Increase 15% of pension and social insurance benefits from July 1

Along with the 30% increase in basic salary for cadres, civil servants, public employees and armed forces, from July 1, pensioners, social insurance beneficiaries, preferential allowances and social allowances will also have their benefits increased.

Based on the proposal to adjust the basic salary from the current VND 1.8 million to VND 2.34 million/month for cadres, civil servants, public employees and armed forces, the Government proposed to increase the current pension and social insurance allowance by 15% from July 1 (June 2024).

At the same time, for those who were receiving pensions before 1995, after adjustment, if the benefit level is lower than 3.2 million VND/month, the adjustment will increase by 0.3 million VND/month, if the benefit level is from 3.2 million VND/month to less than 3.5 million VND/month, the adjustment will be equal to 3.5 million VND/month.

The Government also proposed to adjust the preferential allowance for meritorious people according to the standard allowance level from VND 2,055 million to VND 2,789 million/month (an increase of 35.7%, 5.7% higher than the 30% salary increase for civil servants; in 2023, the adjusted preferential allowance for meritorious people will also be 5.7% higher than the basic salary increase); maintaining the current correlation between the preferential allowance levels for meritorious people compared to the standard allowance level.

At the same time, adjust social allowance according to the social assistance standard from 360 thousand VND to 500 thousand VND/month (increase 38.9%).

The Government proposes to allow the expansion of the scope of using the accumulated salary reform resources of the central and local budgets to spend on adjusting pensions, social insurance benefits, preferential benefits for people with meritorious services, social subsidies, social security policies and streamlining payrolls.

Minister of Home Affairs Pham Thi Thanh Tra said that on May 31, the Party Committee of the Ministry of Home Affairs submitted Document No. 46-TTr/BCSĐ to the Politburo for consideration and comments on the contents of salary reform; adjustment of pensions, social insurance benefits, preferential benefits for people with meritorious services and social benefits from July 1, 2024.

Among them, clearly report the political and legal bases, viewpoints, principles and determine the specific contents of the new wage regime according to the requirements of Resolution 27; at the same time, adjust pensions, social insurance benefits, preferential benefits for meritorious people and social benefits according to the principles of Resolution 28 and current legal regulations to ensure consistency.

However, to fully and synchronously implement the contents of public sector salary reform according to Resolution 27, there are still difficulties and shortcomings. To resolve these difficulties and shortcomings (if fully implementing the contents of public sector salary reform according to Resolution 27), it is necessary to study carefully, thoroughly, comprehensively and to amend many documents of the Party and related laws (especially policies related to basic salary levels).

After many meetings of the Steering Committee for Wage Reform and the Government Standing Committee, relevant ministries and branches; based on the Conclusion of the Politburo at the meeting on June 19, 2024, the Government proposed solutions to implement the adjustment of wages, pensions, social insurance benefits, preferential allowances for meritorious people and social allowances in the direction of, for the enterprise sector, adjusting the regional minimum wage (monthly and hourly) according to the provisions of the Labor Code (increased by 6% applied from July 1, 2024); regulating the wage mechanism for state-owned enterprises.

For the public sector, implementing Resolution 27 in a step-by-step, reasonable, cautious and feasible manner. Implementing 4/6 contents of public sector salary reform in Resolution No. 27-NQ/TW is clear and eligible for implementation, including the addition of a bonus regime from July 1, 2024 (bonus fund equal to 10% of the basic salary fund).

During the time when the conditions for abolishing the basic salary and salary coefficient are not met, the solution to adjust the basic salary from the current VND 1.8 million to VND 2.34 million/month (an increase of 30%) will be implemented from July 1, 2024.

During the time when the conditions for implementing the 9 new allowances are not met, continue to implement the current allowances.

At the same time, adjusting pensions, social insurance benefits, preferential allowances for meritorious people and social allowances. The proposal to reform enterprise sector wages; increase wages (30%) and supplement the bonus fund (10% of basic salary) of the public sector; clarify the salary and income management mechanism for administrative agencies and public service units; adjust pensions, social insurance benefits, preferential allowances for meritorious people and social allowances from July 1 as mentioned above is the most feasible and best solution in the context of not having enough conditions to abolish the current basic salary and salary coefficient (not yet implementing new salary tables and allowances), bringing positive impacts.

The business sector fully implemented the contents of Resolution 27; the public sector implemented 4/6 contents of Resolution 27, and at the same time achieved the target of increasing salaries from July 1, 2024 as required by the Party (Conclusion No. 64-KL/TW of the 8th Central Conference, 13th tenure) and the National Assembly (Resolution No. 104/2023/QH15).

This also has a positive impact on many groups of people in society, creating a good and very large effect in society. Retirees, beneficiaries of benefits, regimes and policies associated with the basic salary are all adjusted to increase correspondingly with the salary increase of civil servants, in accordance with the requirements of Resolutions 27, 28, 42-NQ/TW and relevant legal regulations.

This will ensure a balanced, harmonious, fair and equal relationship between beneficiaries of salaries, allowances and policies related to the basic salary level, creating a great consensus in society.

Preliminary synthesis shows that the salary increase affects about 18 million people receiving social insurance; over 50 million people receiving health insurance support from the state budget; about 16 million students; and about 30 million people related to support policies from the Resolution of the Provincial People's Council.

The increase in the basic salary from the current VND 1.8 million to VND 2.34 million/month (30%) is the highest increase ever, contributing to improving the lives of wage earners and beneficiaries of allowances, subsidies and support policies associated with the basic salary; creating motivation to improve productivity and work efficiency, contributing to social stability, demonstrating the Party and State's concern for cadres, civil servants, public employees, armed forces and beneficiaries of allowances and subsidies in the context of the country's many difficulties. At the same time, contributing to social progress and justice, ensuring socio-political stability.