According to Resolution No. 104/2023 on the State budget estimate for 2024 passed by the 15th National Assembly at its 6th session, starting from July 1st, a comprehensive wage policy reform will be implemented in accordance with Resolution No. 27 of the 7th Central Executive Committee.
At the same time, the resolution will adjust pensions, social insurance benefits, monthly allowances, preferential allowances for people with meritorious services, and some social security policies linked to basic wages.
Because both wage reform and pension increase will take effect from July 1st, there will be two cases of pension increase after wage reform.
People receiving pension payments.
Case 1 is for those who are specifically eligible for pension increase.
Typically, when there is an official document about adjusting pensions, the contents of the document will specify the eligible beneficiaries. For example, in the pension increase round in July 2023 under Government Decree No. 42/2023, the eligible beneficiaries are specifically identified in Article 2 of Government Decree No. 42/2023.
Therefore, regarding the adjustment of pensions from July 1st, those who belong to the eligible group will receive a pension increase.
Case 2 is for those who receive a wage increase through wage reform.
According to Resolution 27, wage reform will be implemented in a spirit that does not reduce wages. At the same time, considering the case where the regional minimum wage is increased from July 1st, when wage reform in 2024 increases the wages of the participants in social insurance, the average monthly wage for social insurance contributions of these participants will also increase.
As the pension amount is calculated based on the average monthly wage for social insurance contributions and the pension benefit rate, if the regulation regarding the pension benefit rate remains unchanged and the average monthly wage for social insurance contributions increases, the pension amount will also increase.
Taking into account the wage reform in 2024 that increases wages, in order to receive a pension increase through the wage reform round, social insurance participants need to meet the following conditions: meeting the pension eligibility criteria, retiring after the wage reform, and having a period of receiving the increased wage in the past.
Prior to 2021, the retirement age for male workers was 60 and for female workers was 55. However, since 2021, Government Decree No. 135/2020 on retirement age has been effective, and the retirement age has gradually increased.
According to Article 4 of Government Decree No. 135, starting from January 1st, 2021, the normal retirement age for workers is 60 years and 3 months for male workers and 55 years and 4 months for female workers.
After that, every year, the retirement age will increase by an additional 3 months for male workers, until reaching the age of 62 in 2028, and by an additional 4 months for female workers, until reaching the age of 60 in 2035.
According to the retirement age increase schedule, the retirement age in 2023 for male workers is 60 years and 9 months, and for female workers is 56 years.
Therefore, in 2024, the retirement age for male workers will be 61 and for female workers will be 56 years and 4 months.
