Contributing to social welfare stability.

On June 29, the National Assembly approved Resolution of the 7th Session of the 15th National Assembly. The resolution agreed the implementation of wage reform measures, adjustments to pensions, social insurance allowances, preferential benefits for people with meritorious services, and social allowances from July 1, 2024. Specifically, the base salary for officials, civil servants, public employees, and armed forces shall increase from 1.8 million VND to 2.34 million VND per month (an increase of 30%). The standard allowance shall rise by 15%, from 2.055 million VND to 2.789 million VND per month (an increase of 35.7%), while maintaining the current proportional relationship of preferential allowances for people with meritorious services to the standard allowance. Social allowances shall be adjusted according to the standard from 360,000 VND to 500,000 VND per month (an increase of 38.9%). The regional minimum wage shall be increased by 6% compared to 2023, corresponding to an increase of 200,000-280,000 VND.

According to the Ministry of Home Affairs, preliminary data indicates that the adjustment of salaries, pensions, social insurance benefits, and allowances for people with meritorious services shall impact around 18 million social insurance beneficiaries; Approximately 50 million people shall receive support from the State budget for health insurance contributions, about 16 million students, and 30 million people related to policies supported by Provincial People's Council Resolutions... The increase in salaries for all wage earners and the increase in allowances shall have a positive impact on many groups, creating a good effect and ensuring balanced, fair, and equitable relations among those receiving salaries, allowances, and policies related to the base salary. This shall foster broad consensus and unity within society. Consequently, it shall help improve the living standards of wage earners, individuals receiving allowances, and those benefiting from support policies linked to the base salary.

The majority of retired individuals rely primarily on their monthly pension payment to sustain their living expenses. Therefore, when these payments increase, it provides retirees with an opportunity to improve their quality of life

The Government's proposal to increase salaries has been approved, bringing joy to many people. Ms. Cao Tuyết Lê, a teacher at a public elementary school in Hanoi, expressed enthusiasm about this: "Not only me, all my colleagues and friends are also eagerly awaiting the salary increase. The price of goods has increased significantly in recent years, far surpassing salaries, causing many people to tighten their expenses and save to balance expense and income."

Ms. Lê also shared that she used to consider "leaving government employment" to seek opportunities for increasing income elsewhere. Now, with the news of a salary increase of up to 30%, she continues her work and dedication. It's evident that increasing the base salary shall help improve the lives, contributing to motivating workers to enhance productivity and efficiency. Moreover, these reforms in salary policies and the base salary increase contribute to promoting economic and social growth, ensuring the state budget to sustain expenditures during the 2024-2026 period, and advancing social progress and equity..

Contributing to the quality of life improvement

Beneficiary groups are all excited with the news of salary increase. Mr. Truong Cong Phu (85 years old, Long Bien District, Hanoi) expressed his happiness with the prospect of receiving a salary increased by two times in the past two years. Currently, Mr. Phu's pension is approximately VND 12.1 million per month, and it is expected to rise around VND 14 million per month after July 1. According to Mr. Phu, this amount is sufficient to ensure his livelihood without relying on his children. “The expenditure for most retirees mainly depends on their monthly pension. Therefore, with pension increase, the quality of life for the beneficiaries also improved,” Mr. Phu said.

Mr. Tran Van Mat (Ha Dong District, Hanoi), a retired official, expressed that the pension increase is a very appropriate policy by the Party and State. Pensioners whose lives heavily rely on their pensions, and , old age often pays increased medical expenses for medications and treatments. Many families, including their own children, face financial difficulties. Therefore, any additional amount is valuable. Especially with this 15% increase, it shall help pensioners improve their quality of life. “After July 1, 2024, I am confident that daily life shall be more stable. With health insurance and savings from before, even if I fall ill, I shall be well-prepared,” Mr. Mat enthusiastically shared.

Mr. Tran Van Mat (Ha Dong District, Hanoi City

According to Mr. Mat, in May 2024, he received assistance from local authorities in Hà Dong District to switch his pension payment method, and the bank supported him opening a free ATM account. From the July 2024 pension payment period, Mr. Mat will receive his pension through a bank account, which is more convenient than the direct payment method. Mr. Mat mentioned that the July 2024 payment period brings him "dual benefits"—receiving his pension via ATM and enjoying the new pension rates.

Pension payments and cashless transactions are not only quick and convenient but also safe and time-saving. Receiving salary in this way ensures safety, saves time, and eliminates without coming to the payment points to receive pension and sign. I am truly very satisfied,” Mr. Mat enthusiastically shared.

According to statistics, by the end of 2023, approximately 2.7 million elderly people received monthly pensions and social insurance allowances across the country, and more than 18.2 million social insurance participants, including over 1.7 million voluntary social insurance participants. To ensure a stable living for retirees, from 1995 to the end of 2023, the National Assembly and the Government have implemented 23 pension adjustment times. After several adjustment times, the current pension level has increased by 21 to 26 times compared to the pension levels in 1995. Currently, the average monthly pension from the social insurance fund is VND 5.6 million per person, while those receiving it from the state budget average VND 4.7 million per person./.