Announcement of pension increase 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 (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).

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