On May 22, the Ministry of Labor, War Invalids and Social Affairs (MOLISA) informed that, compared to the previous draft for comments, in the draft submitted to the Government, the MOLISA has added a group whose pension and allowances are adjusted to increase, when adding the group: People receiving monthly occupational accident and disease allowances.
The draft decree developed by the Ministry of Labor, Invalids and Social Affairs proposes that from July 1, 2023, salaries will increase by 12.5% for those receiving pensions, social insurance benefits and monthly allowances. An additional 20.8% will be increased 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 increasing pensions according to the above general levels, pensioners, social insurance benefits, and monthly benefits before January 1, 1995 with a salary of less than 3 million VND/month will be adjusted to increase.
Specifically, those with pensions under 2.7 million VND/month will receive an additional 300,000 VND/month; those with salaries from 2.7 million VND to under 3 million VND/month will receive an additional increase to make up the shortfall to 3 million VND/month.
The Ministry of Labor, Invalids and Social Affairs explains the proposal to increase pensions: According to the provisions of Clause 1, Article 3 of Resolution No. 69/2022/QH15, beneficiaries of pensions, social insurance benefits, and monthly allowances guaranteed by the State budget will be adjusted up by 12.5% and additional support will be provided for those who retired before 1995 with low benefits.
According to Article 57 of the Law on Social Insurance, pensions are adjusted based on the increase in the consumer price index and economic growth, in accordance with the capacity of the budget and the social insurance fund. And, from July 1, 2023, the basic salary will be adjusted from VND 1,490,000/month to VND 1,800,000/month (an increase of 20.8%).
This will increase the pension, social insurance benefits and monthly allowances of some people who retire from receiving pension, social insurance benefits and monthly allowances from July 1, 2023 onwards. Because the determination of pension, social insurance benefits and monthly allowances for some insurance regimes of the Law on Social Insurance is determined according to the basic salary level.
In addition, because in 2022, only pensions will be adjusted without adjusting the basic salary, employees who have paid social insurance according to the salary regime prescribed by the State when retiring and receiving monthly social insurance benefits from January 1, 2022 until before July 1, 2023 will receive 7.4% lower than those who retire before January 1, 2022 and those who retire from July 1, 2023 onwards.
The reason is that from January 1, 2022 to July 1, 2023, employees are not allowed to adjust their social insurance-paid salaries as a basis for calculating pensions and social insurance benefits. Because during this period, the basic salary has not been adjusted, but the pension, social insurance benefits and monthly benefits according to Decree No. 108/2021/ND-CP are not adjusted.
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