Pensions may increase from 2026, but not everyone can
Pensions are adjusted according to the new Social Insurance Law from July 1, 2026, but priority is given to low-paid people who retired before 1995, so not everyone will receive an equal increase.
According to the Social Insurance Law 2024, effective from July 1, 2025, pension adjustments in the coming time will be implemented according to a new mechanism, associated with the consumer price index (CPI) and the ability to balance the state budget as well as the Social Insurance Fund.
Article 67 of the Law on Social Insurance 2024 stipulates that pensions are adjusted based on the increase in the consumer price index, in accordance with the capacity of the state budget and the Social Insurance Fund. This means that when the cost of living increases, the State will consider adjusting pensions to ensure the actual value of the money that retirees are receiving.
Notably, the new law also requires a satisfactory adjustment of pension increases for those with low pensions and those who retired before 1995. This is a group that is suffering a great disadvantage due to the low salary level and social insurance regime in previous periods, leading to a significant difference compared to retirees in later periods. Prioritizing this group aims to narrow the pension gap between generations of workers.
According to regulations, the Government will be the agency that decides specifically on the time, subjects and level of pension adjustment in each period, based on the legalized principles.
Not only applicable to those participating in compulsory social insurance, this adjustment mechanism is also applied to those receiving pensions from voluntary social insurance. Clause 2, Article 99 of the Law on Social Insurance 2024 clearly states that pension adjustment for this group is also implemented according to Article 67, that is, based on the increase in CPI and the capacity of the budget and the Social Insurance Fund.
Thus, in the coming time, the pension increase will no longer be level playing, but will be flexibly adjusted according to the economic situation, inflation and financial capacity of the State, and at the same time, a clear priority will be given to people with low pensions and those who retired before 1995. This is expected to contribute to improving the lives of pensioners in difficult circumstances and ensuring more fairness among generations of retirees.
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