From August 14, 2023, pension payments to be adjusted in Vietnam

From August 14, 2023, pension payments to be adjusted in Vietnam (Internet image)

From August 14, 2023, pension payments to be adjusted in Vietnam

Decree 42/2023/ND-CP takes effect as of August 14, 2023; the adjustment of pension, social insurance allowance, and monthly allowance will be implemented on July 1, 2023.

However, in the July 2023 pension payment, pensioners and social insurance beneficiaries have not yet received the new pension because Decree 42/2023/ND-CP shall take effect as of August 14, 2023.

In addition, according to Official Dispatch 451/CSXH-HT, it is also stated: In order to promptly ensure regimes and policies for pensioners, social insurance benefits, and monthly allowances, the social insurance agency will organize the payment of pension, social insurance allowance, and monthly allowance according to the new rate as of August 14, 2023.

In the payment period of August 2023, the outstanding difference from July 2023 will be fully refunded.

Thus, the beneficiaries will be paid the pension and social insurance benefits according to the new rate as of August 14, 2023.

Regarding the adjustment of pension, social insurance allowance, and monthly allowance, Decree 42/2023/ND-CP stipulates as follows:

- Increase by 12.5% of the pension, social insurance allowance, and monthly allowance of June 2023 for subjects whose pensions, social insurance allowances, and monthly allowances have been adjusted according to Decree 108/2021/ND-CP.

- Increase by 20.8% of pension, social insurance allowance, and monthly allowance of June 2023 for those who have not yet adjusted their pension, social insurance allowance, and monthly allowance according to Decree 108/2021/ND-CP.

In case, after adjusting the pension, social insurance allowance, and monthly allowance, the benefit level is lower than VND 03 million/month, the adjustment shall be as follows:

- An increase of 300,000 VND/person/month for those with less than 2.7 million VND/person/month;

- Increase to 3 million VND/person/month for people with benefits from 2.7 to less than 3 million VND/person/month.

Announcement of the payment schedule for pensions and social insurance benefits in August 2023

Vietnam Social Insurance has issued Official Dispatch 2206/BHXH-TCKT dated July 20, 2023, announcing the plan to organize the payment of pensions, social insurance benefits, and monthly allowances for the August payment period of 2023.

To ensure that pensioners, social insurance benefits, and monthly allowances enjoy the policies specified in Decree 42/2023/ND-CP as soon as this Decree takes effect. Vietnam Social Insurance announces its plan to pay social insurance benefits in August 2023 as follows:

Time of payment: payment of pension, social insurance allowance, monthly allowance of August 2023, and arrears of the increased difference of July 2023 according to the new benefit rate specified in Decree 42/2023/ND-CP and Circular 06/2023/TT-BLDTBXH from August 14, 2023.

- Social insurance of provinces and centrally run cities:

Pursuant to the funding plan of the Vietnam Social Security System, transfer funds to the post office in a sufficient and timely manner to pay beneficiaries.

Strengthen inspection and supervision of the payment process for beneficiaries, coordinate, solve, and completely handle arising situations, and promptly reflect problems in the implementation process.

Coordinate with the Postal Service to propagate and disseminate benefits according to the new level of entitlement and the effective date of Decree 42/2023/ND-CP, creating consensus and the support of the people in policy implementation.

- Vietnam Post Corporation directs its affiliated units:

Maximize human resource focus, shorten payment time, and ensure timely and full benefits of beneficiaries.

Cooperate with the social insurance agency in propagating and disseminating the content and effect of Decree 42/2023/ND-CP; timely notify the specific payment schedule of the payment period of August 2023 for pensioners, social insurance benefits, and monthly allowances.

Duong Chau Thanh

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