Pension from 1/7/2024 far exceeds previous pension?

Some readers commented: "Pension is calculated based on civil servant salary before retirement, so the rate of civil servant salary increase should be the same as the rate of pension increase to be fair and in line with the spirit of ensuring social security."

Reader Minh Tran Trong said: "Social insurance charges are based on salary, when civil servant salaries increase, pensions must also increase proportionally."

Reader Pham Van Chuong commented: "Civil servant salaries increased by 23.5% while pensions increased by only 8%, which is too little. It should increase by over 15% to be reasonable."

After receiving some opinions, the author would like to summarize the salary increase through the salary increase periods of cadres, civil servants, public employees and pension increase (temporarily taking the period from 2010 - 13 years) as follows:

From the above summary table, it can be seen that the salary increase adjustment through the times between the salary increase of cadres, civil servants, and public employees and the pension increase often has the same percentage (%), creating consensus and fairness for the retirees before and after the salary increase and there is not much difference.

This time, before the expected salary increase from July 1, 2024, there were some proposals to increase pensions with a difference lower than the expected salary increase for cadres, civil servants and public employees, such as the Vietnam Social Security proposed to increase pensions by only 8%. This proposal has received some disagreements, saying that it is too low compared to the salary increase of cadres, civil servants and public employees (an increase of about 30% - opinion of Minister of Home Affairs Pham Thi Thanh Tra in the article "When the average salary increases by 30%, what will be the lowest salary of civil servants?" published on February 18, 2024 by Dan Tri) and is not consistent with the Government's practice of adjusting salary increases over the past 10 years. This could create a large difference in pensions before and after July 1, 2024.

To ensure fairness and not have much difference in pensions of those retiring before and after July 1, 2024, it is necessary to increase the pension percentage equivalent to the salary increase percentage of officials, civil servants and public employees as has been done over the past 13 years./.

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