FORMATION AND REGULATION OF THE MINIMUM WAGE FEATURES IN GEORGIA

Abstract

In the interests of economic development and economic efficiency, in the current global crisis, priority is given to the development of human capital, increase the competitiveness of the workforce, creating fundamentally new mechanisms to stimulate labour, this, in turn, ensures an increase in labour productivity, its quality and efficiency. The successful solution of this problem requires the improvement of the organization of wages and its optimal state regulation. In the conditions of the current global crisis, role of the state in the field of wage regulation is more social in nature and its main function is to ensure a minimum level of income for the population. This last one, should be carried out by establishing a real subsistence minimum, a minimum wage and establishing an optimal ratio between them. In developed countries, the minimum wage is regulated on the basis of economic development, labour productivity, the level of average wages and the real value of the minimum consumer budget. The specific amount of the minimum wage is set at the national level by the legislature of the country, and its size in a particular area or region is determined by agreements concluded between trade unions and representatives of trade unions. In determining it, the following shall be taken into account: the needs of workers and their family members; the overall level of wages in the country; the value of life and its change; factors of economic development; level of labour productivity and opportunities to achieve and maintain a high level of employment. The purpose of establishing a minimum wage is to provide social protection for employees. Indeed, "The minimum wage has historically been a social protection mechanism which should protect low-wage workers and their families from poverty" (Khelaia, 2020,2). This problem is especially relevant for our country, because to date, there is no comprehensive mechanism for state regulation of the minimum wage and its defining Legislative Framework. In a scientific article is presented the formation of the minimum wage and its peculiarities of regulation, analysis of the related legal framework from the Soviet period to the present day in Georgia. Is established the basic principles, goals and objectives of minimum wage formation. Particular attention is paid to the assessment of the pros and cons of the legally established minimum wage. The final section presents the main directions for calculating the minimum wage and improving its state regulation in Georgia.