Formula for calculating pension when increasing by 8% from July 1st, 9 groups of subjects need to know

The Government issued Decree 162/2026/ND-CP dated May 15, 2026 adjusting pensions, social insurance allowances and monthly allowances.

Accordingly, from July 1, 2026, an additional 8% increase is adjusted on the pension level, social insurance allowance and monthly allowance of June 2026 for the subjects specified in Clause 1, Article 1 of this Decree.

The pension calculation formula when increasing by 8% from July 1, 2026 is as follows:

In addition, the group of subjects in points a, b, c, d, d, e and g, clause 1, Article 1 of this Decree who retired to receive pensions, social insurance allowances, monthly allowances before 1995, after implementing adjustments according to the above regulations, if the pension, social insurance allowance, monthly allowance level is below 3,800,000 VND/month, they will continue to be adjusted to increase as follows:

- An additional increase of 300,000 VND/person/month for people with a benefit level below 3,500,000 VND/person/month;

- Increase to 3,800,000 VND/person/month for people with benefits from 3,500,000 VND/person/month to less than 3,800,000 VND/person/month.

The level of pension, social insurance allowance, and monthly allowance after adjustment according to the provisions of this Article is the basis for calculating the adjustment of pensions, social insurance allowances, and monthly allowances in subsequent adjustments.

9 groups of official subjects will have their pensions and social insurance allowances increased from July 1st

Clause 1, Article 1 of Decree 162/2026/ND-CP stipulates

1. This Decree adjusts the level of pensions, social insurance allowances and monthly allowances for subjects receiving pensions, social insurance allowances and monthly allowances before July 1, 2026, including:

a) Cadres, civil servants, workers, public employees and laborers (including those who have participated in voluntary social insurance, those who retired from the Nghe An farmers' social insurance fund transferred under Decision 41/2009/QD-TTg on transferring Nghe An farmers' social insurance to voluntary social insurance); military personnel, people's police and people working in cryptography who are receiving monthly pensions.

b) Commune, ward, and town officials specified in Decree 33/2023/ND-CP regulating commune-level cadres and civil servants and non-specialized personnel at the commune level, in villages and residential groups, Decree No. 34/2019/ND-CP amending and supplementing a number of regulations on commune-level cadres and civil servants and non-specialized personnel at the commune level, in villages and residential groups, Decree 92/2009/ND-CP on titles, quantities, and a number of regimes and policies for cadres and civil servants in communes, wards, and towns and non-specialized personnel at the commune level, Decree 121/2003/ND-CP on regimes and policies for cadres and civil servants in communes, wards, and towns and Decree 09/1998/ND-CP amending and supplementing Decree 50/CP dated July 26, 1995 of the Government on living expenses for commune, ward, and town cadres receiving monthly pensions and allowances.

c) People who are receiving monthly unemployment benefits according to the provisions of law; people who are receiving monthly allowances according to Decision 91/2000/QD-TTg on allowances for people who have reached retirement age at the time of stopping receiving monthly unemployment benefits, Decision 613/QD-TTg dated May 6, 2010 on monthly allowances for people who have been working for 15 years to less than 20 years and have actually expired the term for receiving monthly unemployment benefits; rubber workers who are receiving monthly allowances according to Decision 206-CP dated May 30, 1979 of the Government Council on policies for newly released workers who do heavy and hazardous work and now are old and weak and have to quit their jobs.

d) Commune, ward, and town officials who are receiving monthly allowances according to Decision 130-CP dated June 20, 1975 of the Government Council supplementing policies and preferential treatment regimes for commune officials and Decision 111-HDBT dated October 13, 1981 of the Council of Ministers on amending and supplementing a number of policies and regimes for commune and ward officials.

d) Military personnel currently receiving monthly allowances according to Decision 142/2008/QD-TTg on implementing the regime for military personnel participating in the anti-American resistance war for national salvation who have worked in the army for less than 20 years and have been demobilized and discharged to their localities, amended and supplemented by Decision 38/2010/QD-TTg and Decision 22/2025/QD-TTg.

e) People's Police are receiving monthly allowances according to Decision 53/2010/QD-TTg regulating the regime for cadres and soldiers of the People's Police participating in the anti-American resistance war who have worked in the People's Police for less than 20 years and have quit their jobs, discharged from the army and returned to their localities.

g) Military personnel, people's police, people working in cryptography who receive salaries as for military personnel, people's police who are receiving monthly allowances according to Decision 62/2011/QD-TTg on regimes and policies for subjects participating in the war to protect the Fatherland, performing international duties in Cambodia, helping Laos after April 30, 1975 who have been demobilized, discharged from the army, resigned, amended and supplemented by Decision 22/2025/QD-TTg.

h) People who are receiving monthly occupational accident and disease allowances.

i) People who are receiving monthly allowances according to the provisions of Article 23 of the Law on Social Insurance No. 41/2024/QH15.

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