Pensions are proposed to be increased to 3.8 million VND/month for people who retired before 1995

The Ministry of Home Affairs is seeking opinions on the draft Circular guiding the adjustment of pensions, social insurance (SI) allowances and monthly allowances.

According to the draft, the adjustment applies to subjects who are receiving pensions, social insurance allowances and monthly allowances according to the Government's regulations, with the expected implementation time from July 1, 2026.

The Ministry of Home Affairs proposed 2 adjustment options. In the first option, some groups of subjects will receive an increase of 4.5% and an additional 200,000 VND/month compared to the benefit level of June 2026; the remaining groups will receive an increase of 8%.

The second option, the Ministry of Home Affairs proposes to simultaneously increase by 8% on the benefit level of the month immediately preceding the adjustment time for all subjects subject to application.

These increases are calculated based on the actual benefit level of June 2026 and will be the basis for determining the new benefit level from July 2026.

In addition to the general increase, the draft Circular stipulates a mechanism to adjust and supplement for people with low benefit levels, mainly cases of retirement for pensions, social insurance allowances and monthly allowances before January 1, 1995.

Accordingly, after adjusting according to one of the two options mentioned above, if the benefit level is still low, the beneficiary will continue to be adjusted.

People with pensions, social insurance allowances and monthly allowances from 3.5 million VND/month or less will receive an additional 300,000 VND per month. In case the benefit level is over 3.5 million VND but below 3.8 million VND/month, it will be adjusted to increase to 3.8 million VND/month.

This regulation applies to groups of retirees receiving pensions before 1995 after adjusting according to the general level but still having a benefit level below 3.8 million VND/month, in order to ensure that the benefit level after adjustment is not lower than this threshold.

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