Government presses for 15% increase in pensions and social insurance benefits

June 22, 2024 - 17:37
The increase is expected to be applied to pensioners and social insurance beneficiaries across the board.
A pensioner receives his benefits at a cultural house in Hà Nội. — VNA/VNS Photo Hoàng Trung Hiếu

HÀ NỘI — The Government is pressing for a 15 per cent increase in pensions and social insurance benefits that would take effect on July 1.

The increase would be applied to pensioners and social insurance beneficiaries across the board. However, for pensioners who retired before 1995, their monthly pensions would be increased additionally by VNĐ300,000 (US$12) if being lower than VNĐ3.2 million and be increased to VNĐ3.5 million if being between VNĐ3.2 million and VNĐ3.5 million after the adjustment.

The Government also proposes raising the standard monthly allowance for veterans from VNĐ2.055 million to VNĐ2.789 million. At the same time, the monthly social assistance to disadvantaged people would be lifted from VNĐ360,000 to VNĐ500,000.

Additionally, the Government proposes a 6 per cent increase in minimum wages for the private sector, effective July 1. For the public sector, a bonus system would be introduced, financed by a bonus fund equivalent to 10 per cent of the salary fund.

The system of basic salary and salary coefficients will be abolished in the future and replaced with a new system based on job positions and performance that still needs to be thoroughly studied and considered. However, in the meantime, the Government proposes adjusting the basic monthly salary from VNĐ1.80 million to VNĐ2.34 million (up 30 per cent) starting from July 1.

The overall impact of the measures is expected to be substantial, affecting approximately 18 million social insurance beneficiaries, 50 million people receiving state-subsidised health insurance, 30 million people covered under provincial-level social assistance policies, and 16 million students.

The 30 per cent increase in the basic monthly salary marks the highest such increase in history. This significant step reflects the government's recognition of the need to address rising living costs and improve the well-being of its citizens. It is also seen as a measure to boost productivity, enhance work efficiency, and promote social stability. — VNS