Employees participating in social insurance can rest assured because their pensions are always adjusted to ensure their lives.

This is a stable source of income to ensure life in old age and during retirement, a free health insurance card (with 95% coverage of medical examination and treatment costs) is issued for health care. Notably, 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 to ensure the life of retirees. Therefore, pensioners always have their value preserved and are not at risk when the currency depreciates.

In principle, social insurance, the levelenjoy social insuranceis calculated based on the contribution level, the period of social insurance contribution and is shared among social insurance participants. The pension level is proportional to the social insurance contribution level and the period of social insurance contribution, meaning that the higher the social insurance contribution level and the longer the period of social insurance contribution, the higher the pension level will be.

Employees can also track their social insurance payment progress through their social insurance book. Photo courtesy of Thanh Hien

In reality, there are some cases of receiving pensions with low benefits, mainly because the employees pay social insurance at low levels, the time of social insurance payment only reaches the minimum time, there are also many cases where the employees retire early before the prescribed age, leading to a reduction in the percentage due to early retirement (currently, for each year of early retirement, the rate will be reduced by 2% for both men and women).

Some opinions are concerned that the devaluation of the currency will affect the pension, affecting the legitimate rights of social insurance participants. This understanding is not correct, because in fact, the regulations of the social insurance policy have taken into account the inflation or depreciation factor for the social insurance salary of employees not only when calculating the pension level but also ensuring this factor throughout the pension period of employees in order to ensure that the income of pensioners basically meets the needs of life.

People come to do procedures at the one-stop department of the Social Insurance Department of Nam Dan district. Photo courtesy of Dinh Tuyen

Specifically, when calculating pension benefits, the salary paid for social insurance as the basis for calculating the employee's pension is adjusted as follows:

- For employees paying social insurance according to the salary regime prescribed by the State, the salary for which social insurance has been paid will be adjusted according to the basic salary at the time of receiving the retirement regime for employees participating in social insurance before January 1, 2016.

- For employees paying social insurance according to the salary regime prescribed by the State and starting to participate in social insurance from January 1, 2016 onwards and employees paying social insurance according to the salary regime decided by the employer, the salary paid for social insurance to be used as the basis for calculating the average monthly salary for social insurance payment will be adjusted based on the consumer price index of each period according to the Government's regulations.

People participating in voluntary social insurance receive and compare information on their social insurance books at the social insurance and health insurance collection agency in Hung Dung ward, Vinh city. Photo courtesy of the provincial social insurance agency

In fact, the Social Insurance Agency - the unit implementing the policy - has received many elderly people's satisfaction with the pension they are receiving and encouraging their children and grandchildren to fully participate in social insurance in accordance with regulations. In addition, many opinions have also been shared about the regret of employees who have received one-time social insurance, now wishing to return the one-time social insurance amount they have received, continue to pay voluntary social insurance to receive pension and have a free health insurance card (during the entire period of receiving pension) to take care of their health. Because old age and illness are always present "uninvited", many elderly people still have to struggle to make a living and bear the pressure of hospital fees every time they are unfortunately sick.

It can be said that increasing pensions with the view of improving the lives of retirees, reducing difficulties, especially those with low pensions and social insurance benefits... has always been of interest to the Party and State. The Government has adjusted pensions many times over the periods, showing that the lives of retirees have gradually improved. Therefore, workers can completely rest assured and trust in participating in the social insurance policy of the Party and State. Participating in social insurance is the most optimal choice to have a pension and health insurance card as the most solid support for workers when they retire./.

In recent times, pensions for retirees have been continuously increased, based on the increase in the consumer price index and economic growth in line with the state budget and the social insurance fund. Since 1995, the State has adjusted pensions 22 times to ensure the lives of retirees.

In 2022, despite the difficult economic situation in our country, pensions have been adjusted to a general rate of 7.4% from January 1, 2022. Those who retired before January 1, 1995, after adjustment to the general rate, if their monthly pension and social insurance allowance are less than VND 2,500,000/month, will continue to be adjusted.

This shows that the State's social insurance policy is very concerned with the income of pensioners, especially those with low pensions.