, fully resolving the resettlement issue will take at least 10 more years,” Kobakhidze noted.
“Therefore, to speed up the process, we have decided that, alongside the construction of residential buildings, we will introduce a program under which IDP families can be given monetary compensation instead of housing. Participation in this program will be entirely voluntary,” he said.
Kobakhidze clarified that “alongside the payment of monetary compensation, the construction of residential buildings and the House in the Village program will continue for those IDP families that do not apply for monetary compensation.”
“We are confident that thousands of IDP families will benefit from the program we are offering. We wish every IDP family well-being and a swift return to their native land.”
Public-Sector Salaries to Increase in 2027
The draft 2027 state budget also envisages salary increases for public-sector employees, including senior officials and judges.
According to calculations by RFE/RL’s Georgian Service, the monthly salaries of the President, Prime Minister, and Parliament Speaker are set to increase to GEL 17,350 (USD 6,687), up GEL 1,350 from their current (16,000) salaries.
The salaries of deputy Parliament Speakers would increase to GEL 15,615, up GEL 1,215, while ministers and parliamentary faction chairs would receive GEL 14,748, up GEL 1,148. MPs’ salaries are set to rise to GEL 13,880, up GEL 1,080.
The draft budget also raises the public-sector base salary to GEL 1,735, up from GEL 1,600 in 2026.
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