From July 1, additional groups of subjects proposed to increase pensions and allowances will be added.
From July 1, in addition to the groups of people receiving increased pensions and periodic allowances, after consulting with the people, the Ministry of Labor, War Invalids and Social Affairs will add another group of people receiving increased salaries and allowances.
In the draft submitted to the Government, the Ministry of Labor, War Invalids and Social Affairs has added a group that will be adjusted to increase pensions and allowances, when adding the group: People receiving monthly allowances for work-related accidents and occupational diseases.
The draft decree proposed by the Ministry of Labor, War Invalids and Social Affairs, from July 1, 2023, will increase salaries by 12.5% for those receiving pensions, social insurance benefits and monthly allowances. Increase by 20.8% for those receiving pensions and monthly allowances who have not received a salary increase since January 1, 2022 (retiring after the date of the most recent pension increase adjustment).
After increasing pensions according to the above general levels, pensioners, social insurance benefits, and monthly benefits before January 1, 1995 with a salary of less than 3 million VND/month will be adjusted to increase.
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Many unemployed workers complete procedures to receive unemployment benefits at the Nghe An Provincial Employment Service Center. Photo: CSCC |
Specifically, those with pensions under 2.7 million VND/month will receive an additional 300,000 VND/month; those with salaries from 2.7 million VND to under 3 million VND/month will receive an additional increase to make up the shortfall to 3 million VND/month.
Explaining the pension increase levels, the Ministry of Labor, War Invalids and Social Affairs said that the pension increase from July 1, 2023 is to match the time of increasing the basic salary. The National Assembly has passed a resolution to increase 12.5% of pensions and social insurance benefits for those guaranteed by the State budget and provide additional support for those who retired before 1995 with low benefits.
According to the Ministry of Labor, War Invalids and Social Affairs, Resolution 69/2022 of the National Assembly has approved the plan to increasepension, additional monthly allowance of 12.5% for the group guaranteed by the State budget.
According to the Law on Social Insurance, when the basic salary increases from July 1, some regimes will also be adjusted to increase accordingly. With the increase in the basic salary to 1.8 million VND/month (an increase of 20.8% compared to the current level), people who retire and receive Social Insurance benefits after July 1 will have a higher pension than those who retired before.
In addition, on January 1, 2022, pensions were adjusted to increase by 7.4%, but the basic salary was not increased, so the group retiring after this time until before the basic salary increase (from January 1, 2022 - June 30, 2023) had lower pensions than those retiring before, even though they had the same calculation conditions; and lower than those retiring after July 1, 2023. Therefore, it is necessary to adjust the additional increase for the group retiring from January 1, 2022 - June 30, 2023, to ensure correlation and fairness between retirement times.
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Distributing pensions to people. Photo: Diep Thanh |
Regarding the additional adjustment for the pension group under 3 million VND/month, the Ministry of Labor, War Invalids and Social Affairs said that the group of retirees, those who stopped receiving benefits and allowances before January 1, 1995, mostly had lost their ability to work, so their working time was short, and their pension and allowance levels were low compared to the general level.
The additional adjustment for this group is a preferential policy of the State for those who have worked and contributed in the State sector before 1995.
The Ministry of Labor, War Invalids and Social Affairs calculated that after increasing pensions, monthly social insurance benefits, and monthly allowances, the State budget will spend an additional VND2,662 billion for the last 6 months of this year, with more than 891,000 people being adjusted.
The Social Insurance Fund increased spending for the last 6 months of this year by more than VND 9,675 billion to increase salaries for more than 2.17 million people.
For the group of people who retired and received pension and benefits before January 1, 1995, with a benefit level of less than 3 million VND/month, it is expected that more than 236,000 people will receive an increase, and the State budget is expected to spend more than 272 billion VND for the last 6 months of the year.
The total additional budget for the adjustment of pensions, social insurance benefits, and monthly allowances from July 1 (until the end of the year) is over VND12,600 billion. Of which, the State budget increased by more than VND2,982 billion, and the Social Insurance fund increased by more than VND9,675 billion./.