Pensions, social allowances expected to rise 15 percent from 2022
Eight groups of people will enjoy a 15 percent 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).
Hanoi (VNA) – Eight groups of people will enjoy a 15percent rise in their pensions and social insurance allowances and monthly subventionsfrom January 1, 2022 when a draft decree on the adjustments of these allowancesis issued, according to the Ministry of Labour, Invalids and Social Affairs(MoLISA).
According to the draft document, those who have a monthly allowancefrom 2.3 million VND (99.81 USD) and below will receive an additional 200,000VND each per month, while those whose monthly allowances are between 2.3million VND and under 2.5 million VND will get 2.5 million VND each per month.
The eight groups subject to the scheme include retiredpublic officials, civil servants, labourers; retired military personnel,police, and cipher workers, who are entitled to monthly pensions; incumbentcadres of communes, wards and towns, and non-specialist employees of communes.
Persons who are receiving monthly allowances for loss ofworking capacity; rubber workers receiving monthly allowances; and those whoare receiving monthly allowances for labour accidents or occupational diseasesare also expected to enjoy the adjustments.
According to the ministry, the proposed 15 percent rise aimsto make up the escalation of prices due to inflation, thus maintaining thevalue of the pensions and allowances for beneficiaries, and sharing theoutcomes of economic growth in 2019, 2020 and 2021 to them as there are noadjustments in pensions and social insurance allowances in 2020 and 2021.
The ministry explained that the increase is suitable as itis still lower than the interest rate generated by the investment of capitalfrom the social insurance fund in three years from 2019-2021 at about 17percent.
It is estimated that more than 3.5 million people willbenefit from the scheme, while a total increase in the payment fund in 2022will be about 216 trillion VND (9.37 billion USD)./.
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Illustrative image (Source: VNA) 
