Official Decree No. 75/2024/ND-CP on Increasing Pensions and Social Insurance Benefits from July 1, 2024, for Which Subjects?
Official Decree 75/2024/ND-CP increases pensions, and social insurance allowances from July 1, 2024 for which subjects?
On June 30, 2024, the Government of Vietnam issued Decree 75/2024/ND-CP adjusting pensions, social insurance benefits, and monthly allowances.
Decree 75/2024/ND-CP adjusts the pension rates, social insurance benefits, and monthly allowances for those who receive these benefits before July 1, 2024, including:
(1) Officers, officials, workers, public employees, and laborers (including those participating in voluntary social insurance, retirees from the Nghe An Farmer Social Insurance Fund transferred under Decision 41/2009/QD-TTg); military personnel, public security officers, and cipher workers receiving monthly pensions.
(2) Commune-level officers and officials regulated in Decree 33/2023/ND-CP, Decree 92/2009/ND-CP, Decree 34/2019/ND-CP, Decree 121/2003/ND-CP, and Decree 09/1998/ND-CP.
(3) Individuals receiving monthly lost-working-capacity allowances as per the law; individuals receiving monthly allowances under Decision 91/2000/QD-TTg, Decision 613/QD-TTg in 2008; rubber workers receiving monthly allowances under Decision 206-CP in 1979.
(4) Commune-level officers and officials receiving monthly allowances under Decision 130-CP in 1975 and Decision 111-HDBT in 1981.
(5) Military personnel receiving monthly allowances under Decision 142/2008/QD-TTg (amended and supplemented by Decision 38/2010/QD-TTg).
(6) Public security officers receiving monthly allowances under Decision 53/2010/QD-TTg.
(7) Military personnel, public security officers, cipher workers receiving salaries equivalent to military personnel and public security officers receiving monthly allowances under Decision 62/2011/QD-TTg.
(8) Individuals receiving occupational accident and disease allowances monthly.
(9) Individuals receiving monthly survivor benefits before January 1, 1995.
Official Decree 75/2024/ND-CP increases pensions, and social insurance allowances from July 1, 2024, for which subjects?
How is the pension increase from July 1, 2024, regulated?
According to Article 2 Decree 75/2024/ND-CP, the pension and current social insurance benefits (as of June 2024) will officially increase by 15% from July 1, 2024.
Subsequently, for the groups mentioned in items (1), (2), (3), (4), (5), (6), and (7) receiving pensions, social insurance benefits, or monthly allowances before 1995, if the amount after the adjustment as per above regulation is below 3,500,000 VND/month, it will be further adjusted as follows:
+ For amounts less than 3.2 million VND/month, increase by 300,000 VND/month,
+ For amounts from 3.2 million VND/month to below 3.5 million VND/month, increase to exactly 3.5 million VND/month.
Additionally, for the groups in (1), (2), (3), (4), (5), (6), and (7) who retired to enjoy pensions, social insurance benefits, or monthly allowances before 1995, if the amount after adjustment is below 3,500,000 VND/month, it will continue to be adjusted as follows:
- Increase by 300,000 VND/person/month for those with benefits below 3,200,000 VND/person/month;
- Increase to 3,500,000 VND/person/month for those with benefits from 3,200,000 VND/person/month to below 3,500,000 VND/person/month.
The pension, social insurance benefit, and monthly allowance amounts after adjustment as per the above regulation will serve as the basis for adjusting pensions, social insurance benefits, and monthly allowances in future adjustments.
How to calculate the pension before July 1, 2024?
Based on the regulations in Article 7 Decree 115/2015/ND-CP, the monthly pension for those retiring and participating in compulsory social insurance is calculated as follows:
| Monthly pension amount | = | Percentage (%) of monthly pension | x | Average monthly insurance salary || --- | --- | --- | --- | --- |
In detail:
(1) Percentage of monthly pension benefits
Based on Paragraph 2, Article 7 of Decree 115/2015/ND-CP, Article 16 of Circular 59/2015/TT-BLDTBXH, and Article 17 of Circular 59/2015/TT-BLDTBXH.
The percentage of monthly pension benefits for eligible laborers is as follows:
| Retirement Year | Percentage of Pension Benefits | Corresponding Social Insurance Participation Years | Additional Percentage || --- | --- | --- | --- || From January 1, 2016 to before January 1, 2018 | 45% | 15 years | For each additional year of social insurance participation, an additional 2% for men and 3% for women will be calculated. || From January 1, 2018 onwards | 45% | - Female workers: 15 years
- Male workers:
+ 16 years if retiring in 2018;
+ 17 years if retiring in 2019;
+ 18 years if retiring in 2020;
+ 19 years if retiring in 2021;
+ 20 years if retiring from 2022 onwards. | For each additional year of social insurance participation, an additional 2% will be calculated. |
Note:
- The maximum percentage for pension benefits is 75%.
- When calculating pension benefits if the social insurance participation time includes months, from 01 to 06 months is counted as half a year; from 07 to 11 months is counted as one year.
- In the event the worker retires before the stipulated age, there will be a 2% reduction for each year of early retirement.
(2) Average social insurance salary
The average monthly insured salary used to calculate pension benefits is regulated in Article 9 of Decree 115/2015/ND-CP.
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