The Ministry of Justice is currently appraising a draft decree, developed by the Ministry of Home Affairs, to adjust pensions, social insurance benefits, and monthly allowances. The policy is expected to take effect from 1/7, coinciding with the adjustment of the basic salary.

According to the draft, all beneficiary groups will receive an 8% increase based on their current benefits. These groups include: pensioners who are cadres, civil servants, public employees, workers, armed forces personnel, and those in cryptography; commune-level cadres and non-specialized workers; individuals receiving disability allowances; those receiving occupational accident and disease benefits; individuals receiving monthly survivor benefits; and several other groups currently receiving monthly allowances.

For individuals receiving pensions or benefits before 1/1/1995, the drafting agency proposes adjustments to reach a monthly level of 3,8 million dong. Those currently receiving less than 3,5 million dong will receive an additional 300.000 dong per month. Individuals receiving between 3,5 million dong and less than 3,8 million dong will have their benefits raised to 3,8 million dong.

The total additional cost compared to 2025 is estimated to be nearly 10.800 billion dong. Of this, the state budget will cover over 2.000 billion dong, with the remaining approximately 8.760 billion dong sourced from the Social Insurance Fund.

Elderly residents of Hanoi cycle along West Lake. Photo: Hoang Giang.

Elderly residents of Hanoi cycle along West Lake. Photo: Hoang Giang.

Previously, in the March draft, the Ministry of Home Affairs presented two options. One option divided beneficiaries into two groups with different increases: 4,5% plus 200.000 dong, and an 8% increase. The other option was a uniform 8% increase for all.

According to the roadmap, in 2026, the retirement age will increase to 61 years and six months for men and 57 years for women, leading to corresponding increases in pension eligibility conditions. From 1/7/2025, the minimum social insurance contribution period required for pension eligibility will decrease from 20 years to 15 years.

Statistics as of 7/2025 indicate that approximately 2,4 million people are currently receiving pensions, social insurance benefits, and monthly allowances ranging from 3 million to 10 million dong, accounting for 80% of all beneficiaries. The average pension funded by the state budget is about 5,7 million dong per month, while monthly allowances are around 2,2 million to 2,5 million dong. The average pension from the Social Insurance Fund reaches 6,7 million dong, whereas commune-level cadres receive an average of about 2,7 million dong per month.

Hong Chieu