Minister of Home Affairs Phạm Thị Thanh Trà recently announced that, in addition to the plan to increase the basic salary by 30% from 1.8 million VND to 2.34 million VND, the Government has also proposed to the National Assembly to allow a 15% increase in pensions and social insurance allowances from July 1.

For those receiving pensions before 1995, if the adjusted amount is less than 3.2 million VND per month, it will be increased by 0.3 million VND per month; the adjustment will bring the benefits between 3.2 million VND and less than 3.5 million VND per month, the adjustment will bring the benefits to 3.5 million VND per month.

Pensions and Social Insurance benefits is projected to increase 15% from July 1. (Illustrative image: Internet)

Additionally, the Government proposes to adjust preferential allowances for people with meritorious services to revolution by raising the standard allowance from 2.055 million VND to 2.789 million VND per month (an increase of 35.7%, which is 5.7% higher than the 30% salary increase for civil servants). The current relative levels of preferential allowances for people with meritorious services to revolution compared to the standard allowance will be maintained. Simultaneously, social assistance allowances will be adjusted from 360,000 VND to 500,000 VND per month (an increase by 38.9%).

Along with these adjustments, pensions, social insurance allowances, preferential allowances for people with meritorious services to revolution, and social assistance allowances will be revised in accordance with the principles outlined in Resolution No. 28 of the 12th Central Committee and current legal regulations to ensure consistency.

To implement these policies, the Government proposes expanding the scope of using the accumulated funds for salary reform from the central and local budgets to cover the adjustment of pensions, social insurance allowances, preferential allowances for people with meritorious services to revolution, social assistance allowances, social welfare policies, and staff reduction.

According to statistics, as of the end of 2023, there were approximately 2.7 million elderly people nationwide receiving monthly pensions and social insurance allowances; over 18.2 million social insurance participants, including more than 1.7 million voluntary social insurance participants.

To ensure the life quality of retirees, the National Assembly and the Government have adjusted pensions 23 times from 1995 to the end of 2023. After many adjustments, the current pension levels have increased by 21 to 26 times compared to the pension levels in 1995.

Currently, the average pension for those receiving from the Social Insurance Fund is 5.6 million VND per person per month; for those receiving pensions from the state budget enjoy 4.7 million VND per person per month.

The Government's regular issuance of regulations on pension levels adjustment has played a crucial role in stabilizing the lives of retirees, demonstrating the State's special concern for workers when they reach retirement age. In addition to the monthly pension, retirees also receive free health insurance cards throughout their retirement period, allowing them to benefit from medical examination, treatment, and healthcare services covered by the Health Insurance Fund at a maximum coverage rate of 95%.