Ministry proposes plan on pension, allowance increases
The Ministry of Labour, Invalids and Social Affairs (MoLISA) has submitted to the Government a plan in which it proposes a 20.8% increase of pensions and social insurance benefits and monthly allowances for those with no salary increase from January 1, 2022.
Compared with the previous draft, in the new draft decree, the ministry adds the groups of people who are enjoying monthly benefits for accidents at work and occupational diseases to be entitled to this increase.
The draft decree also proposes raising wages by 12.5% for people who are receiving pensions, social insurance benefits and monthly allowances from July 1, 2023.
Under the new draft decree, recipients of pensions, social insurance benefits, and monthly allowances before January 1, 1995 with a salary of less than VND3 million (US$127.6) per month will be further adjusted. Specifically, people whose pension after the increase is less than VND2.7 million a month, will have it increased by VND300,000 a month; while those with a monthly salary from VND2.7 million to less than VND3 million will have its wage increased to get VND3 million a month.
According to Article 57 of the Law on Social Insurance, pensions are adjusted on the basis of the increase of consumer price index and economic growth, in accordance with the capacity of the budget and the social insurance fund.
From July 1, 2023, the base salary for civil servants, public employees, and members of the armed forces will be raised from VND1.49 million to VND1.8 million per month, or 20.8%.