According to the Decree, those who have pensions, social insurance allowances and monthly subventions of VND2.3 million (nearly US$100) and below will receive an additional VND200,000 each per month.

Those whose pensions, social insurance allowances and monthly subventions between VND2.3 million and under VND2.5 million will get an additional allowance to make their total VND2.5 million each per month.

The adjustment prescribed in the new decree will serve as a foundation for the next adjustments.

The new decree will replace the outdated one which is the Government’s Decree 44/2019/NĐ-CP dated May 20, 2019.

Eight groups eligible for the adjustment are:

1. Cadres, civil servants, public employees and labourers including those who have participated in voluntary social insurance, retirees changing from Nghe An farmer’s social insurance to voluntary social insurance; military personnel, public security forces and cypher workers enjoying monthly pensions.

2. Officials at commune, ward and township levels prescribed in the Government’s Decree No 92/2009/ND-CP dated October 22, 2009 on titles, quantity, regimes and policies for cadres and public employees in communes, wards and townships and non-specialist employees of communes.

Officials at commune, ward and township levels prescribed in the Government’s Decree No 34/2019/ND-CP dated April 24, 2019; Decree No 121/2003/ND-CP dated October 21, 2003; and Decree No 09/1998/ND-CP dated January 23, 1998.

Pensions, social insurance allowances and monthly subventions will be adjusted from 2022.

3. Those enjoying monthly allowances for losing their working capacity as prescribed by law; people receiving monthly allowances under the Prime Minister’s Decision No 91/2000/QD-TTg dated August 4, 2000 on allowances for people who have reached the end of working age at the time of cessation of unemployment benefits; Prime Minister’s Decision No 613/QD-TTg dated May 6, 2010 on monthly allowances for those who have worked for 15 years to less than 20 years and have expired benefits for loss of working capacity.

Rubber workers who enjoy monthly allowances in line with the Government Council’s Decision No 206-CP dated May 30, 1979 on policies towards newly-liberated workers who do heavy and unhealthy occupations but now have to quit their jobs due to old age.

4. Commune, ward and township-level cadres who receive monthly allowances in line with the Government Council’s Decision No 130-CP dated June 20, 1975 on supplementing policies and remuneration regimes for commune officials and Decision No 111-HDBT dated October 13, 1981 on amending and supplementing a number of policies and regimes for commune and ward officials.

5. Soldiers who enjoy monthly allowances under the Prime Minister’s Decision No 142/2008/QD-TTg dated October 27, 2008 on regime for soldiers who participated in the resistance war against the United States with less than 20 years of service in the army and returned to their hometown.

6. Public security forces who enjoy monthly allowances under the Prime Minister’s Decision No 53/2010/QD-TTg dated August 20, 2010.

7. Military personnel and those who work for cypher units, receiving salaries like soldiers and police and benefit from monthly allowances of the Prime Minister’s Decision No 62/2011/QD-TTg dated 9/11/ 2011.

 From January 1, 2022, specific groups will enjoy an increase of 7.4 per cent in their pensions, social insurance allowances and monthly subventions.

8. Those who retired before January 1, 1995 and have pensions, social insurance allowances and monthly subventions of less than VND2.5 million will be eligible for the adjustment.

The adjustment aims to make up for the escalation of prices due to inflation, thus maintaining the value of the pensions and allowances for beneficiaries.

It is expected that about 318,000 people will be subject to additional adjustment, with a budget of about VND573 billion ($23.4 million) in 2022.

The Decree takes effect on January 20, 2022 whereas regulations stipulated in the Decree will take effect as of January 1, 2022. The Government’s Decree No 44/2019/ND-CP dated May 20, 2019 on the adjustment of retirement pensions, social insurance allowances and other types of monthly allowances will immediately expire on January 20, 2022./.