Pensions, social insurance allowances, monthly allowances all increase
The Ministry of Home Affairs issued Circular No. 14/2026/TT-BNV detailing the adjustment of pensions, social insurance allowances and monthly allowances according to Decree No. 162/2026/ND-CP of the Government.
According to the Circular, from July 1, 2026, the pension, social insurance allowance and monthly allowance levels of subjects currently receiving benefits before July 1, 2026 will be adjusted to increase by 8% compared to the level of June 2026.
For people retiring to receive pensions, social insurance allowances or monthly allowances before January 1, 1995, after being adjusted to increase by 8% but the benefit level is still low, the Circular stipulates further adjustments to ensure the lives of beneficiaries.
Specifically, people with a benefit level of 3.5 million VND/month or less will receive an additional 300,000 VND/month; people with a benefit level above 3.5 million VND/month but below 3.8 million VND/month will be increased to 3.8 million VND/month.
The Circular also stipulates the monthly survivor's allowance and service allowance for subjects currently receiving benefits before July 1, 2026, which are calculated according to the base salary level specified in Decree No. 161/2026/ND-CP of the Government.
The Circular assigns Vietnam Social Security to organize the implementation, summarize the adjustment results and report to the Ministry of Home Affairs and the Ministry of Finance before December 31, 2026.
The People's Committees of provinces and centrally-run cities are responsible for directing relevant agencies to inspect and urge the implementation.
Circular No. 14/2026/TT-BNV takes effect from July 1, 2026. When the Circular takes effect, Circular No. 06/2023/TT-BLĐTBXH expires.
The pension gap is gradually narrowing
Previously, the Government had repeatedly increased pensions, prioritizing people with low pensions to gradually narrow the gap between generations.
On December 7, 2021, the Government issued Decree 108/2021/ND-CP deciding to increase pensions from January 1, 2022. Accordingly, from this time, the pension level, social insurance allowances and monthly allowances of beneficiaries will increase by 7.4%.
This is also the first time the Government has applied a second pension increase measure for people retiring before January 1, 1995.
This policy is proposed to be implemented to help improve pensions for workers retiring before 1995 because this is a group with a very low average pension, narrowing the benefit level between generations of retirees, and at the same time contributing to raising the "bottom" of pensions.
In this increase, after implementing a general adjustment of 7.4%, if these people still have pensions, social insurance allowances, and monthly allowances below 2,500,000 VND/month, they will be increased for the second time, according to 2 groups.
First, increase by 200,000 VND/person/month for people with pensions, social insurance allowances, and monthly allowances from 2,300,000 VND/person/month or less.
Second, increase to 2,500,000 VND/person/month for people with pensions, social insurance allowances, and monthly allowances from 2,300,000 VND/person/month to less than 2,500,000 VND/person/month.
Next, the Government adjusted to increase pensions, social insurance allowances and monthly allowances from July 1, 2023 according to 2 groups.
First, an increase of 12.5% on the pension level, social insurance allowance and monthly allowance of June 2023 for those who are receiving pensions and allowances and have been increased pensions from January 1, 2022 according to Decree 108/2021/ND-CP.
Second, an additional 20.8% increase on the pension level, social insurance allowance and monthly allowance of June 2023 for those who are receiving pensions and allowances and have not been increased pensions from January 1, 2022 according to Decree 108/2021/ND-CP.
At the same time, the operating agency continues to raise pensions for the second time for those who retired before January 1, 1995. Specifically, after a general adjustment, if the benefit level is still lower than 3,000,000 VND/month, it will be adjusted to increase for the second time according to 2 groups.
First, increase by 300,000 VND/person/month for people with a benefit level below 2,700,000 VND/person/month.
Second, increase to 3,000,000 VND/person/month for those with a benefit level from 2,700,000 VND/person/month to less than 3,000,000 VND/person/month.
On June 30, 2024, the Government adjusted to increase an additional 15% on the pension level, social insurance allowance and monthly allowance of June 2024 from July 1, 2024.
For those who retired before January 1, 1995, after adjusting to increase by 15% and the benefit level is lower than 3,500,000 VND/month, they are adjusted to increase for the second time according to 2 groups.
First, increase by 300,000 VND/person/month for people with a benefit level below 3,200,000 VND/person/month.
Second, increase to 3,500,000 VND/person/month for those with a benefit level from 3,200,000 VND/person/month to less than 3,500,000 VND/person/month.
Thus, after many times of implementing the pension increase policy, the pension gap between retirees before 1995 and later generations has gradually narrowed. At the same time, the average pension level has also increased year by year.
