Could increase 2 times in a row
According to a report by Vietnam Social Security, there are currently about 3.55 million people receiving pensions and monthly social insurance allowances.
Currently, the Ministry of Home Affairs is finalizing a draft Decree on adjusting pensions, social insurance allowances and monthly allowances, expected to be applied from July 1, 2026.
According to the new draft being developed, low-income pensioners can be adjusted to increase their income up to 2 consecutive times, in order to improve their lives and narrow the gap between retirement generations.
A noteworthy point of the draft is the 2-step adjustment mechanism, which prioritizes supporting groups with low pensions.
1st increase: General adjustment for all beneficiaries
In the first adjustment, pensions will be increased according to one of two options:
An increase of 4.5% and an additional 200,000 VND/month for 7 groups of subjects according to regulations.
Or a simultaneous increase of 8% for all groups of beneficiaries.
This is a basic increase, widely applied to retirees nationwide.
2nd increase: Supplement for people with low pensions
After implementing the first adjustment, functional agencies will continue to review the benefit level to provide additional support for low-income groups:
People with pensions below 3.5 million VND/month will receive an additional 300,000 VND/month.
People with a benefit level from 3.5 million to under 3.8 million VND/month will be increased to just enough 3.8 million VND/month.
This additional increase policy only applies to those who retired before January 1, 1995, including cadres, civil servants, public employees, armed forces and some subjects receiving monthly allowances according to previous regulations.
According to the drafting agency, the adjustment in 2 steps aims to narrow the pension gap between periods, especially for the group that retires very early with low benefits. Thereby, contributing to ensuring fairness, improving income and stabilizing life for the elderly.
Based on Article 67 of the 2024 Law on Social Insurance, the pension adjustment level will be considered based on the consumer price index, the state budget balance capacity as well as the social insurance fund.
It can be seen that the proposal to increase pensions twice in a row is an important step in perfecting social security policies, towards ensuring better benefits for retirees, especially low-income groups before 1995.
The total increase for the group retiring before 1995 may reach at least about 16–17%
Although both options raise the group of retirees before 1995 to 3.8 million VND/month, many opinions suggest that this level is still low compared to the current living standards. Is such an adjustment enough to be fairer or is it just a temporary solution?
Answering reporters of Lao Dong Newspaper about this issue, Mr. Nguyen Hai Dat - coordinator of the National Program on Social Security, Office of the International Labor Organization (ILO) in Vietnam said: For the group retiring before January 1, 1995, in addition to the general adjustment level, people with pensions below 3.5 million VND/month are also given an additional increase of 300,000 VND, equivalent to a significant additional increase.
Thus, the total increase for this group may reach at least about 16–17%, significantly higher than the general increase applied to other groups.
According to Mr. Dat, this is not a temporary solution, but a policy that has been implemented continuously for many years, at least from 2016 to now. This reflects the Government's consistent concern for the group of people who retired before 1995 - who have low pensions due to historical context and previous contribution conditions.
In principle, a sustainable social insurance system needs to harmoniously combine the principle of contribution - benefit and the principle of sharing. Adjusting priorities for vulnerable groups is necessary to ensure social equity, but at the same time, it is also necessary to maintain a reasonable link between contribution levels and benefit levels to create motivation for workers to participate and contribute fully" - Mr. Nguyen Hai Dat said.
