The retirement age in Georgia is 65 for men and 60 for women, and the current amount of the pension is 180 GEL a month. The pension scheme is limited to a public, universal flat-rate pension for people currently living in the country and reaching retirement age.
Mandatory employee benefits include a pension savings scheme, personal accident insurance, and healthcare.
Mandatory employee benefits apply to Georgian citizens employed or self-employed and get income from employment and self-employment, excluding non-residents. But the rule is applied to foreign citizens and stateless persons permanently living in the country (except non-resident individuals) as well.
The pension contributions of employees are financed in the following way:
- The employer pays on behalf of each employee through the electronic system into his/her Individual Pension Account, The contribution is equal to 2% of the taxable page of an employee;
- Self-employed people pay 4% of his/her annual income;
- The state pays 2% of his/her taxable wage and/or income of a self-employed person to the Individual Pension Account of each employee not exceeding 24 000 GEL paid as annual wages and/or received as income by self-employed persons a year, or 1% of the wage and/or income of the self-employed for the amount between 24 000 GEL and 60 000 GEL. The stated does not contribute for the amount exceeding 60 000 GEL.
The Pension Agency of Georgia is an independent legal body, responsible for the implementation, management, and administration of the pension scheme fund.
According to the information provided by the Pension Agency, 2969 beneficiaries from various categories benefitted from the cumulative pension of 7.546,950 GEL.
The report by the agency published in December 2022 informed that the value of total pension assets as of 2023 was 2.95 billion GEL. The net earnings for the investment activities amounted to 438 million GEL.
The report on investment portfolios published in December 2022 was said to total 40.8%, but real returns (after inflation) came to 2.69%.
From March 2022, the Pension Fund started to buy US dollars which amounted to 18.8% US dollars of the investment portfolio as of December 31, 2022, but 81.2% was in GEL.