The highest pensioner in the country receives 60 times the basic salary.

The person with the highest pension in the country currently receives over 140 million VND per month, an amount nearly 60 times higher than that of someone receiving the basic salary of 2.34 million VND per month.

Mr. PPNT in Ho Chi Minh City currently holds the highest pension in the country. After the pension rate was adjusted upwards by 15% from July 1, 2024, his pension increased from 124 million to 140 million VND per month.

Mr. PPNT's current pension is 60 times higher than that of someone receiving a pension based on the basic salary of 2.34 million VND/month.

The reason Mr. PPNT's pension is so high is because before 2007, the regulations for calculating social insurance contributions were based on actual wages (without the current ceiling limit), and Mr. T.'s average social insurance contribution at times exceeded 200 million VND/month, resulting in such a high pension.

Pensions are being continuously adjusted to ensure a decent standard of living for workers in their old age. (Illustrative photo: Chi Hieu)

Since the Social Insurance Law of 2006 came into effect, stipulating that the maximum monthly salary for mandatory social insurance contributions is 20 times the basic salary, the possibility of those contributing to mandatory social insurance receiving pensions of hundreds of millions of dong per month has ceased.

Specifically, the current base salary is 2.34 million VND, and with a contribution ceiling equal to 20 times the base salary, the highest contribution would only be 46.8 million VND per month. Therefore, if employees contribute to social insurance at the highest level until they reach retirement age, ensuring they receive the maximum pension of 75% (30 years for female workers, 35 years for male workers), there will no longer be a significant disparity in pension amounts between those receiving lower pensions.

Calculating pensions based on the entire period of social insurance contributions is appropriate.

According to Vietnam Social Security, the regulation setting the salary ceiling for social insurance contributions at 20 times the base salary will create a common ground with a relatively small gap between pensioners; those who participate at the maximum level for a long time will still be guaranteed a high pension.

Along with adjusting the social insurance contribution ceiling to no more than 20 times the basic salary, adjusting the pension calculation method (from calculating the average of the last 5 years to calculating the entire social insurance contribution period) is consistent with the salary reform policy and ensures the rights of workers.

In particular, with the increase in public sector salaries, calculating the entire period of employment according to the new Social Insurance Law of 2024 is appropriate.

The regulation of pension levels based on the pension entitlement rate and the average salary used as the basis for social insurance contributions throughout the entire contribution period is consistent with the principle of contribution and benefit.

Pensions are being adjusted repeatedly.

With pensions continuing to be adjusted based on the increase in the consumer price index, in line with the capacity of the State budget and the Social Insurance Fund, pension levels will ensure a decent standard of living for workers in their old age.

From 1995 to the end of 2023, Vietnam adjusted pensions 23 times. After these adjustments, the pensions of retirees have now increased from 21 to 26 times compared to the pension levels in 1995.

From July 1, 2024, the Government implemented an adjustment to increase pensions, social insurance benefits, and monthly allowances by 15% based on the June 2024 rates for those currently receiving pensions or allowances.

This adjustment is nearly double the average upward adjustment of the 2013-2023 period, much higher than the combined increase in the consumer price index and economic growth. In 2023, the increase in the consumer price index was 3.25%, economic growth was 5.05%, and it is estimated that in 2024 the CPI will be between 4%-4.5%, and GDP between 6%-6.5%.

This is the government's effort to balance resources in order to improve pension levels, social insurance benefits, and monthly allowances, in accordance with the Social Insurance Fund's balancing capacity.

Source: https://vietnamnet.vn/luong-huu-nguoi-cao-nhat-ca-nuoc-gap-60-lan-luong-co-so-2344961.html