Submit to the Government to increase pensions and social insurance benefits from July 1

May 19, 2023 18:57

Pensions, social insurance benefits and monthly allowances will increase by 12.5-20.8% from July 1. It is expected that more than 3 million people will have their salaries and allowances adjusted up.

Pensions, social insurance benefits and monthly allowances will increase from 1.7 to

After consulting with ministries, sectors and the public, the Ministry of Labor, War Invalids and Social Affairs (MOLISA) has completed and submitted to the Government a draft decree to increase pensions, social insurance benefits and monthly allowances from July 1.

Groups that are adjusted to increase pensions, social insurance allowances, and monthly allowances include: Cadres, civil servants, workers, public employees, and laborers (including those participating in voluntary social insurance, Nghe An farmers' social insurance fund); soldiers, police, and people working in secret services who are receiving monthly pensions; commune/ward/town cadres who are receiving monthly pensions and allowances; people who are receiving monthly allowances for loss of working capacity, rubber workers who are receiving monthly allowances; soldiers and police who participated in the resistance war against the US to save the country for less than 20 years, performed international missions after April 30, 1975, were demobilized, and are receiving monthly allowances; people who are receiving monthly allowances for work-related accidents and occupational diseases; people who are receiving monthly death benefits before January 1, 1995.

Compared to the previous draft for comments, in the draft submitted to the Government, the Ministry of Labor, War Invalids and Social Affairs has added a group that will be adjusted to increase pensions and allowances, when adding the group: People receiving monthly allowances for work accidents and occupational diseases.

The draft decree proposed by the Ministry of Labor, War Invalids and Social Affairs, from July 1, 2023, will increase salaries by 12.5% for those receiving pensions, social insurance benefits and monthly allowances; increase by 20.8% for those receiving pensions and monthly allowances who have not received a salary increase since January 1, 2022 (retiring after the date of the most recent pension increase adjustment).

After the pension increase according to the above general levels, those who received pensions, social insurance benefits, and monthly benefits before January 1, 1995, if their salary was less than 3 million VND/month, will be adjusted to increase. Those whose pensions after the increase were less than 2.7 million VND/month will be increased by 300,000 VND/month; those whose salaries were from 2.7 million VND to less than 3 million VND/month will be increased to compensate for the shortfall to get 3 million VND/month.

The Ministry of Labor, War Invalids and Social Affairs explained that the pension increase from July 1, 2023 is to match the time of increasing the basic salary; the National Assembly has passed a resolution to increase 12.5% of pensions and social insurance benefits for those guaranteed by the state budget and provide additional support for those who retired before 1995 with low benefits.

Explaining the above increases in pensions, social insurance benefits, and monthly allowances, the Ministry of Labor, War Invalids and Social Affairs said that Resolution 69/2022 of the National Assembly approved a plan to increase pensions and monthly allowances by 12.5% for groups guaranteed by the state budget.

According to the Law on Social Insurance, when the basic salary increases from July 1, some regimes will also be adjusted to increase accordingly. With the increase in the basic salary to 1.8 million VND/month (an increase of 20.8% compared to the current level), it means that people who retire and receive social insurance benefits after July 1 will have a higher pension calculation than those who retired before.

At the same time, on January 1, 2022, pensions were adjusted to increase by 7.4%, but the basic salary was not increased, so the group retiring after this time until before the basic salary increase (from January 1, 2022 to June 30, 2023) had lower pensions than those retiring before, even though they had the same calculation conditions, and lower than those retiring after July 1, 2023 (because the basic salary also increased at this time, so the level of calculating the regime increased accordingly). Therefore, it is necessary to adjust the additional increase for the group retiring from January 1, 2022 to June 30, 2023, to ensure correlation and fairness between retirement times.

Regarding the additional adjustment for the pension group under 3 million VND/month, the Ministry of Labor, War Invalids and Social Affairs said that the group of retirees, those who stopped receiving benefits and allowances before January 1, 1995, were mostly due to loss of working capacity, so their working time was short, and their pension and allowance levels were low compared to the general level. The additional adjustment for this group is a preferential policy of the state for those who have worked and contributed (in the state sector before 1995).

The Ministry of Labor, War Invalids and Social Affairs calculated that after increasing pensions, monthly social insurance benefits, and monthly allowances, the state budget will spend an additional VND2,662 billion for the last 6 months of this year, with more than 891,000 people being adjusted. The social insurance fund will spend an additional VND9,675 billion for the last 6 months of this year to increase salaries for more than 2.17 million people.

For the group of people who retired and received pensions and benefits before January 1, 1995, with a benefit level of less than 3 million VND/month, it is expected that more than 236,000 people will receive an increase, and the state budget is expected to spend more than 272 billion VND for the last 6 months of the year.

The total additional budget for the adjustment of pensions, social insurance benefits, and monthly allowances from July 1 (until the end of the year) is over VND12,600 billion. Of which, the state budget increased by more than VND2,982 billion, and the social insurance fund increased by more than VND9,675 billion.

According to Vietnam+