Employees retiring in 2026 will be calculated pensions according to a new coefficient
According to regulations, the monthly pension and social insurance allowance (SI) level of employees is determined according to the SI contribution period and the average monthly salary and income for SI contribution of employees.
The monthly salary and income level for social insurance contributions of employees is an absolute amount but is multiplied by the adjustment level of salary and monthly income that has been paid for social insurance (also known as the inflation rate) to compensate for the rate of currency depreciation over time.
Every year, state management agencies will issue a new adjustment coefficient for salaries and monthly income already paid for social insurance applied for the whole year.
On February 3, Vietnam Social Security issued a document guiding the adjustment coefficient of salaries and monthly income already contributed to social insurance to serve as a basis for resolving and adjusting the level of social insurance benefits for employees in 2026.
According to the above document, in 2026, the adjustment coefficient of monthly salary and monthly income already contributed to social insurance is as follows:
Thus, employees retiring in 2026 will have their pensions calculated according to the above adjustment coefficient.
Compared to 2025, the adjustment coefficient of monthly salary already paid for social insurance for compulsory social insurance participants in 2026 is 0.04 to 0.18 times higher.
For the adjustment coefficient of monthly income already paid for social insurance (for voluntary social insurance participants), the coefficient in 2026 is higher than in 2025 from 0.03 times to 0.08 times.
Because the adjustment coefficient in 2026 is higher than in 2025, retirees this year will have higher pensions.
2 pension increase options from July 1 are being proposed
Currently, the Ministry of Home Affairs is seeking opinions on the draft Decree adjusting pensions, social insurance allowances (BHXH) and monthly allowances. Accordingly, the Ministry of Home Affairs proposed 2 options to adjust pensions and allowances from July 1.
The first option is to adjust an increase of 4.5% and 200,000 VND/month on the pension level, social insurance allowance and monthly allowance of June 2026 for the subjects specified in points a, b, c, d, đ, e and g of this draft Decree.
For the subjects specified in points h, i and k of this draft decree, it is adjusted to increase by 8% on the social insurance allowance and monthly allowance level of June 2026.
For people who are receiving pensions, social insurance allowances, monthly allowances before January 1, 1995, after adjusting according to the above regulations and have a benefit level lower than 3.8 million VND/month, it is adjusted to increase as follows: Increase by 300,000 VND/person/month for people with a benefit level below 3.5 million VND/person/month; increase to 3.8 million VND/person/month for people with a benefit level from 3.5 million VND/person/month to under 3.8 million VND/person/month.
The second option is to adjust an additional increase of 8% on the pension level, social insurance allowances and monthly allowances for June 2026.
For people who are receiving pensions, social insurance allowances, monthly allowances before January 1, 1995, after adjustment according to regulations, if the benefit level is lower than 3.8 million VND/month, it is adjusted to increase as follows: Increase by 300,000 VND/person/month for people with a benefit level below 3.5 million VND/person/month; increase to 3.8 million VND/person/month for people with a benefit level from 3.5 million VND/person/month to under 3.8 million VND/person/month.
When 1 of the 2 options above is selected, the subjects entitled to pension benefits and monthly allowances from June 2026 and earlier will all have the opportunity to increase their pensions and monthly allowances from July 1.
Thus, those who retire before July 1 have the opportunity to receive a pension increase twice: The first time is the adjustment coefficient of monthly salary and monthly income already contributed to social insurance according to the consumer price index in 2026; The second time is an increase according to the upcoming pension increase plan.
The pension adjustment plan is receiving much attention from the people, with the hope of helping pension beneficiaries somewhat cope in the context of market prices tending to "increase before salary" as they are now.
