From July 1, 2023, how will pension increases, social insurance benefits and monthly allowances be specifically adjusted?

On November 11, 2022, the National Assembly passed a Resolution on the 2023 state budget estimate. Accordingly, from July 1, 2023, the basic salary for officials, civil servants and public employees will be increased to 1.8 million VND/month, equivalent to an increase of 20.8% compared to the current basic salary. Currently, the applied basic salary is 1.49 million VND/month.

Currently, according to Decree 204/2004/ND-CP, civil servant and public employee salaries are calculated using the following formula: Salary = Basic salary x Salary coefficient.

From July 1, 2023, pensions, social insurance benefits and monthly allowances will be adjusted to increase from 12.5% to 20.8% according to Decree No. 42/2023/ND-CP dated June 29, 2023 of the Government . This Decree takes effect from August 14, 2023. The provisions of the Decree will be implemented from July 1, 2023.