Consider increasing the reference level for calculating social insurance benefits

The reference level provision is appropriate.

Resolution 27-NQ/TW states that the current basic salary and salary coefficient will be abolished and the basic salary will be established using a specific amount in the new salary table. Therefore, when designing the new salary table from July 1, the basic salary will be abolished.

To replace the basic salary, the draft revised Law on Social Insurance has proposed a new salary as a reference level to be used as a basis for calculating social insurance benefits.

The Draft Law states that the reference level is the amount of money prescribed by the Government to calculate the contribution and benefit levels of some social insurance regimes in this Law. The reference level is adjusted based on the increase in the consumer price index, economic growth and in accordance with the capacity of the State budget and the social insurance fund.

Delegate Nguyen Thi Viet Nga (Photo: National Assembly).

Thus, the reference level has been clearly defined in the draft Law. This is the amount of money prescribed by the Government to calculate the contribution and benefit levels of some social insurance regimes, which have an impact on pensions.

Discussing the draft revised Law on Social Insurance, delegate Nguyen Thi Viet Nga (Hai Duong delegation) said that the reference level prescribed by the Government to calculate the contribution and benefit levels of the insurance regime is very timely and in line with the salary reform in July.

According to the delegate, some requirements on reference levels given on consumer price index and economic growth are also very appropriate.

However, to ensure the rights of beneficiaries of insurance policies, delegate Viet Nga said that the time should be considered to adjust the reference level in the law.

"Regulating the periodic adjustment of the reference level will enhance the responsibility of agencies and ensure regular and timely consideration of social insurance benefits of beneficiaries.

When the periodic adjustment deadline comes, we can consider adjusting accordingly, it could be higher, it could be lower, but it could also be the same as the current payment level," delegate Viet Nga said.

It is not difficult to solve the pension gap

On the other hand, when thoroughly reforming the salary regime, the salaries of cadres, civil servants, public employees, and workers paid by the budget will not be based on the coefficient system multiplied by the basic salary but will be calculated according to the job position, ensuring that they are higher than the current basic salary.

At that time, the monthly salary used as the basis for social insurance contributions of employees with salary regimes prescribed by the State after July 1 will increase compared to the monthly salary used as the basis for social insurance contributions before July 1.

When the monthly salary used as the basis for social insurance contributions increases, the average monthly salary used for social insurance contributions of the group retiring after July 1 will certainly be higher than that of the group retiring before this date, leading to higher pensions.

Many opinions are concerned about the difference in pensions before and after salary reform (Photo: Son Nguyen).

Explaining this issue, Minister of Labor, War Invalids and Social Affairs Dao Ngoc Dung said that the reference level is a new concept built to replace the current basic salary.

"What is the reference level actually? It is calculated based on economic growth, CPI and in practice, as well as revenue and expenditure. The reference level replaces the basic salary, but in essence there is no problem," the Minister explained.

According to the Minister, if the current basic salary of 1.8 million VND is not abolished in the coming time, the reference level will continue to be this level. After the implementation of Resolution 27, the general salary level will increase by several dozen percent, then that will be the reference level.

Regarding the issue of pension differences before and after July 1 as many opinions are concerned, Minister Dao Ngoc Dung said that this problem is not difficult to solve.

The drafting agency has already handled this issue with Decree 42/2023/ND-CP. The principle is that those who receive pensions after July 1 with high benefits will only be adjusted according to the CPI (consumer price index). The rest, those who retire before July 1 will be calculated based on the CPI, economic growth and pension fund growth.

Source: https://dantri.com.vn/an-sinh/xem-xet-viec-tang-muc-tham-chieu-de-tinh-cach-che-do-bao-hiem-xa-hoi-20240601110129606.htm