Methods of calculating pensions, social insurance benefits, and monthly allowances in Vietnam from July 1, 2023

Methods of calculating pensions, social insurance benefits, and monthly allowances from July 1, 2023 (Image from the Internet)

Regarding this issue, LawNet explains as follows:

On June 29, 2023, the Minister of Labor – Invalids and Social Affairs of Vietnam issued Circular 06/2023/TT-BLDTBXH guiding the adjustment of pensions, social insurance benefits, and monthly allowances.

Method of calculating pensions, social insurance benefits, and monthly allowances in Vietnam from July 1, 2023

According to Article 2 Circular 06/2023/TT-BLDTBXH guiding the increase of pensions, social insurance benefits, and monthly allowances from July 1, 2023, as follows:

From July 1, 2023, the level of pensions, social insurance benefits, and monthly allowances for subjects stipulated in Clause 1, Article 1 of Circular 06/2023/TT-BLDTBXH shall be adjusted as follows:

+ Increase by 12.5% on the pension, social insurance benefits, and monthly allowances of June 2023 for the subjects stipulated in Clause 1, Article 1 of Circular 06/2023/TT-BLDTBXH which has been adjusted according to Decree 108/2021/ND-CP. To be specific:

+ Increase by 20.8% on the pension, social insurance benefits, and monthly allowances of June 2023 for the subjects stipulated in Clause 1, Article 1 of Circular 06/2023/TT-BLDTBXH which has not been adjusted according to Decree 108/2021/ND-CP. To be specific:

- From July 1, 2023, the level of pensions, social insurance benefits, and monthly allowances for the subjects stipulated in Clause 2, Article 1 of Circular 06/2023/TT-BLDTBXH after being adjusted according to Clause 1, Article 2 of Circular 06/2023/TT-BLDTBXH shall be adjusted as follows:

+ For people with a level of pension, social insurance benefits, monthly allowances below 2,700,000 VND/month:

+ For people with a level of pension, social insurance benefits, monthly allowances from 2,700,000 VND/month to less than 3,000,000 VND/month:

Funding sources for adjusting pensions, social insurance benefits, and monthly allowances in Vietnam from July 1, 2023

The funding sources for adjusting pensions, social insurance benefits, and monthly allowances applied to the subjects stipulated in Article 1 Decree 42/2023/ND-CP are stipulated as follows:

- The state budget ensures funding for subjects receiving social insurance benefits before January 1, 1995; receiving monthly allowances according to Decision 91/2000/QD-TTg in 2000 on allowances for persons who have reached the retirement age at the time of stopping monthly labor loss benefits, Decision 613/QD-TTg in 2010 on monthly allowances for persons with between 15 to under 20 years of actual working time who have stopped receiving monthly labor loss benefits and persons stipulated at point d, dd, e, and g of clause 1, Article 1 Decree 42/2023/ND-CP;

Receiving pensions under Decree 159/2006/ND-CP on pension regimes for soldiers who directly participated in the resistance war against the US saviors before April 30, 1975, with over 20 years of service who have retired or been demobilized, Decree 11/2011/ND-CP amending and supplementing several articles of Decree 159/2006/ND-CP and Decree 23/2012/ND-CP which stipulate policies for persons participating in the war to protect the Fatherland, performing international duties in Cambodia, supporting Laos from April 30, 1975, with over 20 years of service in the military or police who have retired or been demobilized or resigned.

- The social insurance fund ensures funding for subjects receiving social insurance benefits from January 1, 1995, onwards, including those receiving pensions and monthly allowances according to:

Decree 92/2009/ND-CP on titles, quantities, and several policies for officials and public servants in communes, wards, commune-level towns and persons working without specialist responsibilities at the commune level

Decree 34/2019/ND-CP amending and supplementing several regulations on commune-level officials and persons working without specialist responsibilities at the commune level, in villages, and neighborhood groups

Decree 121/2003/ND-CP on policies for officials and public servants in communes, wards, and commune-level towns

Decree 09/1998/ND-CP amending and supplementing Decree 50/CP of 1995 on living expenses policies for officials in communes, wards, and commune-level towns.

(Article 3 Decree 42/2023/ND-CP)

See also Circular 06/2023/TT-BLDTBXH effective from August 14, 2023. The regulations in Circular 06/2023/TT-BLDTBXH are implemented from July 1, 2023.

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