Ministry proposes plan on pension, allowance increases

Compared with the previous draft, in the new draft decree, the ministry adds the groups of people who are enjoying monthly benefits for accidents at work and occupational diseases to be entitled to this increase.

The draft decree also proposes raising wages by 12.5% for people who are receiving pensions, social insurance benefits and monthly allowances from July 1, 2023.

Under the new draft decree, recipients of pensions, social insurance benefits, and monthly allowances before January 1, 1995 with a salary of less than 3 million VND (127.6 USD) per month will be further adjusted. Specifically, people whose pension after the increase is less than 2.7 million VND a month, will have it increased by 300,000 VND a month; while those with a monthly salary from 2.7 million VND to less than 3 million VND will have its wage increased to get 3 million VND a month.

According to Article 57 of the Law on Social Insurance, pensions are adjusted on the basis of the increase of consumer price index and economic growth, in accordance with the capacity of the budget and the social insurance fund.

From July 1, 2023, the base salary for civil servants, public employees, and members of the armed forces will be raised from 1.49 million VND to 1.8 million VND per month, or 20.8%.