Article 1 of Decree 75/2024/ND-CP stipulates that Decree 75 adjusts the pension level for subjects receiving pension before July 1, 2024 with the adjustment level specified in Article 2 of Decree 75/2024/ ND-CP as follows:
Time and level of adjustment
1. From July 1, 2024, an increase of 15% on the pension, social insurance allowance and monthly allowance of June 2024 for the subjects specified in Clause 1, Article 1 of this Decree.
2. From July 1, 2024, people who are receiving pensions, social insurance benefits, and monthly benefits according to the provisions of Clause 2, Article 1 of this Decree, after adjusting according to the provisions of Clause 1 of this Article, If the benefit level is lower than 3,500,000 VND/month, it will be adjusted to increase as follows: Increase 300,000 VND/person/month for those with benefit level less than 3,200,000 VND/person/month; increased by 3,500,000 VND/person/month for those with benefits from 3,200,000 VND/person/month to less than 3,500,000 VND/person/month.
3. The level of pensions, social insurance benefits, and monthly benefits after adjustment according to the provisions of this Article is the basis for calculating adjustments to pensions, social insurance benefits, and monthly benefits in the following cases: next adjustment.
This is an increase for people retiring before July 1, 2024, and for those retiring after July 1, 2024, if their pension is lower than 3.5 million VND/month, there are currently no regulations on pension adjustment.
According to Article 56 of the Law on Social Insurance 2014, the pension level when paying compulsory social insurance is calculated according to the following formula:
Pension when paying compulsory social insurance = Benefit rate x Average monthly salary paid for compulsory social insurance.
From July 1, 2024, base salary increases by 30% compared to before according to Decree 73/2024/ND-CP and minimum salary increases by 6% according to Decree 74/2024/ND-CP. A salary increase will lead to an increase in the average monthly salary paid for social insurance, from which the pension benefit after July 1, 2024 will also increase.
