(Dan Tri) - Currently, the average pension of about 3.4 million people, including the armed forces, is nearly 7 million VND/month. This pension level has increased significantly after recent adjustments.
On the afternoon of January 14, Mr. Do Ngoc Tho, Head of the Social Insurance Policy Implementation Department, Vietnam Social Security, said that if only calculating in the civilian sector, the average pension level could be lower.
Currently, the country has nearly 3.4 million people receiving monthly pension and social insurance benefits. To achieve the above average pension level, Mr. Tho said, the Government has repeatedly adjusted pensions to be higher than the consumer price index and economic growth rate.
The Head of the Social Insurance Policy Implementation Department cited that from July 1, 2024, pensions will increase by 15%, applicable to 9 groups of subjects.
For the group of workers who retired before 1995, after applying the 15% increase but their salary is still lower than 3.5 million VND/month, they will be compensated in 2 ways.
First, increase by 300,000 VND/person/month for those with a benefit level below 3.2 million VND/person/month. Second, increase by 3.5 million VND/person/month for those with a benefit level from 3.2 million VND/person/month to under 3.5 million VND/person/month.
Mr. Do Ngoc Tho, Head of Social Insurance Policy Implementation Department (Photo: Van Quang).
According to current law, social insurance benefits are calculated based on contribution level and contribution period.
Accordingly, the monthly pension of employees is calculated based on the monthly salary used as the basis for social insurance contributions and the time the employee has participated in insurance.
Therefore, the pension level of employees is high or low depending on the time of contribution and monthly salary of social insurance of the employee while still working.
According to Article 57 of the Law on Social Insurance 2014, pensions are adjusted based on the increase in the consumer price index and economic growth in accordance with the state budget and the Social Insurance Fund.
According to information from the Ministry of Labor, War Invalids and Social Affairs, in 10 years (2013-2023), the Government has adjusted pensions 7 times with an average increase of more than 8.43%, the adjustment rate each time is higher than the increase in the consumer price index in the same period.
The 15% increase from July 1, 2024 is actually twice as high as the average adjustment for the 2013-2023 period.
From July 1, when the Social Insurance Law 2024 takes effect, the conditions for receiving pensions will have some changes compared to the current law. The important change is that the minimum period of social insurance payment to receive monthly pensions will be reduced to 15 years (5 years lower than the current minimum period of 20 years of insurance payment).
According to statistics from Vietnam Social Security in 2024, the average salary for social insurance contributions of employees in the administrative, career, and party organization groups is 6.936 million VND, and that of employees in the enterprise and cooperative groups is 6.382 million VND. The difference in salary contributions between the two groups is about 9%.
By the end of 2023, the average pension of the group receiving state salary when retiring is 6.1 million VND/month.
In addition, pensioners from the Social Insurance Fund have an average of 5.6 million VND/person/month.
Source: https://dantri.com.vn/an-sinh/luong-huu-binh-quan-tang-dat-gan-7-trieu-dongnguoithang-20250114202149484.htm
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