Direct Request (CEACR) - adopted 2024, published 113rd ILC session (2025)

Social Policy (Basic Aims and Standards) Convention, 1962 (No. 117) - Georgia (Ratification: 1997)

Parts I and II of the Convention. Improvement of standards of living. In its previous comments, the Committee invited the Government to continue to provide information on the impact of the implementation of social protection policies on the reduction of poverty and to provide information on the manner in which the improvement of standards of living has been regarded as the principal objective in the planning of economic development. The Committee notes the Government’s indication that its social policy is focused on the creation of a sustainable social protection system to help the population realize their social rights and reduce poverty. The social protection system in Georgia includes various support and assistance programmes for vulnerable groups of people, including children, older persons, persons with disabilities, people living in households under the poverty line, and other groups. The Committee further notes the information provided by the Government on the programmes implemented throughout the country to prevent and eradicate poverty, including the different forms of State pension and monetary and non-monetary benefit schemes, as well as a public works programme for vulnerable population groups. According to amendments made in 2021 to the Law on State Pension, the Committee notes that a pension indexation rule was established to gradually increase pensions at an amount not less than the inflation rate. The Government indicates that persons permanently living in the mountainous regions and receiving a state pension get a supplementary benefit, which is 20 per cent of the pension amount. The number of beneficiaries receiving supplementary pension benefits increased during the reporting period, with 358,713 beneficiaries in 2019; 446,301 beneficiaries in 2020; 460,226 beneficiaries in 2021; and 496,585 beneficiaries in 2022. With respect to independent producers and wage earners, the Committee notes that training and financial support is provided to micro and small businesses.

The Committee notes that, over the past decade, Georgia has made significant progress in improving its standard of living, although challenges remain. It notes in particular that the country has experienced marked economic growth, with Gross National Income (GNI) per capita increasing from US$3,210 in 2010 to US$5,600 in 2022, driven by improved labour market opportunities. The poverty rate, measured by the national poverty line, has more than halved over the same period which indicates significant progress in reducing poverty levels across the country (World Bank, 2024). It also notes with interest that, in 2020, a Labour Law Reform was facilitated by the ILO. The labour market however continues to face persistent challenges, with the labour force participation rate at about 52 per cent in 2022, and a significant gap between men (64 per cent) and women (41 per cent). The unemployment rate was nearly 17 per cent in 2022, with youth unemployment particularly high at over 38 per cent (ILOSTAT, 2024). The Committee also notes that a large portion of the workforce remains in the informal economy, with an estimated 37 per cent of employment being informal which negatively impacts job security and access to social protection benefits in spite of efforts made to enhance access to social protection. Also, with respect to the social protection measures mentioned by the Government, the Committee wishes to point out that the preparation and implementation of integrated and coordinated employment and social protection policies and measures constitute powerful levers for achieving the important objective of formalizing the economy, increasing productivity and improving the standards of living of the entire population, in particular the most vulnerable persons excluded from all social and labour protection, a great many of whom work in the informal economy, often in rural areas. In view of the above, theCommittee requests the Government to provide updated information on the results achieved through the integrated policy measures taken so far so as to make the improvement of standards of living the principal objective in the planning of economic development. In particular, it requests the Government to provide detailed information on the impact of any measures taken to ensure favourable conditions enabling the transition from the informal to the formal economy for independent producers and wage earners, as well as micro and small businesses. The Committee wishes to draw the Government’s attention to best comparative approaches as regards promoting transitions from the informal to the formal economy and to request the Government whether the measures taken at the national level include any of the following: (i) streamlining registration and compliance procedures to make it easier for businesses to formalize and providing clear guidelines on the benefits of formalization; (ii) offering financial incentives such as tax breaks, access to credit, and subsidies can encourage informal businesses to transition to the formal sector; (iii) enhancing the capacity and efficiency of institutions responsible for enforcing labour laws and regulations to build trust in the formal system and reduce corruption; (iv) extending social protection coverage to informal workers, including health insurance, pensions, and unemployment benefits; (v) providing education and vocational training to improve the skills of workers and entrepreneurs, making them more competitive in the formal economy; (vi) improving access to essential infrastructure such as electricity, water, and transportation can reduce operational costs and barriers for small businesses; (vii) facilitating access to markets through trade policies, business networks, and digital platforms can help small businesses grow and integrate into the formal economy; as well as (viii) establishing clear legal frameworks that protect property rights, intellectual property, and contract enforcement to create a secure environment for businesses to operate formally.

Part III. Migrant workers. The Government refers in its report to the Migration Strategy for 2021–30, which is based on a cross-cutting approach of migration and development, focusing on channelling the efforts of state authorities towards enhancing the benefits of migration. The Migration Strategy defines key sectoral priorities, including the improvement of the migration management system, the facilitation of legal migration, the fight against illegal migration, the reintegration of returned migrants, and the integration of foreigners. The Government adds that the Law on Labour Migration provides for sanctions for intermediary companies if they fail to register their activities or do not submit an annual report of their activities to the competent authorities. The Committee requests the Government to provide detailed information on the impact of the implementation of the Migration Strategy for 2021–30 on the living and employment conditions of migrant workers (Articles 6–9 and 14(3) of the Convention). It also once again requests the Government to provide information on the penalties imposed on unregistered employment agencies that engage in fraudulent practices. The Committee further refers to its comments on the application of the Private Employment Agencies Convention, 1997 (No. 181), in particular as regards the issue of the conclusion of bilateral agreements on labour migration.

Part IV. Minimum wages and proper payment. In its previous comments, the Committee requested the Government to keep the Office informed on the progress made by the Tripartite Social Partnership Commission (TSPC) working group with regard to the minimum wage and to provide information on any measures taken or envisaged to incorporate the provisions on minimum wages into the Labour Code. The Government indicates that, in the Action Plan of the National Strategy for Labour and Employment Policy of Georgia for 2022–23, the minimum wage is considered as one of the main issues, and the Action Plan calls for the discussion of its economic feasibility in the framework of social dialogue and, if necessary, the planning of appropriate measures based on the assessment of the impact of regulation. It recalls that the discussions on the minimum wage are held between the Government and the social partners within the TSPC, adding that, in 2021, the TSPC discussed the determination of the minimum wage and considered it appropriate to continue discussions in a tripartite format with the involvement of experts. The Committee notes the Government’s indication that work is underway on a pilot project to define and implement a minimum wage in the health sector and a minimum hourly wage for doctors working in polyclinics that are part of the universal health coverage programme. Moreover, following amendments made to the Labour Code of Georgia in 2020, the concept of remuneration in section 41 was clarified to include the basic or minimum wage or salary, or any other remuneration paid in cash or in kind, and which an employee receives directly or indirectly from the employer in exchange for the performance of the work. Based on the results of inspections conducted in 2021–22, violations relating to the late payment of wages were identified at 37 workplaces in 2021, and 23 workplaces in 2022. The Committee once again requests the Government to provide information on any progress made by the TSPC working group with regard to the minimum wage and on any progress to incorporate the provisions on minimum wages into the Labour Code. Noting that, according to section 41 of the Labour Code, a worker’s remuneration may be paid in kind, the Committee once again requests the Government to indicate the measures taken to ensure that the payment of wages to the worker is made in legal tender (Article 11(2 and 3)); to forbid the substitution of wages with alcohol or other spirits and payment of wages in taverns or stores except to workers employed therein (Article 11(4 and 5)); to ensure the regular payment of wages (Article 11(6)); and to prevent any unauthorized deductions from wages (Article 11(8)). The Committee trusts that the Government will take the necessary measures in the near future, in consultation with the most representative employers’ and workers’ organizations, to adopt adequate legislative provisions on the minimum wage and the proper payment of all wages. The Committee refers the Government to the Report of the Meeting of Experts on wage policies, including living wages (Geneva, 19–23 February 2024), and reminds the Government of the availability of ILO technical assistance to meet its obligations with Part IV of the Convention.

Article 12. Advances on wages. The Government indicates that the amounts of advances on wages paid by an employer to a worker are not established by legislation. It adds, however, that if such an advance is made, section 43 of the Labour Code shall apply, which mentions that an employer may deduct overpayments not exceeding 50 per cent of an employee’s salary. While referring to the number of violations concerning the withholding of more than 50 per cent of wages, the Government indicates that violations were identified at 25 workplaces in 2021 and 51 workplaces in 2022. The Committee recalls that the maximum amounts of advances on wages shall be regulated by the competent authority (Article 12(1)) and any advance in excess of the amount laid down by the competent authority shall be legally irrecoverable and may not be recovered by the withholding of amounts of pay due to the worker at a later date (Article 12(3)). The Committee therefore requests the Government to indicate the measures taken to regulate the maximum amounts and manner of repayment of advances on wages, to limit the amount of advances which may be paid to a worker in consideration of his or her taking up employment and to clearly explain to the worker the amount of the advances permitted, as well as to make legally irrecoverable any advance in excess of the amount laid down by the competent authority and to ensure that any advance may not be recovered by the withholding of amounts of pay due to the worker at a later date. It also requests the Government to continue to provide information on the practical application of section 43 of the Labour Code, including the number of identified violations and penalties imposed.

Article 13. Protection against usury. The Government refers to section 625 of the Civil Code of Georgia, which determines the obligations of a creditor and the amount of interest on a loan. According to section 625, paragraph 2, the annual effective interest rate must not exceed 50 per cent. The Committee notes the Government’s indication that the Statute on the Approval of the Regulation on Crediting Individuals, approved by Order No. 44/04 of the President of the National Bank of Georgia of 13 March 2020, aims to promote the stable and sustainable functioning of the financial system of Georgia and ensure responsible crediting of individuals by credit institutions. The Committee notes that, according to the Financing SMEs and Entrepreneurs 2024: An OECD Scoreboard, the average interest rate charged to SMEs in Georgia is high by OECD standards, but it has significantly declined over the last decade, from 17.5 per cent in 2010 to 9.3 per cent in 2020, although it rose again to 11 per cent in 2022. In view of the above, the Committee requests the Government to continue to provide updated information on the measures taken or envisaged to protect wage earners against usury.