According to the draft circular on adjusting pensions, social insurance benefits, and monthly allowances being considered by the Ministry of Home Affairs, there are two different increase options to be applied from July 1, 2026. The adjustment is calculated based on the benefit level of June 2026.

Option 1 combines a percentage increase with an absolute cash addition: some groups receive a 4.5 percent increase plus an additional VND200,000/month; remaining groups enjoy an 8 percent increase.

Option 2 applies a uniform 8 percent increase for all subjects, following a simpler and easier-to-implement direction.

Notably, alongside the general increase, the draft stipulates a supplementary adjustment mechanism for those with low benefit levels, primarily cases of retirement, social insurance benefits, and monthly allowances starting before January 1, 1995.

Accordingly, after adjusting according to one of the two options, if the benefit level remains low, the beneficiaries will continue to receive a further increase.

Specifically, those with a benefit level of VND3.5 million/month or less will receive an additional VND300,000/month. Cases with a benefit level above VND3.5 million but below VND3.8 million/month will be raised to VND3.8 million/month.

This regulation aims to ensure that after adjustment, no person receives a pension or allowance below VND3.8 million/month.

The draft circular is expected to take effect from July 1, 2026, serving as the basis for agencies to organize payments and implement them nationwide.

Flexible policy options

Commenting on the draft, economic expert Nguyen Thuong Lang (National Economics University) said offering higher increases for the group that retired before 1995 and those with low social insurance benefits is appropriate. 

These are specific subjects, most of whom are elderly and have made many contributions during difficult periods, yet their benefit levels remain limited. Increasing income for this group holds not only economic significance but also spiritual recognition.

However, according to Lang, policies should be designed to be more flexible, with increases that clearly "compensate" low-income earners, and categorize groups for different adjustments.

Those with low pensions should receive higher increases, while groups with high benefit levels could receive smaller increases or remain stable, aiming for harmony within the social security system.

He also noted that if a uniform increase is applied, those receiving pensions of tens of millions or even hundreds of millions of VND each month will see a very large absolute increase when raised by 8 percent, far exceeding the group receiving only about VND5-6 million.

“It is understood that high or low pensions are based on social insurance contribution levels. However, annual pension adjustment policies need to prioritize those in difficult circumstances more,” Lang said. 

If adjusted in a 'flat' manner, low beneficiaries only receive an additional few hundred thousand VND, which is difficult to compensate for the increasingly rising cost of living.

“Therefore, the low-pension group should be given a higher increase. This not only helps improve living standards but also contributes to creating social consensus and stability,” Lang stated.

This opinion is supported by many VietNamNet readers. 

Duy Hy Nguyen wrote: “I absolutely agree with Lang’s opinion, because this is the superiority in the social security policy of the Party and Government, and the greatest wish of the vast majority of retirees before 1995 who are facing many life difficulties because their wages are too low while illnesses are too many!”

Reader Nguyen Minh Thu agreed: “The people receiving social allowances currently receive very low levels; it is necessary to raise the benefit level for this group. For example, my relative is over 80 years old this year and receives a survivor allowance; after many adjustments until this point, it has only reached the level of VND936,000, which is quite low.”

The number of people receiving pensions before 1995 is not large; therefore, in addition to the general pension increase, the state should extract money from the budget for those who retired before 1995 as an amount of VND500,000 or VND1 million. This would both meet the "contribution-enjoyment" principle and be humane.

Meanwhile, reader Ba Dang suggested that pensions should be increased for those under VND15 million/month. As for those above VND15 million/month, they should not receive an increase this time to ensure that pension levels become closer and to reduce the current high disparity.

Vu Diep