Proposal to add new beneficiaries to the 8% pension increase roadmap expected from July 1

The Ministry of Justice is appraising the draft Decree adjusting pensions, social insurance (SI) allowances and monthly allowances developed by the Ministry of Home Affairs.

Accordingly, the drafting agency proposed to increase equally by 8% for beneficiary groups from July 1, at the same time as adjusting the base salary.

With an adjustment of 8%, the total estimated additional budget compared to 2025 is nearly 10,800 billion VND. Of which, the state budget ensures more than 2,000 billion VND, and the remaining part is about 8,760 billion VND from the Social Insurance Fund.

A noteworthy point in this draft is that the drafting agency has added a new group to the 8% pension increase roadmap from July 1st, which are people who are receiving monthly allowances as prescribed in Article 23 of the 2024 Law on Social Insurance.

This group of workers participates in social insurance until retirement age but does not meet the conditions to enjoy it, and has not yet reached the age to receive social pension, choosing to receive monthly allowances from their contributions to the Fund. The condition is that the person does not withdraw once and does not preserve the contribution period.

In 2026, the benefit age for this group for men is 61 years and 6 months, women are 57 years old and have paid social insurance for less than 15 years. The current lowest benefit level is 500,000 VND - equal to social pension allowance.

Current law stipulates that the benefit period is calculated from the month when the worker reaches retirement age, and has a written request to receive monthly allowances until they reach 75 years old.

The number of months to receive benefits is based on the contribution period and the base salary participating in social insurance. In addition to allowances, beneficiaries are paid health insurance by the state budget.

Allowances are adjusted when the Government increases pensions.

Thus, the expected beneficiary groups include: cadres, civil servants, public employees, laborers, soldiers, people's police and people working in cryptography who are receiving pensions; commune, ward, town cadres and non-specialized commune-level personnel who are receiving pensions and monthly allowances; people receiving unemployment benefits; rubber workers who are receiving allowances; soldiers participating in the anti-American resistance war for national salvation who have been demobilized for less than 20 years of service; police participating in the anti-American resistance war who have been demobilized for less than 20 years of service; people participating in the armed forces, working in cryptography who had performed international duties after April 30, 1975 and have been demobilized; people who are receiving work accident and occupational disease allowances; people who received death benefits before 1995; social insurance contributors who are receiving monthly allowances under 75 years old.