From 2022, the pension, social insurance benefit and monthly benefit shall be adjusted as prescribed in Decree No. 108/2021/ND-CP?
Ai is the person who is entitled to adjustment of pension, social insurance allowance and monthly allowance?
As prescribed in Article 1 of the Decree No. 108/2021/ND-CP, entities who are eligible for adjustment to pensions, social insurance benefits and monthly benefits before January 1, 2022 shall include:
- Officials, public employees and workers (including persons participating in voluntary social insurance, retired persons on monthly benefits transferred from Nghe An Farmers' Social Insurance Fund under the Prime Minister's Decision No. 41/2009/QD-TTg dated March 16, 2009 on shifting from Nghe An Farmers' Social Insurance to voluntary social insurance); servicemen, the People's Police and cipher officers who are receiving monthly retirement pensions.
- Officials of communes, wards and commune-level towns who are specified in the Government's Decree No. 92/2009/ND-CP dated October 22, 2009 on positions, quantity, and certain policies for officials and public employees working in communes, wards and commune-level towns and those who work part-time at communes, the Government's Decree No. 34/2019/ND-CP dated April 24, 2019 on amendments to certain regulations on commune-level officials and public employees and those who work part-time at communes, villages and residential areas, the Government's Decree No. 121/2003/ND-CP dated October 21, 2003 on regimes and policies for officials and public employees working in communes, wards and commune-level towns and the Government's Decree No.
- People who are receiving monthly compensations for loss of work capacity as prescribed by law; people who are on monthly benefits as prescribed in the Prime Minister's Decision No. 91/2000/QD-TTg dated August 04, 2000 on monthly benefits for people who have reached the working age at the time of stop of monthly benefits for loss of work capacity, the Prime Minister's Decision No. 613/QD-TTg dated May 06, 2010 on monthly benefits for people who have been full 15 years to less than 20 years of working experience and have finished their monthly benefits for loss of working capacity; rubber workers who are on monthly benefits as prescribed in the Prime Minister's Decision No. 206-CP dated May 30, 1979 on policies for workers who are releasing heavy and harmful jobs and now weak and have to quit their jobs.
- Officials of communes, wards and commune-level towns who are on monthly benefits under the Decision No. 130-CP dated June 20, 1975 by the Government Council on supplements to preferential policies and benefits for communal officials and the Decision No. 111-HDBT dated October 13, 1981 by the Council of Ministers on amendments to certain policies and benefits for officials of communes and wards.
- Servicemen who are on monthly benefits as prescribed in the Prime Minister's Decision No. 142/2008/QD-TTg dated October 27, 2008 on policies for servicemen who participated in the anti-US resistance war for national salvation and have less than 20 years of service in the army and are demobilized and return to their localities (as amended by the Prime Minister's Decision No. 38/2010/QD-TTg dated May 06, 2010).
- People's public security forces who are on monthly benefits as prescribed in the Prime Minister's Decision No. 53/2010/QD-TTg dated August 20, 2010 on compensation regimes for people's public security officers and soldiers who participated in the anti-US resistance war, and have less than 20 years working in the people's public security force who have resigned or been demobilized and now return to their localities.
- Soldiers, people's polices, cipher officers who are salaried as servicemen and people's policemen on monthly benefits as prescribed in the Prime Minister's Decision No. 62/2011/QD-TTg dated November 09, 2011 on regimes and policies for participants in national defense wars, participation in international missions in Cambodia, helping Laos after April 30, 1975, demobilized or resigned.
Note: If the entities prescribed in Clause 1 of this Article retire before January 01, 1995, after making adjustments specified in Clause 1 Article 2 of this Decree, they have pension, social insurance benefits or monthly benefits of less than VND 2,500,000.
What time begins to adjust?
In accordance with Article 2 of the Decree No. 108/2021/ND-CP, time and rate of adjustment shall be provided for as follows:
- From January 1, 2022, the increase of 7.4% of pension, social insurance allowance and monthly allowance in December 2021 shall be applied to entities prescribed in Clause 1 Article 1 herein.
- From January 1, 2022, the entities prescribed in Clause 2 Article 1 of this Decree shall be adjusted as follows: Increase of 200,000 VND/person/month for those who receive pensions, social insurance benefits or monthly benefits from 2,300,000 VND/person/month or less; increase of 2,500,000 VND/person/month for those who receive pensions, social insurance benefits or monthly benefits from 2,300,000 VND/person/month to less than 2,500,000 VND/person/month.
- The pension, social insurance allowance or monthly allowance after the adjustment under the provisions of this Article is the basis for calculating the adjustment of pension or subsidy for the subsequent adjustments.
Method of calculating the adjustment rate of pension, social insurance allowance and monthly allowance made ?
The calculation specified in Article 2 of Circular No. 37/2021/TT-BLDTBXH (coming into force from March 15, 2022) is as follows:
- From January 1, 2022, the entities prescribed in Clause 1 Article 1 of this Circular shall receive an increase of 7.4% of the pensions, social insurance benefits and monthly benefits in December 2021. Specifically:
Level of pensions, social insurance benefits and monthly benefits from January, 2022 = level of pensions, social insurance benefits and monthly benefits in December, 2021 x 1,074
- From January 1, 2022, the pensions, social insurance benefits and monthly benefits of the entities prescribed in Clause 2 Article 1 of this Circular shall be specifically adjusted as follows:
+ For persons with pension, social insurance allowance or monthly allowance of VND 2,300,000/person/month or less:
Level of pension, social insurance allowance, monthly allowance after adjustment = Level of pension, social insurance allowance, monthly allowance prior to adjustment + 200,000 VND/month
+ For persons with pension, social insurance allowance or monthly allowance of between over 2,300,000 dong/person/month and less than 2,500,000 dong/person/month:
The pension, social insurance allowance and monthly allowance after adjustment = 2,500,000 dong/month
Note: The aforesaid method applies to certain entities prescribed in Article 1 of the Circular No. 37/2021/TT-BLDTBXH (coming into force from March 15, 2022)
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