According to the draft Decree on adjusting pensions, social insurance allowances and monthly allowances, expected to be applied from July 1, 2026, people who are receiving low pensions may be adjusted to increase up to 2 consecutive times.
The first adjustment is the general increase applied to the groups of subjects subject to adjustment. According to the draft, there are 2 options being proposed.
With option 1, pensioners are given an additional 4.5% increase on the pension level of June 2026 and an additional 200,000 VND/month.
With option 2, pensioners are given a simultaneous increase of 8% above the current level.
This is considered a basic increase, applied generally to subjects subject to adjustment.
After increasing according to the general plan, functional agencies will continue to review to provide additional support to people with low benefits. This is the second adjustment, but it does not apply to everyone.
Specifically, for people who have been receiving pensions before January 1, 1995, if after the first increase, the pension level is still below 3.5 million VND/month, they will be added 300,000 VND/month.
In case after adjustment, the pension level from 3.5 million VND to under 3.8 million VND/month will be increased to just enough 3.8 million VND/month.
Thus, low pension groups are not only increased according to the general formula but can also continue to receive additional support to improve actual income.
According to the draft, the groups subject to adjustment include cadres, civil servants, public employees, laborers, workers, including people participating in voluntary social insurance; people retiring from the Nghe An farmers' social insurance fund transferred under Decision 41/2009/QD-TTg; soldiers, people's police and people working in cryptography who are receiving monthly pensions.
In addition, there are commune, ward, and town officials who retire to enjoy regimes according to current decrees; people who are receiving monthly incapacity allowances; people who receive allowances according to separate decisions of the Prime Minister; rubber workers who are receiving monthly allowances; commune-level officials who are receiving allowances according to previous decisions; and some groups of soldiers, police, and people working in cryptography who are receiving monthly allowances according to regulations.
A specific example can help visualize this increase more clearly.
Mr. A retired on February 24, 1993, currently receiving a pension of 2 million VND/month. If option 1 is applied from July 1, 2026, his first increase will be calculated as follows:
The additional amount is 4.5% of 2 million VND, equivalent to 9,000 VND, then adding 200,000 VND/month. Thus, after the first adjustment, Mr. A will receive:
2,000,000 + 90,000 + 200,000 = 2,290,000 VND/month
Because this level is still lower than 3.5 million VND/month, Mr. A continued to receive additional support of 300,000 VND/month in the second adjustment.
Mr. A's final benefit level will be:
2. 290,000 + 300,000 = 2,590,000 VND/month
Thus, Mr. A's total increase is 560,000 VND/month, equivalent to about 29.5% compared to the current pension level.
