According to the VSS, it’s appropriate that pensions should be adjusted for the increase in the cost of living as measured by the Consumer Price Index (CPI) at 3.25 percent and the economic growth rate of 5.05 percent in 2023. The VSS proposed that the pension should be increased by 8 percent to protect pension against the impact of inflation and to ensure it does not lose value over time.
The proposal for an increase in pension aims to reduce the disparity between those receiving pension before the salary reform and those receiving pension from July 1 onwards.
With the proposed increase of 8 percent, it is anticipated that in the last 6 months of 2024, the budget allocation to meet the rise in pension and social insurance subsidies from the state budget will be approximately VND1,900 billion (US$77,631,036).
