Announcement of pension increase from July 1, 2023 in Vietnam

Duong Chau Thanh

17:33, 07/11/2023

Hanoi Social Insurance has issued a document announcing the increase in pensions and social insurance benefits from July 1, 2023 in Vietnam.

Official dispatch 3127/BHXH-CDBHXH of 2023 on information on adjustments to pensions and social insurance benefits according to Decree 42/2023/ND-CP issued by Hanoi Social Insurance.

Announcement of pension increase from July 1, 2023 in Vietnam

Announcement of pension increase from July 1, 2023 in Vietnam (Internet image)

Announcement of pension increase from July 1, 2023 in Vietnam

On June 29, 2023, the Government issued Decree 42/2023/ND-CP on adjusting pensions, social insurance benefits, and monthly benefits, taking effect on August 14, 2023; the regulations in this Decree will be implemented on July 1, 2023. From July 1, 2023:

- Adjusted to increase by 12.5% on pension, social insurance benefits, and monthly benefits of June 2023 for subjects that have been adjusted according to Decree 108/2021/ND-CP dated December 7, 2021 of the Government on adjusting pensions, social insurance benefits, and monthly benefits (people receiving pensions and monthly Social Insurance benefits before January 1, 2022).

- Adjusted to increase by 20.8% on pension, social insurance benefits, and monthly benefits in June 2023 for subjects specified in Clause 1, Article 1 of Decree 42/2023/ND-CP that have not been adjusted according to Decree 108/2021/ND-CP dated December 7, 2021 of the Government adjusting pensions, social insurance benefits, and monthly benefits.

(Persons receiving pensions and monthly social insurance benefits from January 1, 2022 to before July 1, 2023).

- People receiving pensions and monthly social insurance benefits before January 1, 1995, according to the provisions of Clause 2, Article 1 of Decree 42/2023/ND-CP, after making the adjustment according to Clause 1, Article 2 of Decree 42/2023/ND-CP, if the benefit level is lower than 3,000,000 VND/month, it will be adjusted further as follows:

+ Increase by 300,000 VND/person/month for those with benefits below 2,700,000 VND/person/month;

+ Increase to 3,000,000 VND/person/month for those with benefits from 2,700,000 VND/person/month to less than 3,000,000 VND/person/month.

To promptly pay pensions and social insurance benefits for July 2023 to beneficiaries, the social insurance agency will temporarily make payments according to the June 2023 benefit rate;

When there is a guiding Circular from the Ministry of Labor, War Invalids, and Social Affairs and a directive document from Vietnam Social Insurance, Hanoi Social Insurance will make adjustments in accordance with regulations.

(Particularly for those who have a decision to enjoy pensions and social insurance benefits from July 1, 2023, the base salary of 1,800,000 VND has been calculated according to Decree 24/2023/ND-CP).

According to the provisions of Clause 1, Article 3 of Resolution 69/2022/QH15 for those receiving pensions, social insurance benefits, and monthly benefits guaranteed by the state budget, the adjustment will increase by 12.5% and provide additional support for people retiring before 1995 with low benefits.

According to the provisions of Article 57 of the Law on Social Insurance, pensions are adjusted on the basis of the increase in the consumer price index and economic growth, in accordance with the capacity of the state budget and social insurance fund.

Because in 2022, only pension adjustments will be made without base salary adjustments, so employees have time to pay social insurance according to the salary regime prescribed by the State when retiring, monthly social insurance benefits from January 1, 2022, until before July 1, 2023 will be 7.4% lower than those who retire before January 1, 2022 (same work history, same salary coefficient) because during this time, employees are not allowed to adjust their salary for which social insurance has been paid because during this time the base salary has not been adjusted.

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