More than 564,000 people are receiving pensions under 3 million VND/month

The Summary Report on the implementation of laws on adjusting pensions, social insurance allowances (BHXH), and monthly allowances, the Ministry of Home Affairs cited statistics from Vietnam Social Security, stating that there are 3.4 million people nationwide benefiting from different levels.

Of which, more than 11,500 people are receiving from 20 million VND/month or more; nearly 418,500 people receive from 10 to under 20 million VND/month; about 1.063 million people receive from 6 to under 10 million VND/month; and about 1.347 million people receive from 3 to under 6 million VND/month.

In the low-level group, there are nearly 419,400 people receiving less than 2.34 million VND/month and 144,852 people receiving from 2.34 to less than 3 million VND/month. Thus, the total number of people in this group is about 564,752 people.

The last time the Government adjusted pensions, social insurance allowances and monthly allowances was on July 1, 2024, according to the provisions of Decree No. 75/2024/ND-CP. The additional increase is 15%.

According to the Ministry of Home Affairs, with the implementation of adjusting pensions, social insurance allowances and monthly allowances at 15%, it has helped increase the level of pensions, social insurance allowances and monthly allowances, which has contributed to stabilizing and improving the lives of beneficiaries.

The implementation of additional adjustments for retirees before 1995 has helped narrow the pension gap with retirees after 1995.

However, in the Report summarizing the implementation of laws on adjusting pensions, social insurance allowances and monthly allowances, the Ministry of Home Affairs said that the adjustment of pensions, social insurance allowances, monthly allowances according to Decree No. 75/2024/ND-CP and previous regulations on pension adjustment still reveal some inadequacies and limitations.

First, not ensuring the principle of "contributing - receiving". Because the pension adjustment level is significantly higher than the increase in the consumer price index, exceeding the investment interest rate of the social insurance fund.

Calculated in the period 2016-2025, the pension increase is 71.09%; the increase of the consumer price index is 34.85%; the investment interest rate of the social insurance fund is 67.28%.

This has caused the pension level of retirees to be adjusted up too high, not suitable for the previous contribution level and contribution period to the social insurance fund.

Second, affecting the ability to ensure the long-term balance of the social insurance fund due to the adjustment of pensions, social insurance allowances and monthly allowances at a high level, combined with the impact of population aging (the number of retirees is tending to increase annually), has caused the rate of increase in regime expenditure (retirement and death funds) to exceed the rate of increase in pension and death fund revenue.

Third, the adjustment of pensions to increase generally at a percentage (%) with a high level in the past time has increased the gap in pension levels between retirees.

The higher the pension level, the more people benefit from the pension adjustment, the post-ajustment pension level is used as a basis for implementing the next adjustment (double impact), not entirely due to the principle of "contribution - benefit".

The Ministry of Home Affairs believes that this is increasingly increasing the pension gap between retirees with low pensions and retirees with high pensions. Meanwhile, most retirees today belong to the group with pensions below the average level.

This agency is studying and reporting to competent authorities to implement the new salary policy, which assesses and amends the provisions of the law on social insurance related to overcome the above limitations.

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