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| A group of elderly people are doing exercise before pandemic time - Illustration photo |
Under Decree 108, the seven groups of people will enjoy a 7.4 percent rise in their pensions and social insurance allowances and monthly subventions from next year.
Those who have a monthly allowance of VND2.3 million (US$99.81) and below will receive an additional VN200,000 each per month, while those whose monthly allowances are between VND2.3 million and under VND2.5 million will get an additional allowance to make their total VND2.5 million each per month.
Decree 108 shall come into effect from January 20, 2022.
The seven groups subject to the Decree include retired public officials, civil servants, laborers; retired military personnel, police, and cypher workers, who are entitled to monthly pensions; incumbent cadres of communes, wards and towns, and non-specialist employees of communes.
People receiving monthly allowances for loss of working capacity; rubber workers receiving monthly allowances; and those who are receiving monthly allowances for labor accidents or occupational diseases are also expected to enjoy the adjustments.
Earlier, in March, the Ministry of Labour, Invalids and Social Affairs (MoLISA) proposed adjustments of these allowances with a 15 percent rise in their pensions and social insurance allowances and monthly subventions from January 1, 2022.
According to the ministry, the proposed 15 percent rise aims to make up for the escalation of prices due to inflation, thus maintaining the value of the pensions and allowances for beneficiaries, and sharing the outcomes of economic growth in 2019, 2020 and 2021 to them as there were no adjustments in pensions and social insurance allowances in 2020 and 2021.
The ministry explained that the increase is suitable as it is still lower than the interest rate generated by the investment of capital from the social insurance fund in three years from 2019-2021 at about 17 per cent.
It is estimated that more than 3.5 million people will benefit from the scheme, while a total increase in the payment fund in 2022 will be about VND216 trillion (US$9.37 billion)./.
(Source:VGP)
