From August 1st, pensions and monthly allowances will increase.

From next August, retirees who receive monthly benefits from January 1, 2015 to before May 1, 2016, will have their pension and benefits increased by 8%.

This increase in pension and allowance is calculated based on the basic salary which has increased from May 1, 2016 to VND 1,210,000 per month.

In addition, the Government also decided to raise the pension and monthly allowance for low-income groups to 2,000,000 VND per person.

The content of Decree 55 of the Government recently issued has stipulated in detail the monthly pension and allowance levels of workers.

Specifically, cadres, civil servants, public employees and workers (including those who have participated in voluntary social insurance, retirees from the Nghe An province farmers' social insurance fund transferred under Decision No. 41/2009 of the Prime Minister); soldiers, people's police and people working in key positions who are receiving monthly pensions.

Commune, ward and town officials specified in Decree 29, Decree 121 and Decree No. 09/ of the Government are receiving monthly pensions and allowances.

Retirees after May 1, 2016 will receive an 8% increase in their monthly pension.

The adjustment time is calculated from the month when the pension and monthly allowance are started. For those who have been increased by 8% according to Decree 09 of the Government (retired or quit before January 1, 2015), the benefit level remains the same.

For employees with social insurance payment period who are subject to the salary regime prescribed by the State and retire from May 1, 2016 onwards, pension is calculated on the new basic salary of 1,210,000 VND according to the calculation method of the Law on Social Insurance.

In the case of people whose pension, disability allowance and monthly allowance as prescribed are lower than 2 million VND, Decree 55 stipulates that the benefit level will be adjusted from January 1, 2016 for those who are receiving it before January 1, 2016 and calculated from the month they start receiving pension and monthly allowance for those who start receiving it in the period from January 1, 2016 to December 31, 2016.

Specific adjustment levels: Increase by 250,000 VND per person per month for those with pensions of 1,750,000 VND or less; increase by 2,000,000 VND per person per month for those with pensions of over 1,750,000 VND to under 2,000,000 VND.

Increase by 150,000 VND per person per month for those with a monthly allowance for loss of working capacity or a monthly allowance of 1,850,000 VND or less; increase by 2 million VND per person per month for those with a monthly allowance for loss of working capacity or a monthly allowance of over 1,850,000 VND to under 2 million VND per person per month.

The level of pension, disability allowance, and monthly allowance after adjustment according to regulations is the basis for calculating pension and allowance adjustments in subsequent adjustments.

According to VNE