Do the Social Insurance Agencies Implement the Payment of Pensions According to the New Benefit Levels and Pay the Outstanding Increased Difference for July 2023 Correctly?
Does the social insurance agency disburse pensions according to the new benefit rate and retroactively pay the increased difference not yet received for July 2023?
On July 17, 2023, the Social Insurance Policy Implementation Committee issued Official Dispatch 451/CSXH-HT in 2023 regarding the provision of information on the adjustment of pensions, social insurance allowances, and monthly benefits.
According to Official Dispatch 451/CSXH-HT in 2023 sent to the Communication Center to notify provincial and centrally-governed city social insurances, and simultaneously to central press agencies regarding the provision of information on the adjustment of pensions, social insurance allowances, and monthly benefits, as follows:
To promptly ensure policies for pensioners, social insurance beneficiaries, and monthly benefit recipients, in the disbursement period of August 2023, Vietnam Social Security will disburse pensions, social insurance allowances, and monthly benefits according to the new benefit rate from August 14, 2023; simultaneously, retroactively pay the full increased difference not yet received for July 2023.
Does the social insurance agency disburse pensions according to the new benefit rate and retroactively pay the increased difference not yet received for July 2023?
How much is the pension increase from July 01, 2023?
Based on Clause 1, Article 2 of Decree 42/2023/ND-CP, which prescribes the timing and rate of adjustment for pensions, social insurance allowances, and monthly benefits as follows:
Timing and rate of adjustment
1. From July 01, 2023, the adjustment is as follows:
a) Increase by 12.5% on the pension, social insurance allowance, and monthly benefit amount of June 2023 for subjects specified in Clause 1, Article 1 of this Decree, who have been adjusted according to Decree No. 108/2021/ND-CP dated December 07, 2021, of the Government of Vietnam on the adjustment of pensions, social insurance allowances, and monthly benefits.
b) Increase by 20.8% on the pension, social insurance allowance, and monthly benefit amount of June 2023 for subjects specified in Clause 1, Article 1 of this Decree, who have not been adjusted according to Decree No. 108/2021/ND-CP dated December 07, 2021, of the Government of Vietnam on the adjustment of pensions, social insurance allowances, and monthly benefits.
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From July 01, 2023, the pension will increase by 12.5% for subjects whose pensions have been adjusted according to Decree 108/2021/ND-CP and by 20.8% for subjects whose pensions have not been adjusted according to Decree 108/2021/ND-CP.
At the same time, the increased pension amount and the additional increase from July 01, 2023, will be disbursed by social insurance starting from August 14, 2023.
Regulations for officials with a pension less than 3,000,000 VND/month after the increase
Based on Clause 2, Article 2 of Decree 42/2023/ND-CP, which prescribes the timing and rate of adjustment for pensions, social insurance allowances, and monthly benefits as follows:
Timing and rate of adjustment
1. From July 01, 2023, the adjustment is as follows:
a) Increase by 12.5% on the pension, social insurance allowance, and monthly benefit amount of June 2023 for subjects specified in Clause 1, Article 1 of this Decree, who have been adjusted according to Decree No. 108/2021/ND-CP dated December 07, 2021, of the Government of Vietnam on the adjustment of pensions, social insurance allowances, and monthly benefits.
b) Increase by 20.8% on the pension, social insurance allowance, and monthly benefit amount of June 2023 for subjects specified in Clause 1, Article 1 of this Decree, who have not been adjusted according to Decree No. 108/2021/ND-CP dated December 07, 2021, of the Government of Vietnam on the adjustment of pensions, social insurance allowances, and monthly benefits.
2. From July 01, 2023, individuals receiving pensions, social insurance allowances, and monthly benefits as specified in Clause 2, Article 1 of this Decree, after adjustment according to Clause 1 of this Article, with entitlements lower than 3,000,000 VND/month, shall be further adjusted as follows: Increase by 300,000 VND/person/month for those with entitlements below 2,700,000 VND/person/month; Increase to 3,000,000 VND/person/month for those with entitlements from 2,700,000 VND/person/month to below 3,000,000 VND/person/month.
3. The pension, social insurance allowance, and monthly benefit after the adjustment according to this Article are the basis for the calculation of adjustments in subsequent times.
For officials retiring to receive pensions, social insurance allowances, and monthly benefits before January 01, 1995, after adjustment, if still lower than 3,000,000 VND/month, the following adjustments will be made:
- Increase by 300,000 VND/person/month for officials with entitlements below 2,700,000 VND/person/month;- Increase to 3,000,000 VND/person/month for officials with entitlements from 2,700,000 VND/person/month to below 3,000,000 VND/person/month.
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