How many people receive a pension of less than 1.3 million VND/month?

Ms. Dinh Thu Hien - Deputy Head of the Vietnam Social Security Policy Implementation Department said that the pension of teacher Truong Thi Lan (Cam Xuyen, Ha Tinh) is not the lowest. According to the latest data, there are currently 3,228 subjects who will have to receive a pension of less than 1.3 million VND/month.

Teacher Truong Thi Lan (Cam Xuyen, Ha Tinh)

Ms. Hien said that pensions are clearly regulated in the Law on Social Organization. If you pay low, you will receive low pensions, if you pay high, you will receive high pensions. In particular, the salary paid and the time of payment are the two most important factors in calculating pensions.

Before January 1995, preschool teachers were not on the state payroll, so Ms. Lan's working time before 1995 was not counted as social insurance payment time. During the period from January 1995 to August 1998, the Government issued a Decree stipulating that preschool teachers were not subject to compulsory social insurance payment.

Therefore, from January 1995 to August 1999, preschool teachers were not subject to social insurance. However, due to the policy of caring for preschool teachers, in 2004, Vietnam Social Security and the Ministry of Education and Training issued a document to determine that preschool teachers who had not participated in social insurance could have their social insurance paid back from January 1995 so that they would have enough time to enjoy retirement benefits, Ms. Hien explained.

Therefore, most preschool teachers who worked before January 1995 will only have their social insurance contribution period counted from January 1995 onwards.

In addition, because educational institutions do not have a large budget, their contribution level only stops at the floor level, which is the minimum wage. In 1995, the basic salary was 420,000 VND, now it is only 1.3 million VND. "That contribution level is very low. For example, teacher Lan only paid social insurance for 22 years and 8 months, the pension rate is 69% (the rate is not entitled to the maximum)".

However, according to Ms. Hien, the pension of preschool teachers is not the lowest. In fact, there are currently 3,228 people with a pension of less than 1.3 million VND. Of which, the 2 groups with the lowest salaries are non-professional commune officials and voluntary social insurance participants.

According to the latest figures, there are currently 3,228 people who will have to receive a pension of less than 1.3 million VND/month.

Currently, for non-professional commune officials, their social insurance contributions are only based on the basic salary and if the minimum period of social insurance contributions is only about 20 years, this year they will only receive a salary of about 55%. Next year, their pension rate will fluctuate between 55-60%.

For those who participate in voluntary social insurance, their lowest salary is also based on the basic salary. According to the 2014 Law, from January 1, 2016, the salary of these voluntary social insurance participants will be at least equal to the poverty line of rural areas (ie on the basis of 700 thousand VND). Their pension will certainly be around 55-60%, even 75% still cannot reach the minimum salary. These people will have a low salary, under 1.3 million VND/month.

According to Tien Phong Newspaper