Minimum pension increase

The 2014 Law on Social Insurance stipulates that for employees who have paid compulsory social insurance premiums for at least 20 years, the conditions and levels of pension enjoyment shall comply with the compulsory social insurance policy. The lowest monthly pension of employees participating in compulsory social insurance who are eligible for pension according to the provisions of Articles 54 and 55 of the Law on Social Insurance 2014 is equal to the base salary.

Thus, the lowest monthly pension of this group will increase to VND 1.800.000 from July 1, instead of the current VND 7 million.

Illustrative image (internet)

Increase the level of maternity benefits

The one-time allowance for childbirth or adoption will be adjusted as the base salary increases. Accordingly, the Law on Social Insurance 2014 stipulates that female employees who give birth or adopt children under 6 months of age are entitled to a lump-sum allowance for each child equal to twice the base salary in the month the female employee gives birth or the month the employee adopts a child. In case of giving birth but only the father participates in social insurance, the father is entitled to a lump-sum allowance equal to 2 times the base salary in the month of childbirth for each child.

Thus, from July 1, the one-time allowance when giving birth or adopting a child will be increased to 7 million VND, instead of 3,6 million VND as at present.

In addition, the level of direction of convalescence and recovery regime after childbirth was also increased. The level of enjoyment of a one-day maternity convalescence and rehabilitation regime equal to 30% of the base salary (Clause 3, Article 41 of the Law on Social Insurance 2014) will increase to VND 540.000 (currently VND 447.000) from July 1.

Increase the level of convalescence and recovery after illness

According to Clause 3, Article 29 of the Law on Social Insurance 2014, the level of convalescence and health rehabilitation after being sick for one day is equal to 30% of the base salary.

When the base salary is increased from July 1 to VND 7 million, the level of convalescence and health rehabilitation after illness will increase to VND 1,8, currently VND 540.000.

Increase the level of allowance when working capacity decreases

As for the lump-sum allowance, Article 46 of the Law on Social Insurance 2014 stipulates that employees with a working capacity decrease of between 5% and 30% are entitled to a lump-sum allowance and the level of allowance calculated according to the base salary.

If there is a 5% decrease in working capacity, they will be entitled to 5 times the base salary, which is an increase of 9 million VND compared to the current 7,45 million VND. After that, for every 1% decrease, you will be entitled to an additional 0,5 times the base salary (ie an increase of 900.000 VND instead of 745.000 VND as at present).

As for the monthly allowance, Article 47 of the Law on Social Insurance 2014 stipulates that employees with a working capacity decrease of 31% or more are entitled to a monthly allowance. Accordingly, a 31% decrease in working capacity will be equal to 30% of the base salary, then for every additional 1% decrease, an additional 2% of the base salary will be paid.

Thus, from July 1, for every 7% decrease in working capacity, they will be entitled to a subsidy of 31 VND (currently 540.000 VND), then for every additional 447.000% decrease, they will receive an additional 1 VND (currently 36.000 VND).

The level of service allowance is also increased. For employees with a working capacity decrease of 81% or more but suffering from spinal paralysis or blindness in both eyes or amputation, paraplegia or mental illness, in addition to the monthly allowance, they are also entitled to a service allowance equal to the base salary (ie, from July 1, it will increase to VND 7 million compared to the current level of VND 1,8 million).

Allowance for death due to occupational accident or occupational disease

Article 51 of the Law on Social Insurance 2014 stipulates that if a working employee dies due to a labor accident or occupational disease or dies during the first treatment due to a labor accident or occupational disease, his/her relatives are entitled to a lump-sum allowance equal to 36 times the base salary, from July 1, it will be equivalent to VND 7 million.

Thus, the one-time allowance for death due to occupational accidents and occupational diseases from July 1 will be 7 million VND more than the current allowance of 11,16 million VND.

Illustrative image (internet)

Increase the level of convalescence and health rehabilitation allowance

Clause 2, Article 52 of the Law on Social Insurance 2014 stipulates that the allowance for convalescence and health rehabilitation after treatment for an injury or illness is 25% of the base salary. If taking convalescence and health rehabilitation at home, the benefit rate will increase from July 1 to VND 7 instead of VND 450.000 as at present; equal to 372.500% of the base salary. If convalescence and health rehabilitation at a concentrated facility, the benefit will increase to VND 40 instead of VND 720.000.

Adjustment of funeral allowance, monthly survivorship allowance

Illustrative image (internet)

In case an employee who is eligible for the funeral allowance dies, the person in charge of the funeral will receive a funeral allowance equal to 10 times the base salary. Accordingly, the funeral allowance from July 1 will increase to VND 7 million compared to VND 18 million according to current regulations.

The monthly survivorship allowance for relatives upon death of the employee is also adjusted to increase. The Law on Social Insurance 2014 stipulates that the monthly death benefit for each relative is equal to 50% of the base salary, so it will increase from 745.000 VND to 900.000 VND; In case the relative has no one to directly take care of, the monthly survivorship allowance is equal to 70% of the base salary, increasing from VND 1,043 million to VND 1,26 million.