The Ministry of Labor, War Invalids and Social Affairs received a petition from voters of Nga Son district (Thanh Hoa province) requesting to review and adjust the pension level for preschool teachers who retired in 2013. With the current price and living costs, such a pension level is too low, and the lives of the retired preschool teachers mentioned above face many difficulties.
The Ministry of Labor, War Invalids and Social Affairs said that according to the provisions of the law on social insurance (SI), the level of SI benefits is calculated based on the level of contribution and the period of SI contribution. Accordingly, the monthly pension of employees is calculated based on the monthly salary used as the basis for calculating SI contributions and the period of time the employee has paid SI. Thus, the pension level of employees is high or low depending on the period of contribution and the monthly salary of SI contributions of the employee while still working.
According to Article 57 of the 2014 Law on Social Insurance, pensions are adjusted based on the increase in the consumer price index and economic growth in accordance with the state budget and the Social Insurance Fund. In 10 years (2013-2023), the Government has adjusted pensions 7 times with an average increase of more than 8.43% per adjustment, higher than the increase in the consumer price index in the same period.
On May 23, 2018, the 12th Central Executive Committee issued Resolution No. 28-NQ/TW on reforming social insurance policies, which includes the following content: "The basic pension is adjusted mainly based on the increase in the consumer price index, the capacity of the Social Insurance Fund and the state budget".
On June 30, 2024, the Government issued Decree No. 73/2024/ND-CP regulating the adjustment of pensions, social insurance benefits and monthly allowances. Accordingly, from July 1, 2024, an additional 15% increase will be made to the pension, social insurance benefits and monthly allowances of June 2024 for those receiving pensions, social insurance benefits and monthly allowances. This adjustment level is twice as high as the average increase in the period 2013-2023. This demonstrates the concern of the Party, the State, and the Government's efforts in balancing resources to improve and ensure the lives of those receiving pensions, social insurance benefits and monthly allowances.
The Ministry of Labor, War Invalids and Social Affairs further informed that in the coming time, it will continue to coordinate with relevant ministries and branches to research and advise the Government when adjusting monthly pensions and social insurance benefits according to the provisions of the Law on Social Insurance and Resolution No. 28-NQ/TW.
