The Government proposes to increase the current pension and social insurance benefits by 15% from July 1, 2024 (based on the June 2024 benefit level).

The above adjustment applies to more than 3.3 million people, including pensioners from compulsory social insurance and voluntary social insurance participants.

Accordingly, for those receiving pension before 1995, after adjustment, if the benefit level is lower than 3.2 million VND/month, the adjustment will increase by 0.3 million VND/month; if the benefit level is from 3.2 million VND/month to less than 3.5 million VND/month, the adjustment will be 3.5 million VND/month.

Buddhist monk (12).jpg Photo by Chi Hieu
Increased pensions will better ensure social security in the current period. Illustration photo: Chi Hieu

Vietnam Social Security said that the above increase rate has been carefully calculated by management agencies, ensuring fairness, reasonableness, harmony, and sharing between pensioners and social insurance contributors, between the state and non-state sectors, between generations participating in and benefiting from the policy; at the same time, ensuring the ability to balance the Social Security Fund in the long term.

From July 1, 2024, the Government also proposed to increase the regional minimum wage by 6%. Implementing these proposals will ensure that workers' pensions are increased in the long term, taking into account the capacity of enterprises and the support of the State; ensuring the ability to balance the Social Insurance Fund in the long term.

To ensure the living standards of retirees, from 1995 to the end of 2023, the National Assembly and the Government have adjusted pensions 23 times. The current pension level of retirees has increased from 21 to 26 times compared to the pension level in 1995.

The pension level is not fixed at the time of retirement but is periodically adjusted to increase according to the consumer price index and economic growth in accordance with the state budget and the Social Insurance Fund to ensure the life of retirees.

15% increase is reasonable

In response to the Government's proposal to increase pensions by 15%, Mr. Nguyen Van An - who has been retired for 20 years (in Hanoi) said that a 15% increase in pensions is reasonable, ensuring good social security in the current period.

According to Mr. An's observation, the State has adjusted salary increases many times, and the increase each period for different groups of subjects (cadres, civil servants, public employees and retirees) is equivalent.

This has created consensus and fairness for retirees before and after the salary increase, without much difference.

Agreeing with the above view, Mr. Tran Trung Thai - who retired in 2011 (in Bac Giang) said that what he is most concerned about is ensuring fairness for retirees before and after July 1, 2024.

According to Mr. Thai, adjusting pension levels and providing timely implementation plans will help increase the attractiveness and sustainability of the policy.

"The purpose of participating in social insurance is to ensure long-term social security, when each person reaches retirement age. Many workers withdraw their social insurance at one time, creating a burden on ensuring social security later.

We always advise people not to withdraw social insurance at once to avoid losing many benefits," Mr. Thai shared.