The new formula for calculating pensions and benefits officially takes effect from July 1st.

The Ministry of Interior has issued a circular guiding the adjustment of pensions and allowances from July 1st, corresponding to an 8% increase.

Pensioners and beneficiaries of allowances will receive an 8% increase starting July 1st (Illustrative image: Van Quan).

The Ministry of Interior has just issued Circular No. 14/2026/TT-BNV detailing the adjustment of pensions, social insurance benefits, and monthly allowances. The Circular takes effect from July 1st. This Circular provides guidance on the implementation of Government Decree No. 162/2026/ND-CP on the adjustment of pensions, social insurance benefits, and monthly allowances.

Accordingly, from July 1st, pensions, social insurance benefits, and monthly allowances will be adjusted upwards by 8% compared to the June levels.

Specifically, the pension, social insurance benefit, and monthly allowance from July onwards will be calculated as follows: Pension, social insurance benefit, and monthly allowance from June x 1.08.

In addition, groups of retirees receiving pensions, social insurance benefits, or monthly allowances before January 1, 1995, after the 8% increase adjustment, whose pensions, social insurance benefits, or monthly allowances are lower than 3.8 million VND/month, will be further adjusted in two ways.

Firstly , individuals whose pension, social insurance benefit, or monthly allowance, after the 8% adjustment, is equal to or less than 3.5 million VND/month, will receive an additional increase of 300,000 VND/month. The calculation formula is as follows: Pension, social insurance benefit, or monthly allowance from July = Pension, social insurance benefit, or monthly allowance after adjustment as stipulated in Clause 1, Article 2 of this Circular + 300,000 VND/month.

Secondly, individuals whose pension, social insurance benefits, or monthly allowances, after the 8% adjustment, are higher than 3.5 million VND/month but lower than 3.8 million VND/month, will have their pension/social insurance benefits/monthly allowances adjusted upwards to 3.8 million VND/month. The calculation formula is as follows: Pension, social insurance benefits, or monthly allowances from July = 3.8 million VND/month.

Furthermore, for those receiving monthly survivor's benefits or service allowances as stipulated by social insurance laws before July 1st, the monthly survivor's benefit amount from July 1st will be calculated based on the basic salary stipulated in Decree No. 161/2026/ND-CP regulating the basic salary and bonus regime for officials, civil servants, public employees, and the armed forces.

Currently, there are approximately 3.4 million people receiving pensions and benefits. With the above adjustments to pensions and benefits, the additional funding compared to 2025 will be 10,773 billion VND.

Source: https://baohatinh.vn/chinh-thuc-co-cong-thuc-moi-tinh-luong-huu-tro-cap-tu-17-post311638.html