Increasing pensions, the gap between high and low benefits becomes larger

Related to proposed adjustments pension from July 1 to here Professor Dr. Giang Thanh Long, senior lecturer at National Economics University, expert with many years of experience experience in the field of population – development and social insurance.

In terms of principles Giang Thanh Long stated that pensions are adjusted according to price fluctuations to people’s living standards in the short term and partly related to state budget.

In determining the pension increase, the doctor said that the calculations of the Ministry of Finance are very important. In fact, beneficiaries always want a high salary increase, and policy makers always try to calculate a reasonable salary increase to help improve the lives of retirees. The general principle is that an increase in salary beyond the allowable financial capacity cannot happen.

On the other hand, according to the contribution – benefit principle of social insurance, the pension adjustment level is applied equally among subjects.

But this leads to an increasingly wide gap between the highest and lowest pension levels. Because when adjusting the same coefficient, the higher the benefit level, the more money will increase.

According to Mr. Giang Thanh Long, in fact, many pensioners still do not have enough to ensure their life. This group is vulnerable in terms of income and has no alternative source of income.

That is why population and social security experts believe that there should be more attention to adjusting the increase to a higher level. The really low pension group has no alternative source of income to ensure part of their old life.

Pension benefits proposed by the Ministry of Labor, War Invalids and Social Affairs to increase by 15% from July 1, 2024according to the report on the impact of the new salary policy on the implementation of the social insurance policy recently implemented by the Ministry of Finance.

The Ministry of Finance requests the Ministry of Labor – Invalids and Social Affairs reviewed and recalculated specific adjustment plans to ensure compliance with the principles and legal basis in the provisions of the Social Insurance Law on pension adjustments for retirees based on on the basis of the increase in consumer price index and economic growth in accordance with the state budget and the Social Insurance FundResolution No. 28-NQ/TW…

In April, Ministry of Labor – War Invalids and Social Affairs will present a draft Decree adjusting pensions, social insurance benefits and monthly benefits.

Currently, there are nearly 34 million people receiving monthly pension benefits. From 2016 to 2023, the Government has repeatedly adjusted monthly pensions and social insurance benefits with the corresponding adjustment levels: 8% (2016); 744% (2017); 692% (2018); 719% (2019); 74% (2022); 125% (2023) above the current pension level.

In addition to adjusting pensions and social insurance benefits, the Ministry of Labor, War Invalids and Social Affairs has developed a draft Decree amending and supplementing Supplementing a number of articles of Decree No. 20/2021/ND-CP dated March 15, 2021 of the Government regulating social assistance policies for social protection subjects.

At the draft drafting this Decree, the Ministry proposes that the standard social assistance level applicable from July 1, 2024 is 500,000 VND/month.

If approved at the same time from July 1, pensions and social insurance benefits Society and social assistance standards will be adjusted.

The Ministry of Labor, War Invalids and Social Affairs said that currently the country has about 161 million elderly people, accounting for over 16% of the population. Of these, more than 54 million elderly people are receiving pensions, social insurance benefits, and preferential benefits for people with meritorious services to the revolution. More than 15 million elderly people have health insurance cards.