Vietnam applies new pension policy in 2025

Which groups of subjects will continue to apply 02 additional levels of increase after increasing by 15%? Recently, the National Assembly voted to pass Resolution 159/2024/QH15 on the state budget estimate for 2025. According to Article 3 of Resolution 159/2024/QH15, the implementation of salary policy and some social policies are as follows:

1. On the implementation of salary policy and some social policies

1.1. No increase in public sector salary, pension, social insurance allowance, monthly allowance, preferential allowance for meritorious people in 2025.
1.2. Ministries, central agencies and localities continue to implement solutions to create sources for reforming salary policy according to regulations. Allowing the continued exclusion of certain revenue items when calculating the increase in local budget revenue for salary reform as prescribed in Clause 2, Article 3 of Resolution No. 34/2021/QH15 dated November 13, 2021 of the National Assembly.

1.3. Allowing from July 1, 2024, the scope of using the central budget's accumulated resources for salary reform to adjust pensions, social insurance benefits, monthly allowances, preferential allowances for meritorious people and streamlining payrolls; allowing the use of local budget's salary reform resources to implement social security policies issued by the Central Government and streamlining payrolls.
 

Pensioners receive special benefits in 2025

2. Accordingly, the National Assembly resolved not to increase pensions in 2025.

Allowing from July 1, 2024, the scope of using the central budget's accumulated resources for salary reform to adjust pensions.

Thus, the 2025 pension policy may continue to apply 02 additional increases after increasing 15% for 07 groups of subjects as prescribed in Decree 75/2024/ND-CP. Specifically, in Article 2 of Decree 75/2024/ND-CP, from July 1, 2024, the pension will be increased by 15% and 02 additional increases for some subjects, specifically as follows:

2.1 Increase pension by 15%:

From July 1, 2024, the pension will be adjusted to increase by 15% on the monthly pension of June 2024 for 09 groups of subjects prescribed in Clause 1, Article 1 of Decree 75/2024/ND-CP.

2.2 Add 02 increase levels:

Based on Article 2 of Decree 75/2024/ND-CP, from July 1, 2024, there will be 07 groups of subjects specified in points a, b, c, d, đ, e and g, Clause 1, Article 1 of Decree 75/2024/ND-CP who retired before January 1, 1995, after adjusting the pension increase by 15% on the pension level of June 2024, with a benefit level lower than VND 3,500,000/month, the maximum pension will be adjusted to VND 3,500,000/person/month, specifically increasing according to the following 2 increase levels:

• Level 1: increase by VND 300,000/person/month for those with a benefit level below VND 3,200,000/person/month;
• Level 2: increased to 3,500,000 VND/person/month for those with benefits from 3,200,000 VND/person/month to less than 3,500,000 VND/person/month.

Formula for calculating new pension benefits

Note: According to Article 4 of Resolution 159/2024/QH15, the National Assembly assigned the Government to direct relevant ministries and agencies to study and propose continuing to adjust pension increases in case the socio-economic situation in 2025 is more favorable and resources are balanced, and report to competent authorities for consideration and decision.

3. What are the forms of receiving pensions?

According to Article 18 of the Law on Social Insurance 2014, it is stipulated as follows:

Employees' rights
4.1. To participate in and enjoy social insurance regimes according to the provisions of this Law.
4.2. To be granted and managed a social insurance book.
4.3. To receive pensions and social insurance benefits in full and on time, in one of the following forms of payment:
a) Directly from the social insurance agency or a service organization authorized by the social insurance agency;
b) Through the employee's deposit account opened at a bank;
c) Through the employer.

Accordingly, employees can receive pensions in one of the following 3 forms:

• Directly from the social insurance agency or a service organization authorized by the social insurance agency.
• Through the employee's deposit account opened at a bank.
• Through the employer.

The above is information about the new pension policy applicable in 2025. If you have any questions about the pension increase, please contact hotline Faro Vietnam for advice and support to answer your questions.

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