According to the latest draft Decree adjusting pensions, social insurance allowances and monthly allowances, the Ministry of Home Affairs proposes from July 1, 2026, to adjust an additional increase of 8% on the pension, social insurance allowance and monthly allowance level of June 2026 for all beneficiaries.
People who are receiving pensions, social insurance allowances, monthly allowances after adjusting to increase by 8% and have a benefit level lower than 3.8 million VND/month are entitled to an additional increase of 300,000 VND/person/month for those with a benefit level equal to or lower than 3.5 million VND/person/month.
At the same time, the Ministry of Home Affairs also proposed to adjust to increase to 3.8 million VND/person/month for those who have a benefit level higher than 3.5 million VND/person/month but lower than 3.8 million VND/person/month.
This proposal is based on Conclusion No. 206-KL/TW of the Politburo on adjusting a number of types of allowances, base salary levels, pensions, social insurance allowances, monthly allowances (implementing adjustments according to the content of the Government Party Committee's submission).
This adjustment level ensures compensation for the increase in the consumer price index in 2026 and 2025.
Most recently, from July 1, 2024, pensions and allowances were increased by 15%, according to Decree No. 75/2024/ND-CP adjusting pensions, social insurance allowances and monthly allowances.
According to the summary report on law enforcement, the Ministry of Home Affairs assessed that the adjustment of pensions, social insurance allowances and monthly allowances at a fairly high level (15%) has helped increase the monthly amount of 3.4 million people. This contributes to stabilizing and improving the lives of people who are receiving pensions, social insurance allowances and monthly allowances.
The additional adjustment for those retiring before 1995 has helped narrow the pension gap with those retiring after this year.
With the option of increasing the pension and allowance level by 8% for all beneficiaries, the drafting agency estimates that with the above pension and allowance adjustment plan, the additional cost compared to 2025 is 10,773 billion VND.
Of which, the additional funding for the state budget source is estimated at 2,013 billion VND; the additional funding for the Social Insurance Fund source is estimated at 8,760 billion VND.
The Ministry of Home Affairs believes that the adjustment of pensions at a high level in the past period, in addition to ensuring pension adjustment for retirees before the impact of the increase in the consumer price index, also stems from the reason that pension adjustment is associated with the adjustment of the base salary level.
Along with pensions, from July 1, the base salary is expected to increase from 2.34 million VND/month to 2.53 million VND/month, equivalent to an increase of about 8%.
This new base salary is expected to be applied from July 1, as a basis for calculating salaries, allowances and many other regimes for cadres, civil servants, public employees, and armed forces.
This adjustment also entails recalculating the deductions and benefits enjoyed according to the base salary, ensuring consistency with the new regulations.
In addition, the reserve difference coefficient (if any) is also recalculated according to the base salary of 2.53 million VND/month.
Talking to Lao Dong Newspaper, National Assembly delegate Pham Van Hoa (Dong Thap) said that the increase in the base salary is a joy for people working in the public sector. However, the delegate also expressed concern about the spillover effect of the increase in the base salary on the market price level.
The delegate pointed out the reality that each time the base salary is adjusted, the prices of many essential goods and living services tend to increase accordingly. This puts significant pressure on the non-state sector, especially freelancers and low-income people.
From there, the delegate proposed that the Government have fundamental solutions to curb inflation and ensure social security.
