If this proposal is passed, it will be the highest pension increase ever, demonstrating the Government's special concern for ensuring the stability of retirees' lives. According to the assessment of competent authorities, experts, people, and businesses, the adjustment of pensions with such a high increase this time ensures fairness, harmony, and reasonableness, specifically:

 Increasing pensions and social insurance allowances: ensuring fairness and harmony among beneficiaries. Illustrative Photo

Vietnam has set the target of keeping the CPI under 4-4.5 percent for 2024.

The 15 per cent pension increase is the highest ever, demonstrating the special concern of the Party and State for workers after retirement. According to Article 57 of the current Law on Social Insurance "The Government shall stipulate the adjustment of pension based on the increase in the consumer price index and economic growth to suit the state budget capacity and social insurance fund." Therefore, the proposed 15 per cent adjustment of pensions and social insurance benefits is a high increase compared to the consumer price index and economic growth. According to statistics from the General Statistics Office, in 2023, economic growth reached 5.05 per cent and the consumer price index (CPI) increased by 3.25 per cent. In 2024, in accordance with the National Assembly's Resolution, the Government has set the target of economic growth of over 6 per cent and keeping the consumer price index under 4 per cent. The 15 per cent pension increase adjustment this time is also the highest ever (since 1995, the State has adjusted and increased pensions 23 times).

In addition to monthly pensions, beneficiaries are also granted free health insurance cards throughout their retirement to enjoy the benefits of medical examination and treatment and healthcare paid by the Social Insurance Fund at a rate of 95 per cent.

The 15 per cent pension increase has been carefully calculated and considered in accordance with the contribution capacity of enterprises and workers, the state budget capacity and the Social Insurance Fund. This increase rate ensures fairness, reasonableness, harmony, and sharing between those who are currently receiving pensions and those who are contributing to social insurance, between the state sector and the non-state sector, and between generations participating in and benefiting from social insurance policies.

According to statistics from the Vietnam Social Security, there are about 3.3 million people receiving monthly pensions and social insurance benefits who will receive this 15 per cent increase, including all those who are receiving pensions from previous periods, regardless of whether they worked in the state sector, businesses, or voluntarily participated in social insurance.

The 15 per cent pension increase has been carefully calculated and considered in accordance with the roadmap for adjusting wages between regions, ensuring harmony and fairness among beneficiaries enjoying state pay roll, social allowances for those who sacrificed for the national liberation and independence, social protection allowances, and pensioners with workers currently working in the enterprise sector. In the context of many difficulties facing businesses, it is expected that the minimum regional wage will increase by 6 per cent from July 1, 2024.

Illustrative image (VSS)

With this pension adjustment, Dr. Bui Sy Loi, former Deputy Chairman of the National Assembly's Committee for Social Affairs, said that "in the current difficult conditions, we have controlled inflation, and the expected 15 per cent increase in pensions and social insurance benefits is a great effort by the Government, demonstrating special concern for pensioners."

Upon hearing the proposed increase in pensions and social insurance benefits, beneficiaries are expressing their joy and excitement. Having been retired for nearly 20 years, Nguyen Van An (born 1948, Hanoi), who worked in a government agency, shared that the government has repeatedly adjusted and increased wages. Based on his observation, each adjustment period has seen similar increases for different groups: cadres, civil servants, officials, and retirees. This approach has fostered consensus and fairness for those who retired before and after the wage increase, ensuring that there are no significant disparities.

Regarding the Government's proposal to raise pensions by 15 per cent, An said he believes that the increase is reasonable and adequately addresses social security concerns in the current context.

As a Government agency assigned to implement social insurance and health insurance policies, Vietnam Social Security has always been proactive and prioritised all resources and synchronously deployed solutions, developed specific plans, applied information technology... to ensure the best payment of pensions and social insurance benefits for beneficiaries in a timely, quick, accurate, and safe and effective manner; strengthen the inspection and supervision of the payment process; coordinate to resolve and handle arising situations, promptly reflect any difficulties in the implementation process.