How to calculate pension, social insurance benefits, monthly benefits from July 1, 2023

The Ministry of Labor, War Invalids and Social Affairs (MOLISA) is drafting a Circular guiding the adjustment of pensions, social insurance (SI) benefits and monthly allowances, with a proposed increase of 12.5% - 20.8%, expected to apply from July 1, 2023.

Accordingly, the Ministry of Labor, Invalids and Social Affairs proposed that from July 1, 2022, an increase of 12.5% will be applied to pensions, social insurance benefits and monthly allowances. Pensions, social insurance benefits and monthly allowances from July 2023 = Pensions, social insurance benefits and allowances for June 2023 x 1.125.

Increase by 20.8% for pensioners and monthly allowance recipients who have not received a salary increase since January 1, 2022 (retiring after the date of the most recent pension increase adjustment).

For this group, pension, social insurance benefits, monthly allowance from July 2023 = Pension, social insurance benefits, allowance June 2023 x 1.208.

For people with pension, social insurance allowance, monthly allowance under 2,700,000 VND/person/month: Pension, social insurance allowance, monthly allowance after adjustment = Pension, social insurance allowance, monthly allowance before adjustment + 300,000 VND/month.

For people with pension, social insurance benefits, monthly allowance from 2,700,000 VND/person/month to less than 3,000,000 VND/person/month: Pension, social insurance benefits, monthly allowance after adjustment = 3,000,000 VND/month.

Previously, in the draft Decree on adjusting pensions, social insurance benefits and monthly allowances, the Ministry of Labor, Invalids and Social Affairs calculated that after increasing pensions, monthly social insurance benefits and monthly allowances, the state budget will spend an additional VND2,662.2 billion for the last 6 months of this year, with 891 thousand people being adjusted. The social insurance fund will spend an additional VND9,675.4 billion for the last 6 months of this year, to increase salaries for 2.17 million people.

For the group of people who retired and received pension and benefits before January 1, 1995 with a benefit level of less than 3 million VND/month, it is expected that there will be about 236,600 people subject to adjustment paid by the state budget with an adjustment cost of about 272.9 billion VND.

The total additional budget for the adjustment of pensions, social insurance benefits, and monthly allowances from July 1 is more than 12,600 billion VND. Of which, the state budget increased by 2,982.69 billion VND; the Social Insurance Fund source is 9,675.4 billion VND.

The Ministry of Labor, Invalids and Social Affairs expects the average monthly pension of pensioners receiving pensions guaranteed by the state budget after adjustment will increase from about 4.6 million/person/month to 5.2 million VND.

The average monthly pension of pensioners guaranteed by the Social Insurance Fund after adjustment will increase from about VND 5.6 million/person/month to VND 6.3 million.

According to statistics, Vietnam Social Security is paying pensions to about 2.7 million people. Of these, the majority receive between 3 million VND/month and under 7 million VND/month, with nearly 1.9 million people.

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