The 2024 Social Insurance Law clearly stipulates the principles of pension adjustment, in which special attention is paid to the group of cadres, civil servants, public employees (CBCCVC) and workers with low pensions, retiring before 1995. This is a group that often has lower benefits than those who retire in the later stages, leading to a large difference in retirement income.
According to Article 67 of the Law on Social Insurance 2024, pension adjustment is based on a number of basic principles. Specifically:
The adjustment is based on the increase in the consumer price index (CPI) and must be consistent with the state budget capacity as well as the social insurance fund.
The State prioritizes the appropriate adjustment of pension increases for those with low pensions and those who retired before 1995, to narrow the gap between retirement groups at different periods.
Notably, Clause 3, Article 67 stipulates: The Government stipulates the time, subjects, and level of pension adjustment.
This means that the Government is the competent authority to decide on the time to apply pension increases, including for civil servants, public employees and workers with low pensions, retiring before 1995.
Thus, to know exactly when the pension increase will be implemented, beneficiaries will need to base on a decree or decision issued by the Government according to the provisions of the Law on Social Insurance 2024.
