Submit to the Government to increase pensions and benefits by 12.5-20.8%

Pensions and benefits are expected to increase by 12.5-20.8% for retirees and monthly beneficiaries from July 1, according to the proposal of the Ministry of Labor, War Invalids and Social Affairs.

This agency has just completed a submission to the Government on a Decree adjusting pensions, social allowances, and monthly allowances after two months of collecting opinions from ministries and branches. The submission added groups receiving occupational accident and disease allowances and monthly death allowances before 1995 to ensure equality with those receiving allowances after that time.

Pensions and allowances are expected to increase at the same time as the basic salary is adjusted to 1.8 million VND from July 1.

Post office staff instructing on payment of benefits to seniors over 80 years old, April 2021. Photo: Ha Ngoc

The Ministry of Labor, War Invalids and Social Affairs proposed a 12.5% increase for those receiving pensions, social insurance benefits and monthly allowances. This increase is based on the increase in the consumer price index and economic growth and has been approved by the National Assembly.

The 20.8% rate (same increase as the basic salary) applies to pensioners and beneficiaries who have not had their salaries increased from January 1, 2022 to before June 30, 2023, that is, those who retire after the most recent pension increase date. The reason is that in 2022, pensions and benefits will increase by 7.4% but the basic salary will not increase, so this group will suffer and receive less than those who retired before that time. This rate also applies to those who were receiving monthly occupational accident and disease benefits and death benefits before 1995.

After the adjustment, those who received pensions and benefits before 1995 with benefits lower than 3 million VND will be compensated to increase to 3 million VND per month. According to the Ministry of Labor, War Invalids and Social Affairs, most of the workers who retired before 1995 were in the group of workers who retired due to disability, had short working hours, and low salaries, so their pensions were also low, about 1.44 million VND per month. The increase is appropriate to recognize the contributions of those who worked in the state sector before 1995.

The total budget for increasing pensions and allowances is more than 12,600 billion VND by the end of 2023, of which the state budget spends nearly 3,000 billion VND and the Social Insurance Fund nearly 9,700 billion VND.

Hong Chieu

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