Shalva Papuashvili: “Average salaries have tripled, reaching GEL 2,005 during the governance of the Georgian Dream.”
Verdict: FactCheck concludes that Shalva Papuashvili’s statement is HALF TRUE.
The average nominal salary constituted GEL 713 in 2012 and GEL 1,767 in 2023. Data from only the two initial quarters of 2024 are available. Furthermore, it is methodologically inaccurate to compare a quarter to an entire year. The average salary would reach GEL 2,023, which is 2.8 times higher than the 2012 level, assuming that the salary growth rate in 2024 will match the 2023 level.
It is crucial to consider inflation whilst analysing salaries. Consumer prices have increased by a total of 65% in the last 12 years. Hence, GEL 713 in 2012 holds the same purchasing power as GEL 1,176 today.
Real salaries have increased by 72% since 2012 (assuming the growth rate of 14.5% in 2024, similar to 2023). This figure is substantially lower than the 200% growth presented by the Chairperson of Parliament. Thus, FactCheck concludes that Shalva Papuashvili’s statement is HALF TRUE.
Analysis
In a post shared on his official Facebook page, the Chairperson of Parliament, Shalva Papuashvili, claimed: “The average salary has tripled, reaching GEL 2,005 [during the governance of the Georgian Dream].” This post included a card, presenting the 2012 salary as GEL 712 and that of 2024 as GEL 2,005.
The average monthly gross salary for hired employees amounted to GEL 713 in 2012. This figure increased by 2.5-fold in 2023, reaching GEL 1,767. Furthermore, it rose to GEL 2,005 in the second quarter of 2024. It is methodologically inaccurate to compare quarterly figures with the annual data, considering seasonality and other factors. Additionally, 2024 has not yet concluded and quarterly data for 2012 are unavailable. The increase in salaries amounted to 14.5% in 2023. The average nominal gross salary in 2024 would constitute GEL 2,023, assuming that the 2023 annual growth rate is maintained throughout 2024 (notably, the quarterly growth rate has decreased from 18% to 12%). Whilst the aforementioned scenario would indicate a nominal increase of 2.8-fold, this does not reflect a corresponding 2.8-fold increase in economic well-being as consumer prices have also grown alongside salaries over the past 12 years.
Consumer prices increased by a total of 65% from 2013 to 2024 (inflation rate of 1.1% from January to September 2024 was considered for this analysis). Thus, GEL 713 in 2012 holds the same purchasing power as GEL 1,176 today.
Graph 1: Average Monthly Gross Salary in the Domestic Currency
Source: National Statistics Office of Georgia
Salaries increased by 72% over the past 12 years rather than the 200% claimed by Shalva Papuashvili when considering inflation. This discrepancy is substantial. Whilst the salary growth rate is similar to that of the real economy, it still lags behind. The real economy expanded by 70% from 2013 to 2023. If the growth rate from January to August of the current year is maintained, total growth over the 12 years would reach 87%. The updated forecast of the International Monetary Fund, projecting a growth rate of 7.6%, indicates a total growth of 83% over the aforementioned period.
Notably, the amounts mentioned in discussions about salaries are before taxes. Income tax amounts to 20% alongside a 2% pension contribution for the majority of employees since 2019. The net salary (salary after taxes have been deducted) amounts to approximately GEL 570 in 2012 and GEL 1,385 in 2023. The net salary is projected to reach approximately GEL 1,585 in 2024 if the growth rate remains unchanged.
In addition to average salary, GeoStat also calculates the median salary which reflects the earnings of the largest segment of the employed population. The gross median salary rose by 19% in 2023, reaching GEL 1,238, corresponding to an after-tax salary of GEL 970. Quarterly data on the median salary are not published. If the 19% growth rate persists, the 2024 gross median salary is projected to reach GEL 1,473, equivalent to a net salary of GEL 1,155.
Median salary statistics have been recorded since 2018 and cannot be compared to the 2012 levels. The real average salary has increased by 72% since 2012 when adjusted for inflation, rather than the 200% cited by the Chairperson of Parliament. Thus, FactCheck concludes that Shalva Papuashvili’s statement is HALF TRUE.
