New pension adjustment policy from July 1, 2025

(Dan Tri) - When the Law on Social Insurance (SI) 2024 takes effect from July 1, 2025, employees' pensions will be adjusted to increase based on two bases.

Workers receive pensions in Ho Chi Minh City (Illustration: Ho Chi Minh City Social Insurance).

The current pension adjustment is stipulated in Article 57 of the 2014 Law on Social Insurance. Accordingly, the Government stipulates pension adjustment based on the increase in the consumer price index and economic growth in accordance with the state budget and the social insurance fund.

From July 1, 2025, the Social Insurance Law 2024 will take effect, replacing the Social Insurance Law 2014. According to the Social Insurance Law 2024, there will be important additions to pension adjustments, increasing benefits for pensioners.

Specifically, according to Article 67 of the 2024 Social Insurance Law, the adjustment to increase pensions will be based on two bases, not one base as in the 2014 Social Insurance Law.

Firstly, pensions are adjusted based on the increase in the consumer price index in accordance with the capacity of the state budget and the social insurance fund.

Second, adjust the pension increase appropriately for those with low pensions and those who retired before 1995, ensuring to narrow the pension gap between retirees in different periods.

Based on the above two bases, the Government will prescribe the time, subjects and pension adjustment levels.

For voluntary social insurance participants, pension adjustment is also carried out according to the provisions of Article 67 of the Social Insurance Law 2024, which means an increase based on the above two bases.

Comparison of pension adjustment basis according to current Social Insurance Law and new amended law (Graphic: Tung Nguyen).

The last time the Government adjusted pensions was from July 1, 2024 according to Decree 75/2024/ND-CP.

Accordingly, the Government decided to increase pensions by 15% based on the monthly pension level of June 2024.

For pensioners who received pension before January 1, 1995, after adjusting the pension increase by 15% but the benefit level is lower than 3,500,000 VND/month, the pension will continue to be adjusted to increase once more in 2 cases.

In the first case, for people with a benefit level of less than 3,200,000 VND/person/month, it will be increased by 300,000 VND/person/month.

In the second case, for people with a benefit level from 3,200,000 VND/person/month to less than 3,500,000 VND/person/month, it will be increased to 3,500,000 VND/person/month.

Source: https://dantri.com.vn/an-sinh/chinh-sach-dieu-chinh-luong-huu-moi-tu-ngay-172025-20241029130931382.htm