Youme Law Firm LLC said that, based on Article 57 of the 2014 Law on Social Insurance, it is stipulated as follows:
Pension adjustment
The Government regulates pension adjustments based on the increase in the consumer price index and economic growth in accordance with the state budget and social insurance fund.
Accordingly, currently, pension adjustments will be regulated by the Government based on the increase in the consumer price index and economic growth in accordance with the state budget and social insurance fund.
From July 1, 2024, the pension has been adjusted to increase by 15% on the monthly pension of June 2024 for 09 groups of subjects specified in Clause 1, Article 1 of Decree 75/2024/ND-CP. Of which, 7 groups of subjects specified in Points a, b, c, d, dd, e and g, Clause 1, Article 1 of Decree 75/2024/ND-CP who retired before January 1, 1995, after adjusting the pension to increase by 15% on the pension of June 2024, with a benefit level lower than VND 3,500,000/month, will be adjusted to increase the pension further.
From July 1, 2025, the Social Insurance Law 2024 will take effect, replacing the Social Insurance Law 2014, and will have a new pension increase policy applied as follows:
* For participants of compulsory social insurance:
Pursuant to Article 67 of the Law on Social Insurance 2024, it is stipulated as follows:
Pension adjustment
1. Pensions are adjusted based on the increase in the consumer price index in accordance with the capacity of the state budget and social insurance fund.
2. Adjust the pension increase appropriately for those with low pension levels and those who retired before 1995 to ensure narrowing the pension gap between retirees in different periods.
3. The Government shall prescribe the time, subjects and levels of pension adjustment prescribed in this Article.
Accordingly, the pension increase will be adjusted appropriately for those with low pensions and those who retired before 1995, ensuring that the pension gap between retirees in different periods is narrowed.
* For voluntary social insurance participants
Pursuant to Clause 2, Article 99 of the Law on Social Insurance 2024, it is stipulated as follows:
Monthly pension
YOUTH: ....
2. Pension adjustment is carried out in accordance with the provisions of Article 67 of this Law.
YOUTH: ....
Accordingly, pension adjustment for voluntary social insurance participants is carried out similarly to the regulations for compulsory social insurance participants.
Thus, from July 1, 2025, the Social Insurance Law 2024 will take effect, stipulating that the pension increase will be adjusted appropriately according to the new policy for those with low pensions and those who retired before 1995 to ensure narrowing the pension gap between retirees in different periods.
The finalization of pension increases under the new policy to reduce pension differences must be based on the increase in the consumer price index and must ensure compliance with:
- State budget capacity.
- The capacity of social insurance funds.
