Pensions adjusted for CPI and economic growth

Vietnam Social Insurance has just informed about the employee’s pension policy.

Accordingly, if employees participate in social insurance when they meet the retirement age and participation time requirements, employees will enjoy a monthly pension – a stable source of income to ensure their life in old age and throughout their life. retirees are granted a free health insurance card (with 95% of medical examination and treatment expenses) for health care.

Notably, the pension level is not fixed at the time of retirement but is periodically adjusted up according to the consumer price index (CPI) and economic growth to ensure the life of retirees. Therefore, pensioners always have their value preserved and are not at risk when the currency depreciates.

In principle, according to the information of Vietnam Social Insurance, the social insurance benefit is calculated on the basis of the payment rate, the time of payment of social insurance and sharing among the participants of social insurance. The level of pension enjoyment is proportional to the level of social insurance payment and the time of payment of social insurance, which means that the higher the level of payment of social insurance, the longer the period of payment of social insurance, the higher the pension will be.

In fact, there are some cases of pension enjoyment with a low level of benefit, mainly because employees pay social insurance premiums at a low rate, the time of social insurance payment is only minimal, there are also many cases where due to the early retirement of employees before the prescribed age, leading to a reduction in the percentage due to early retirement (currently, each year of early retirement will decrease by 2% for both men and women).

Some wondered, the devaluation of the currency will affect pensions, social insurance said that this understanding is not accurate, because in fact, the provisions of the social insurance policy have taken into account the factor of inflation or price slippage for the pension system. with the salary paid for social insurance of employees not only when calculating the pension enjoyment rate but also ensuring this factor during the employee’s pension enjoyment for the purpose of ensuring that the basic pensioner’s income meets the meet the needs of life.

Over the past time, the pension level of retirees has been continuously raised, on the basis of the increase of the consumer price index and economic growth in line with the state budget and the social insurance fund. Since 1995, the State has made 22 adjustments to pensions to ensure the life of retirees.

In 2022, despite the difficult economic situation, the pension has been adjusted to the general rate of 7.4% from January 1, 2022. Those who retire before January 1, 1995, but after adjusting to the general level, if the monthly pension or social insurance allowance is less than VND 2,500,000/month, they will continue to be further adjusted.

According to Social Insurance, this shows that the State’s policy is very interested in the income of pensioners, especially pensioners with low pensions.

In fact, the social insurance agency – the unit that organizes the implementation of the policy has received many elderly people’s shares about their satisfaction with their current pension and encourages their children and grandchildren to participate in social insurance fully and correctly. regulation.

Besides, there are also many opinions sharing about the regret of employees who have received one-time social insurance, now want to pay back the one-time social insurance money received, continue to pay voluntary social insurance to enjoy the benefits. pension and have a free health insurance card (during the pension period) for health care. Because of old age, illness is always “not invited to come”, many elderly people still have to work hard to make a living and are under pressure of hospital fees whenever they are unfortunately ill.

It can be said that increasing pensions with the view to improving the lives of retirees and alleviating difficulties, especially those with low pensions and social insurance benefits, has always been of interest to the Party and State. The government has repeatedly adjusted the pension increase over time, showing that the life of retirees is gradually improving.

Therefore, Vietnam Social Insurance affirms, employees can completely rest assured and trust to participate in social insurance policies of the Party and State, participating in social insurance is the most optimal choice to have a pension and insurance card. Health insurance is the most solid support for employees when they get old.

According to Nguyen Nga