In a small house in Thanh Xuan ward, Ha Noi, 74-year-old Phan Thi Thanh, originally from Hung Yen, a former teacher at Khuong Dinh Secondary School, retired in 2005. With her current monthly pension of 7.2 million VND, Thanh shared that this fixed income is barely enough to cover essential needs.
Upon hearing the news that her pension would be adjusted upwards by 8% from July 1, 2026, according to Decree No. 162/2026/ND-CP, she shared: “I hope the State will have solutions to control and stabilise market prices so that the pension increase will have practical significance.”
Hoang Thanh Hong, 70 years old, a veteran residing in Ngoc Ha ward, Ha Noi, believed that the 8% increase creates fairness and instills great confidence in the leadership of the Party and the State.
Hong expressed: “The people, especially those retired under the Government’s policy, are very pleased with the decision to increase pensions according to the Government decree. Pensions will be adjusted from July 1, 2026, thanks to which the lives of retirees will be significantly improved.”
At the grassroots level, the implementation of social security policies is always a key task to ensure the well-being of the people. Ngo Thi Thuy Lan, Head of the Culture and Social Affairs Department of Ngoc Ha ward (Ha Noi), said that for most retirees, pensions and monthly allowances are their main source of income. Therefore, information regarding pension adjustments under Decree No. 162/2026/ND-CP has received attention and support from many people, especially those with low pension levels.
According to Lan, a notable point of this adjustment is that, in addition to the general 8% increase, the State is paying special attention to the group of long-term retirees with low pensions.
Specifically, for those receiving pensions, social insurance benefits, or monthly allowances before January 1, 1995, if their benefit remains below 3.8 million VND/month after the general increase, they will continue to receive additional support.
“Those with benefits of 3.5 million VND/month or less will receive an additional 300,000 VND/month. For those with benefits higher than 3.5 million VND/month but still below 3.8 million VND/month after the adjustment, their benefit will be raised to 3.8 million VND/month.
Thus, the new policy, in addition to the general adjustment rate, also has a mechanism to provide supplementary support for low-income groups,” Lan explained.
According to her, this adjustment clearly demonstrates the Party and State’s concern for retirees in difficult circumstances, especially those who retired many years ago and whose pensions used as the basis for calculating benefits are still low.
The increase, while not very large, is practically significant in the context of rising living costs, healthcare, and medication expenses for the elderly. At the same time, establishing a minimum benefit of 3.8 million VND/month for this group contributes to narrowing the gap between different pension groups, strengthening sharing, and ensuring social security.
Pham Truong Giang, Director of the Department of Wages and Social Insurance under the Ministry of Home Affairs, emphasised the difference in Viet Nam’s social insurance policy: This adjustment reflects the significant efforts of the budget and insurance fund in sharing the fruits of economic development with workers who have fulfilled their obligations to the country. In international practice, many countries adjust pensions primarily to compensate for inflation.
Meanwhile, in Viet Nam, pension adjustments are linked to the rate of salary increases and the sharing of economic growth benefits. Currently, more than three million people nationwide receive pensions and social insurance benefits, with an average of approximately 7.2 million VND per person per month.
If adjusted upwards by 8%, the average benefit would rise to approximately 7.8 million VND per person per month. In addition, the Party and State pay special attention to those who retired before 1995 and have low benefit levels.
The clear regulations on funding sources in Article No.3 of Decree No. 162/2026/ND-CP also ensure the high enforceability of the policy.
The State budget will ensure funding for those receiving social insurance benefits before January 1, 1995, those receiving benefits under Decisions No. 91/2000/QD-TTg and No. 613/QD-TTg, and military personnel, police officers, and those working in classified positions with special circumstances.
Meanwhile, the Social Insurance Fund will be responsible for paying benefits for those who received them from January 1, 1995 onwards.
The decentralisation and specific assignment of responsibility to the Ministries of Home Affairs, National Defence, Public Security, Finance, and the People’s Committees of provinces and centrally-administered cities to organise timely and accurate payments to beneficiaries from July 1, 2026, demonstrates the seriousness and decisiveness of the Government; strengthening the people’s trust in the social security policies being implemented by the Party and the State.
