“A Proposal to Increase Social Insurance Allowance to 750,000 VND per Month”

According to the Ministry of Labour, Invalids and Social Affairs, 14 provinces and cities have increased social assistance levels beyond the prescribed regulations since the beginning of the year. To keep pace with the upcoming salary reform policies, the Ministry is proposing to raise the monthly allowance standard from 360,000 VND to 500,000 VND or 750,000 VND.

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Vietnam’s Ministry of Labour, Invalids and Social Affairs reported that, in April, the country provided social assistance to approximately 3.38 million people, or 3.38% of the population. This included nearly 1.4 million elderly individuals, 1.7 million people with disabilities, and 16,000 orphans. Additionally, around 150,000 children under three years old, 80,000 single parents raising children under 16, and 80,000 others received social assistance.

The Ministry proposes increasing social insurance allowances from 360,000 VND to 500,000 VND or 750,000 VND per month.

According to the Ministry, 14 provinces and cities have increased social assistance levels beyond those stipulated in Decree No. 20 (the standard for social assistance allowances since July 1, 2021, is 360,000 VND per month). Meanwhile, 32 provinces and cities have added beneficiaries not covered by the decree. Notably, all 63 provinces and cities have implemented cashless payments for social security recipients, benefiting over 2.06 million people, an increase of 261,907 from March.

The Ministry asserted that the comprehensive implementation of social assistance policies has stabilized the lives of beneficiaries, ensuring social security and contributing to social order, safety, and political stability in the country.

Mr. To Duc, Director of the Department of Social Assistance under the Ministry, shared that the Government recently issued a resolution, assigning the Ministry to coordinate with the Ministry of Finance to research and advise on increasing allowances for social assistance beneficiaries.

The Department of Social Assistance has developed a proposal, sought feedback from ministries and sectors, and suggested that the Ministry of Finance consider allocating more resources for this group, taking into account the budget situation in the context of salary reform.

As proposed by the Ministry, if the monthly allowance is increased from 360,000 VND to 500,000 VND, the estimated budget required would be 37 trillion VND per year. If implemented from July, the additional cost would be 4.7 trillion VND. On the other hand, increasing the allowance to 750,000 VND would require an estimated budget of 54 trillion VND per year, with an additional 13 trillion VND needed if implemented from July.

The social assistance group comprises individuals over 80 years old without a pension, people with severe disabilities, abandoned children, and others in vulnerable situations.

SOURCEcafef
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