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Wednesday, October 27, 2021

Pensions, social allowances expected to increase 11% from 2022

The Saigon Times

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HCMC – The Ministry of Labor, Invalids and Social Affairs has proposed increasing pensions, social insurance allowances and monthly subventions by 11% from next year instead of 15% as proposed last month.

The ministry has submitted the proposal to the Government, explaining that the Government decided to adjust pensions and social allowances on July 1, 2019, but the adjustments have yet to be applied due to the Covid-19 pandemic, the local media reported.

In the 2019-2021 period, the average consumer price index has risen 10.35%, while the economic growth rate has reached 5.5%. Therefore, the 15% increase in pensions, social insurance allowances and monthly subventions is reasonable.

However, the Government needs to prioritize resources for the fight against the pandemic, so the Ministry of Labor, Invalids and Social Affairs proposed raising pensions, social insurance allowances and monthly subventions by 11%.

If approved, the State will pay around 868,000 people over VND4.6 billion next year, while the social insurance fund will pay VND14.7 trillion to about 2.13 million people.

Those who have a monthly allowance of less than VND2.5 million will receive VND2.5 million each per month. Some 318,000 people in eight groups will benefit from the hike with a total increased value of VND573 billion.

According to the Ministry of Labor, Invalids and Social Affairs, some other ministries and agencies had suggested raising pensions, social insurance allowances and monthly subventions from July 1, 2022, when the regional minimum wage may be increased to reduce the gap between the pensions and allowances of those retiring before and after that time. However, the ministry insisted on increasing them from January 1, 2022, as it is unknown if the regional minimum wage will be raised.

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