As reported by Thanh Nien , Vietnam Social Security (VSS) has just sent its comments to the Ministry of Labor, Invalids and Social Affairs on the plan to adjust pensions, social insurance benefits and monthly allowances in 2024. Accordingly, Vietnam Social Security proposed an increase of 8% for pensioners in both the public and private sectors from July 1, with an estimated cost of more than VND 8,800 billion.

If approved, the state budget is expected to allocate an additional VND1,900 billion in the last 6 months of the year; an additional VND50 billion if the benefit level is adjusted to VND3.5 million per month for those who retired before 1995. The social insurance fund will increase by about VND6,900 billion, not including health insurance contributions.

Vietnam Social Security also proposed to amend the regulations on how to calculate the average salary for social insurance contributions to calculate pensions and one-time social insurance benefits. Accordingly, from July 1, the average salary for social insurance contributions to calculate pensions and social insurance benefits according to the provisions of Clause 1, Article 62 of the 2014 Social Insurance Law, will be applied to employees who have paid social insurance according to the salary regime prescribed by the State before July 1. The period of social insurance contributions from July 1 onwards will be calculated as the average of the entire period of social insurance contributions.

With the proposed method of calculating the average salary for social insurance contributions to calculate pensions and one-time benefits, on average, over 5 years, the pension of employees will increase by about 1.5% (not taking into account inflation). At the same time, the pension of those retiring after July 1, 2024 will only increase by 0.13% compared to those retiring in June 2024.

Explaining the above proposal, Vietnam Social Security said that the pension adjustment of 8% from July 1 is appropriate. The increase is based on the consumer price index of 3.35% and GDP reaching 5.05% in 2023; at the same time, it will also reduce the difference in benefits between pensioners before the salary reform and pensioners from July 1 onwards. This is the general pension adjustment level for all pensioners, including employees who paid social insurance according to the salary level prescribed by the State before retirement and those who paid social insurance according to the salary level decided by the employer.

Prices are up but pensions are low

Many Thanh Nien readers support the proposal to increase pensions from July 1. "The current pension is too low, many elderly people have to save money but still cannot make ends meet. The pension level needs to change to suit the current economic situation and quality of life, otherwise the people will still be the ones who suffer the most," said Thanh Nien reader Nguyen Phung.

Sharing the same view, BD Thuy Nguyen said: "Many people jokingly say that the price of electricity, water, and medicine has increased while pensions remain stagnant. With the current pension level, how can we cover living expenses, not to mention many other arising issues that need to be taken care of. Therefore, considering increasing the maximum pension level is necessary to ensure people's lives."

And BD Trinh Pham wrote: "Old people now have many illnesses, some of which are not covered by insurance. With the current pension, food and living expenses are sometimes not enough, let alone medicine. With the price of goods escalating, the pension received must also be commensurate. Otherwise, the "all fame and no profit" model is a disadvantage for people who have devoted so many years."

"Prices are increasing while pensions are too low. How can we ensure basic living conditions? We support increasing pensions as soon as possible," said Truc Tung.

Increasing pensions is very humane and humane.

BD Quoc Anh said that for himself and many retirees, increasing pensions is something that is very desirable because it helps reduce some of the pressure in life. "If prices are increasing but pensions remain the same, it is really unfair. It needs to change immediately," this BD added.

Similarly, Khanh Tram, the Board of Directors, said: "Currently, the cost of living, electricity and water... has increased for a long time, but pensions are not enough to cover expenses. The proposal to increase pensions is very humane and humane."

Meanwhile, BD Sau Le wrote: "Increasing pension levels is a proposal that needs to be approved soon to help people reduce some of their worries about food and money. They have also spent decades contributing and dedicating themselves to society."