Pensioners not be afraid of inflation: Vietnam Social Security

SGGP
According to the Vietnam Social Security, the pensions of both employees working in the state sector and the business sector are adjusted on the basis of the consumer price index of each period in accordance with the Government's regulations. Therefore, pension will not be depreciated due to devaluation or inflation.
Pensioners not be afraid of inflation: Vietnam Social Security ảnh 1 Pensioners should not be afraid of inflation, according to the Vietnam Social Security

On the afternoon of May 13, following public concerns that the devaluation of the currency will affect pensions, affecting the legitimate interests of pensioners, the Vietnam Social Security informed that this understanding is not accurate, because the current regulations of the social insurance policy have taken into account the factors of inflation and price slippage for the salary paid for social insurance of employees.
These policies not only calculate each pension level but also calculate to ensure the income of pensioners to basically meet life needs during the pension enjoyment process, said Vietnam Social Security.
Specifically, for employees who pay social insurance premiums according to the salary regime prescribed by the State, the salary paid for social insurance shall be adjusted according to the base salary at the time of enjoying the retirement regime for those who participated in social insurance before January 1, 2016.
As for employees who pay social insurance premiums according to the salary regime prescribed by the State but start participating in social insurance from January 1, 2016, onwards and employees who pay social insurance according to the salary regime set by the employer’s decision, the salary for social insurance as a basis for calculating the average monthly salary on which social insurance premiums are based shall be adjusted on the basis of the consumer price index of each period in accordance with the Government's regulations.
Therefore, the employee's pension will be adjusted over time if there is slippage or inflation. According to this agency, 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 adjusted pension 22 times to ensure the life of retirees. In 2022, despite the country’s difficult economic situation, the pension has been adjusted to the general rate of 7.4 percent from January 1, 2022.
This shows that the State's social insurance policy is very interested in the income of pensioners, especially pensioners with low pensions, Vietnam Social Security announced.

By Van Phuc – Translated by Anh Quan

Other news