PENSIONS, SOCIAL ALLOWANCES EXPECTED TO RISE 15 PERCENT FROM 2022

Eight groups of people will enjoy a 15 per cent rise in their pensions and social insurance allowances and monthly subventions from January 1, 2022 when a draft decree on the adjustments of these allowances is issued, according to the Ministry of Labour, Invalids and Social Affairs (MoLISA).

According to the draft document, those who have a monthly allowance of VNĐ2.3 million (US$99.81) and below will receive an additional VNĐ200,000 each per month, while those whose monthly allowances are between VNĐ2.3 million and under VNĐ2.5 million will get an additional allowance to make their total VNĐ2.5 million each per month.

The eight groups subject to the scheme include retired public officials, civil servants, labourers; retired military personnel, police, and cypher workers, who are entitled to monthly pensions; incumbent cadres of communes, wards and towns, and non-specialist employees of communes.

People receiving monthly allowances for loss of working capacity; rubber workers receiving monthly allowances; and those who are receiving monthly allowances for labour accidents or occupational diseases are also expected to enjoy the adjustments.

According to the ministry, the proposed 15 per cent rise aims to make up for the escalation of prices due to inflation, thus maintaining the value of the pensions and allowances for beneficiaries, and sharing the outcomes of economic growth in 2019, 2020 and 2021 to them as there were no adjustments in pensions and social insurance allowances in 2020 and 2021.

The ministry explained that the increase is suitable as it is still lower than the interest rate generated by the investment of capital from the social insurance fund in three years from 2019-2021 at about 17 per cent.

It is estimated that more than 3.5 million people will benefit from the scheme, while a total increase in the payment fund in 2022 will be about VNĐ216 trillion ($9.37 billion).

Source: VNS