Pensions and monthly allowances will increase starting August 1st.

Starting in August, retirees who received monthly pensions between January 1, 2015, and before May 1, 2016, will receive an 8% increase in their pension or allowance.

This increase in pensions and allowances is calculated based on the basic salary that increased from May 1, 2016, to 1,210,000 VND per month.

In addition, the government has also decided to increase the monthly pension and allowance for low-income earners to 2,000,000 VND per person.

The content of Government Decree 55, recently issued, provides quite detailed regulations on the pension and monthly allowance levels for various categories of workers.

Specifically, this includes officials, civil servants, public employees, and workers (including those with voluntary social insurance participation time, and retirees transferred from the Nghe An province's farmers' social insurance fund according to Decision No. 41 of 2009 of the Prime Minister); military personnel, public security personnel, and those working in cryptography who are receiving monthly pensions.

Commune, ward, and town officials as stipulated in Government Decrees 29, 121, and 09/ are currently receiving pensions and monthly allowances.

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

The adjustment period starts from the month the pension or monthly allowance begins to be received. However, those who have already received an 8% increase under Government Decree 09 (retired or left their jobs before January 1, 2015) will retain their current benefit level.

For workers whose social insurance contributions fall under the category of those subject to the state-regulated salary system and who retire from May 1, 2016 onwards, their pension will be calculated based on the new base salary of VND 1,210,000 according to the calculation method of the Social Insurance Law.

For individuals whose pension, disability allowance, and monthly allowance are less than 2 million VND, Decree 55 stipulates that the benefit amount will be adjusted from January 1, 2016, for those receiving benefits before January 1, 2016, and calculated from the month of commencement of pension or monthly allowance for those starting to receive benefits between January 1, 2016, and December 31, 2016.

Specific adjustments: An increase of 250,000 VND per person per month for those receiving a pension of 1,750,000 VND or less; an increase to 2,000,000 VND per person per month for those receiving a pension between 1,750,000 VND and 2,000,000 VND.

An increase of 150,000 VND per person per month will be applied to those receiving disability benefits or monthly allowances of 1,850,000 VND or less; the amount will be increased to 2,000,000 VND per person per month for those receiving disability benefits or monthly allowances between 1,850,000 VND and 2,000,000 VND per person per month.

The adjusted pension, disability allowance, and monthly allowance levels, as stipulated by regulations, serve as the basis for calculating further adjustments to pensions and allowances in subsequent adjustments.

According to VNE