(Dan Tri) - According to the Ministry of Labor, War Invalids and Social Affairs, Vietnam's pension is not low, only a part of workers who retired before 1995 are not high.
Regarding monthly pensions, Mr. Pham Truong Giang, Director of the Department of Social Insurance, Ministry of Labor, War Invalids and Social Affairs, said that international practice shows that pensions are compared with average income per capita.
In Vietnam, the average pension is currently 6.2 million VND/month. While the GDP per capita is about 4,700 USD.
Mr. Giang gave an example of Korea, where the average old-age pension is about 13 million VND/month, equivalent to 156 million VND/year. The average gross domestic product (GDP) per capita is about 36,000 USD, equivalent to 864 million VND.
According to the Director of the Department of Social Insurance, Vietnam's pension is not low, but only a part of workers who retired before 1995 were not high. Because at that time, workers had short working time and retired early.
In 1995, the pension rate in Korea was 50%, equivalent to 40 years of contributions. However, due to balancing pressure, it has decreased by 0.5% each year, leading to an expected rate of 40% in 2028. Because the rate of 40% is too low, the pension rate is currently at 42%.
Mr. Giang said that according to calculations in 2023, the national pension fund of Korea will reach 1,775 billion won, equivalent to more than 7,000 billion USD - ranking 3rd in the world. However, this fund will have a deficit from 2041 and be exhausted by 2055. Therefore, the Korean Government submitted to the National Assembly to increase the social insurance contribution rate of enterprises.
Due to pressure on the pension fund, Korea plans to gradually increase the contribution rate from 9% to 13%, but keep the benefit rate at 42%, equivalent to the above 40 years of contributions.
"Due to the pressure of population aging, the number of contributors will decrease and conversely the number of beneficiaries will increase, increasing pressure on the fund," said Mr. Giang.
The Director of the Department of Social Insurance also said that Vietnam is one of the countries with the fastest aging population in the world. It is forecasted that in 2025, for every 6 people of working age (15-59 years old), there will be only 1 person outside of working age. However, by 2055, 2 people of working age will have to support 1 person outside of working age.
"By 2055, to maintain the current benefit level, there are only two ways: Children and grandchildren must pay social insurance at a rate 3 times higher than the current level; reform so that this group has a suitable benefit level, reducing the burden on future generations," he said.
According to statistics from Vietnam Social Security, there are currently nearly 3.4 million people nationwide receiving monthly pension and social insurance benefits.
Since 1995, the National Assembly and the Government have adjusted pensions 24 times. After many adjustments, the current pension for retirees has increased from 21 to 26 times compared to the pension level in 1995.
The most recent pension increase was from July 1, 2024, according to Decree 75/2024/ND-CP, with pensions adjusted to increase by 15%. For the group of workers who retired before 1995, after the 15% increase, if the benefit level is lower than VND 3.5 million/month, it will be adjusted to increase once more.
Specifically, increase by 300,000 VND/person/month for those with benefits below 3.2 million VND/person/month; increase by 3.5 million VND/person/month for those with benefits from 3.2 million VND/person/month to under 3.5 million VND/person/month.
Source: https://dantri.com.vn/an-sinh/luong-huu-binh-quan-62-trieu-dongthang-la-cao-hay-thap-20250208093943456.htm
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