From August 1, 2016, Decree 55/2016/ND-CP adjusts the pension, loss of working capacity allowance, monthly allowance, and benefits for preschool teachers who worked before 1995, to take effect.
Article table of contents
Increase in Pensions and Monthly Allowances
The level of pensions and monthly allowances for officials, workers, public employees, and laborers; military personnel, public security personnel, and those working in cryptographic agencies; commune-level officials currently receiving pensions and monthly allowances are as follows:
- An 8% increase in pensions and monthly allowances for laborers starting to receive pensions, monthly allowances from January 1, 2015, to before May 1, 2016.
In cases where an 8% increase was previously applied, the level remains unchanged.
- From May 1, 2016, maintain the current level for subjects who have previously received an 8% increase.- Laborers eligible for social insurance contributions upon retiring from May 1, 2016, onward, will have their pensions calculated based on the new statutory pay rate of 1,210,000 VND/month.
Decree 55 also stipulates an increase in the levels of salaries, allowances for loss of work capacity, and monthly allowances when the beneficiaries have an income level below 2,000,000 VND/month. This content is guided by Circular 23/2016/TT-BLDTBXH (effective from September 1, 2016), specifically:
- For those with pensions from 1,750,000 VND/month or less:
| Adjusted Pension | = | Pre-Adjustment Pension | + 250,000 VND/month || --- | --- | --- | --- |- For those with pensions from above 1,750,000 VND/month to below 2,000,000 VND/month:
| Adjusted Pension | = | 2,000,000 VND/month || --- | --- | --- |- For those with allowances for loss of work capacity, monthly allowances from 1,850,000 VND/month or less:
| Adjusted Allowance | = | Pre-Adjustment Allowance | + 250,000 VND/month || --- | --- | --- | --- |- For those with allowances for loss of work capacity, monthly allowances from above 1,850,000 VND/month to below 2,000,000 VND/month:
| Adjusted Allowance | = | 2,000,000 VND/month || --- | --- | --- |Time of adjustment:
- The 8% increase in pensions is calculated from the month the pension starts.- The adjustment time for those with pensions below 2,000,000 VND/month is calculated from:- January 2016 for those receiving pensions before January 1, 2016;- From the starting month for those beginning to receive pensions from January 1, 2016, to December 31, 2016.
Adjustment of pension levels for preschool teachers with pensions below the statutory pay rate
The pension level for preschool teachers who worked in preschool educational institutions before January 1, 1995, and began receiving pensions before January 1, 2016, or from January 1, 2016, to December 31, 2016:
- If the adjusted pension level is lower than 1,150,000 VND, it will be adjusted to 1,150,000 VND/month for the period from January 1, 2016, to April 30, 2016;- If the adjusted pension level is lower than 1,210,000 VND, it will be adjusted to 1,210,000 VND/month from May 1, 2016, onward;
Time of adjustment:
- From January 1, 2016, for those receiving pensions before January 1, 2016;- From May 1, 2016, for those receiving pensions before May 1, 2016;- From the starting month for those beginning to receive pensions from January 1, 2016, to December 31, 2016.
Example: Mrs. A is a preschool teacher who worked in a preschool educational institution before January 1, 1995, and began receiving pensions from March 1, 2015, with a pension level at the time of March 2015 being 800,000 VND/month.
- Mrs. A is eligible for an 8% increase:
Her pension after the 8% adjustment is: 800,000 VND/month x 1.08 = 864,000 VND/month;- As her pension is lower than 1,750,000 VND/month, Mrs. A is eligible for an additional 250,000 VND/month increase per point a, paragraph 1, Article 3 of Circular 23:
Her pension after the additional increase is: 864,000 VND/month + 250,000 VND/month = 1,114,000 VND/month;- As Mrs. A's pension as of January 1, 2016, is lower than 1,150,000 VND/month, she is eligible for an increase to 1,150,000 VND/month; as of May 1, 2016, it is lower than 1,210,000 VND/month, she is eligible for an increase to 1,210,000 VND/month per paragraph 1, Article 4 of Circular 23.
Thus, Mrs. A's pension is adjusted as follows:
- From March 2015 to the end of December 2015, it is 864,000 VND/month;- From January 2016 to the end of April 2016, it is 1,150,000 VND/month;- From May 2016 to the end of December 2016, it is 1,210,000 VND/month.
