Irakli Kobakhidze: “The average salary rose from GEL 1,300 to GEL 2,217 between 2022 and 2024.”
Verdict: FactCheck concludes that Irakli Kobakhidze’s statement is HALF TRUE.
The average monthly salary amounted to GEL 1,305 in 2021 and was projected to reach GEL 2,060 in 2024 according to preliminary data. The figure cited – GEL 2,217 – reflects only the data from the fourth quarter of 2024. Comparing quarterly data to annual figures is methodologically incorrect – a proper comparison requires matching periods such as year to year or quarters and months to the corresponding period of previous years.
In addition to the aforementioned methodological issue, Irakli Kobakhidze’s statement fails to account for inflation. Consumer prices rose by a total of 13.5% between 2022 and 2024. As a result, when adjusted for inflation and expressed in 2021 constant prices, the average salary increases from GEL 1,305 to GEL 1,813 over the period.
Irakli Kobakhidze presented the wage increase as 70% since 2021 over the 2022-2024 period; whereas in reality, the nominal growth amounted to 58% whilst real growth was only 39%. On the one hand, he made a methodological error by comparing quarterly data with annual figures and, furthermore, also failed to account for inflation – resulting in an overstatement of real wage growth 1.8-fold. Considering the above, FactCheck concludes that Irakli Kobakhidze’s statement is HALF TRUE.
Analysis
Commenting on the economy and employee remuneration, Irakli Kobakhidze stated: “The average salary [in 2022-2024] rose from GEL 1,300 to GEL 2,217. Accordingly, it is obvious that the economic growth that is being recorded in the country is reflected in broad segments of the population.”
The nominal monthly salary in Georgia in 2021[1] amounted to GEL 1,305 and was projected to reach GEL 2,060 in 2024 according to preliminary data. The GEL 2,217 figure cited by Irakli Kobakhidze reflects only the data for the fourth quarter of 2024. However, full-year data should be compared to full-year data or specific quarters or months should be compared to the corresponding period of previous years to account for seasonal fluctuations and ensure methodological accuracy. In practice, salaries tend to peak in the fourth quarter. For instance, whilst the average salary in 2021 was GEL 1,305 annually, it rose to GEL 1,465 in the fourth quarter of that year. Therefore, if the focus is on the annual data, GEL 1,305 should be compared to GEL 2,060; if the comparison concerns only the fourth quarter, then GEL 1,465 should be compared to GEL 2,217.
Even with the correct methodology, the increase from GEL 1,305 to GEL 2,060 represents a 58% rise in nominal salary which is a notable growth for over a three-year period. However, a crucial detail is omitted – this figure does not account for inflation.
Improvements in living standards are determined by increases in real income – not nominal. A higher salary should imply that individuals can afford more goods and services. Nominal wages have increased every year since the introduction of the GEL in 1995, including during economic crises. For instance, nominal salaries rose by 4% in 2009 – from GEL 535 to GEL 557; furthermore, they increased by 5.4% in 2020 – from GEL 1,130 to GEL 1,190.
Graph 1: Average Monthly Gross Salaries in GEL
Source: National Statistics Office of Georgia
Consumer prices rose by a total of 13.6% between 2022 and 2024, reducing the real wage growth rate over the three-year period from 58% to 39%. Notably, wages would have rose from GEL 1,305 to GEL 1,815 in real terms had consumer prices remained unchanged.
Graph 2: Average Monthly Gross Salaries in GEL
Source: National Statistics Office of Georgia
Whilst salaries increased by 39% in purchasing power terms – from GEL 1,305 to GEL 1,813 – Irakli Kobakhidze presented it as though the growth rate had reached 70%, citing a rise from GEL 1,300 to GEL 2,217.
The national average salary is calculated using a weighted average across all employees. However, there are significant variations by economic sector and region. The average salary in Tbilisi is 17% higher than the national average[2] and 70%-80% higher than those of some regions.
GeoStat data reflects gross taxable income from which a mandatory 2% pension contribution and a 20% income tax are deducted in most cases. After these deductions, the take-home salary dropped to GEL 1,023 in 2021 and is projected to reach GEL 1,614 in 2024 – this amounts to GEL 1,421, when also adjusted to 2021 constant prices. This means that the average net salary rose from GEL 1,023 to GEL 1,614 in nominal terms and from GEL 1,023 to GEL 1,421 in real terms between 2021 and 2024.
Whilst many people understand “salary” as the net amount received in cash, the official figure refers to gross income before taxes. However, although Irakli Kobakhidze did not claim to be referring to net income, this did not affect the overall verdict.
On the one hand, Irakli Kobakhidze made a methodological error by comparing quarterly data with annual figures and, furthermore, also failed to account for inflation – resulting in an overstatement of real wage growth from 39% to 70%. Considering the above, FactCheck concludes that Irakli Kobakhidze’s statement is HALF TRUE.
