The Ministry of Finance estimates that the increase in pensions, social insurance benefits, etc. will cost a total of VND17,276 billion, exceeding the balance capacity of the 2024 State budget estimate.
The total cost of the plan to increase pensions, subsidies... exceeds the balance capacity of the 2024 State budget estimate. Illustrative photo.
The Ministry of Finance has just sent an official dispatch to the Ministry of Labor, War Invalids and Social Affairs to assess the impact of the new wage policy from July 1 on the implementation of social insurance policy.
The Ministry of Finance said that according to preliminary estimates, the need for state budget funding in 2024 will increase compared to the state budget expenditure estimate for 2024 assigned by competent authorities to implement the proposed plan of the Ministry of Labor, War Invalids and Social Affairs, which is to increase pensions and social insurance benefits by 15%; increase preferential allowances for people with meritorious services by 29.2% (from VND 2,055,000 to VND 2,655,000); and increase social allowances by 38.9% (from VND 360,000 to VND 500,000).
With the above increase, the total payment cost is 17,276 billion VND, exceeding the balancing capacity of the 2024 State budget estimate decided by the National Assembly at a maximum of 7,430 billion VND.
Therefore, the Ministry of Finance requests the Ministry of Labor, War Invalids and Social Affairs to review and recalculate specific adjustment options to ensure compliance with the principles and legal basis prescribed for the need to implement the plan to adjust pensions and social insurance benefits from July 1, 2024 for those who retired before January 1, 1995, guaranteed by the State Budget.
According to the Ministry of Finance, there are currently many social insurance and health insurance regimes stipulated in the Law on Social Insurance, the Law on Labor Safety and Hygiene, the Law on Health Insurance; some social security regimes (policy scholarships, support for study costs for some students stipulated in the Lawon Education ...)
When implementing public sector salary reform from July 1, 2024, it will directly impact social insurance, health insurance, and student benefits, because there will no longer be regulations on basic salary.
However, as of July 1, 2024, the Law on Social Insurance, the Law on Occupational Safety and Hygiene, the Law on Health Insurance, and the Law on Education are still in effect and have no replacement documents.
Therefore, to ensure legality and consistency in implementation, the Ministry of Finance has requested the Ministry of Labor, War Invalids and Social Affairs to preside over and coordinate with the Ministry of Health, the Ministry of Education and Training... to review and research to report to the Government to submit to the National Assembly at the May 2024 session.
The Ministry of Finance also said that in the difficult conditions of balancing the central budget, the resources for adjusting pensions and some social security and subsidy policies are very limited, while some localities continue to have large surpluses for salary reform.
Therefore, in order to proactively adjust policies and reduce pressure on central budget allocation to support localities, the Ministry of Finance proposes that the Ministry of Labor, War Invalids and Social Affairs report to competent authorities, allowing the use of accumulated salary reform resources of the central budget, and surplus salary reform resources of localities, after ensuring sufficient salary reform needs, to be used to implement pension adjustments and the above-mentioned allowances.
According to VNA
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