The Ministry of Home Affairs is currently drafting a decree to adjust pensions, social insurance benefits, and monthly allowances. This initiative coincides with a planned increase in the base salary, which is set to rise from 2,34 million VND to 2,53 million VND per month. The ministry has put forth two distinct proposals for increasing pensions and allowances, both slated to take effect from 1/7.

Option one suggests an increase of 4,5% plus an additional 200,000 VND per month to the existing pension, social insurance benefits, and monthly allowances. This adjustment applies to several beneficiary groups, including: officials, civil servants, public employees, workers, armed forces, and cipher personnel currently receiving monthly pensions; communal officials and non-specialized communal, hamlet, and residential group staff; individuals receiving monthly disability allowances; communal officials currently receiving monthly allowances; armed forces personnel who served less than 20 years, have been demobilized, returned to their localities, and are currently receiving monthly allowances; and cipher personnel currently receiving allowances.

Elderly residents of Hanoi receive their pensions at a payment point. Photo: Phong Linh

Under option one, an 8% increase is proposed for three specific groups: those receiving occupational accident and disease benefits; those receiving monthly survivor benefits before 1/1/1995; and workers who do not meet the conditions for a pension and are not yet old enough for a social retirement allowance but are currently receiving a monthly allowance.

For individuals who began receiving pensions or allowances before 1/1/1995, the proposal is to adjust their payments to reach 3,8 million VND per month. Specifically, those receiving less than 3,5 million VND would see an increase of 300,000 VND per month. Those receiving between 3,5 million VND and less than 3,8 million VND would have their payments adjusted to reach exactly 3,8 million VND.

Option two proposes a universal 8% increase to the existing pension, social insurance benefits, and monthly allowances for all current beneficiaries. Under this option, individuals who began receiving benefits before 1995 would also have their payments adjusted to reach 3,8 million VND per month.

Looking ahead, the retirement age is set to increase in 2026, reaching 61 years and 6 months for men and 57 years for women. Correspondingly, the conditions for pension eligibility will also be raised in line with these ages. From 1/7/2025, the mandatory social insurance participation period will be reduced from 20 years to 15 years for retirement eligibility.

Across the country, 3,5 million individuals currently receive pensions, social insurance benefits, or monthly allowances. Between 1995 and the end of 2024, the National Assembly and the government have adjusted pensions 24 times. The average monthly pension for beneficiaries from the Social Insurance Fund, including armed forces personnel, is 7 million VND. Pensions are based on a contribution-benefit principle, factoring in the average social insurance contributions and years of participation. This system results in some individuals receiving hundreds of millions of VND, while others receive lower amounts, particularly those who retired before 1995.

Hong Chieu