The proposed increase is 4 percent lower than the figure of 15 percent the MoLISA had previously suggested. It was made after receiving ideas from the Ministry of Justice and Vietnam Social Security.

According to the MoLISA, the pension is adjusted based on the increase of the consumer price index and economic growth as well as in line with the capacity of the state budget and the social insurance fund.

The latest adjustment of the pension was in 2019, the ministry said. Since then, the consumer price index has increased by 10.3 percent while the average GDP has risen by 5.5 percent per year. Thus, the adjustment should be 15 percent.

However, in the context of the COVID-19 pandemic, the Government needs to prioritise financial resources for pandemic prevention and control, so the ministry proposed increasing the allowances by only 11 percent.

Under the proposal, those who have a monthly allowance of 2.3 million VND (100 USD) and below will receive an additional 200,000 VND each per month, while those whose monthly allowances are between 2.3 million VND and under 2.5 million VND will get an additional allowance to make their total 2.5 million VND each per month.

It is expected that about 318,000 people will be subject to additional adjustment, with a budget of about 573 billion VND in 2022.

According to the MoLISA, nearly 3 million people will benefit from the scheme covered by the social insurance fund and the state budget, with a total increase in the payment fund in 2020 will be 19.3 trillion (843 million USD)./.

Source: VNA

Pensions, social allowances expected to rise 15 percent from 2022

Eight groups of people will enjoy a 15 percent rise in their pensions and social insurance allowances and monthly subventions from January 1, 2022 when a draft decree on the adjustments of these allowances is issued.