In the 2 adjustment options, in addition to the usual ratio, the state also applies an increase according to the absolute amount.
Notably, low-entitlement groups, especially those who retired before January 1, 1995, continue to be proposed for support to raise the minimum benefit level.
Two pension increase options are being proposed
In option 1, the drafting agency proposed to increase by 4.5% and 200,000 VND/month on the pension level, social insurance allowance and monthly allowance of June 2026 for the prescribed subjects.
In this draft decree, the drafting agency has proposed ways to adjust the pension and combined allowance levels according to relative numbers (percentage) and absolute amounts. Specifically, the new pension and allowance levels from July 1, 2026 are proposed to increase by 4.5% and 200,000 VND/month above the level of June 2026.
For example, by June 2026, Mr. Nguyen Van A is receiving a pension of 10 million VND/month. If calculated according to option 1, Mr. A will receive an increase of 4.5%, equivalent to 450,000 VND and 200,000 VND/month.
Thus, it is expected that Mr. A's July pension will be increased by 650,000 VND. This person's new pension will be 10.65 million VND/month.
In addition to the above groups, pensions, social insurance allowances and monthly allowances for June 2026 are adjusted to increase by 8% for people who are receiving monthly occupational accident and disease allowances; people who are receiving monthly death benefits before January 1, 1995; people who are receiving monthly allowances according to the provisions of the Law on Social Insurance.
Compared to Decree No. 75/2024/ND-CP, this new draft decree supplements the group of monthly allowances according to Article 23 of the 2024 Social Insurance Law.
With this option, the total additional budget compared to 2025 is estimated at 9,176 billion VND, of which the additional budget for the state budget source is estimated at 2,105 billion VND and the additional budget for the social insurance fund source is estimated at 7,070 billion VND.
According to the assessment of the Ministry of Home Affairs, nearly 80% of people receiving pensions, social insurance allowances and monthly allowances mainly belong to the group with a benefit level from 3 million VND/month to less than 10 million VND/month.
Therefore, when implementing pension adjustments combined with adjustments according to relative numbers as in option 1, people with low pensions, social insurance allowances and monthly allowances will receive relatively higher adjustments than the current pension and allowance level.
This shows more sharing than simply adjusting according to the adjustment level according to the relative increase (percentage). Meanwhile, it still ensures the preservation of the value of pensions, social insurance allowances and monthly allowances against inflation factors because the adjustment is still implemented according to the percentage rate (4.5%).
Option 2 is to adjust the increase of 8% of the social insurance allowance and monthly allowance for June 2026, applicable to all subjects mentioned above.
For example, by June 2026, Mr. A is receiving a pension of 10 million VND/month. If calculated according to option 2, Mr. A will receive an increase of 8% compared to the June pension, equivalent to 800,000 VND. Thus, this person's new pension will be 10.8 million VND/month from July 1.
The estimated total additional cost of this option compared to the previous year is estimated at 9,749 billion VND, of which the additional cost for the state budget source is estimated at 2,013 billion VND; the additional cost for the social insurance fund source is estimated at 7,736 billion VND.
Thus, the estimated additional cost according to the second adjustment plan is 573 billion VND higher than plan 1.
With this option, applying a general adjustment rate of 8% for all pensioners, social insurance allowances, and monthly allowances will not overcome the current limitations in pension adjustment.
In particular, this option has not institutionalized the viewpoint in Resolution No. 28-NQ/TW aimed at changing the way pensions are adjusted in a sharing direction.
In addition, this adjustment plan has not reduced the issue of pension differences between people with low pensions and high pensions after the adjustment is implemented. At the same time, it has not met the expectations and aspirations of the majority of pensioners today.
Continue to propose raising the benefit level for retirees before 1995
In addition, whether according to option 1 or option 2, the group of people retiring before 1995 with pensions, social insurance allowances and monthly allowances with a benefit level lower than 3.8 million VND/month will continue to be adjusted further.
Specifically, an increase of 300,000 VND/person/month for people with a benefit level below 3.5 million VND/person/month; an 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.
Specifically, the cost of adjusting the pension level for people retiring before 1995 with low pensions when implementing 2 options is estimated at 200 - 300 billion VND.
