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Vietnam Proposes Increase in Social Pension Benefits, Millions to Benefit
๐Ÿ‡ป๐Ÿ‡ณ Vietnam /Economy & Trade

Vietnam Proposes Increase in Social Pension Benefits, Millions to Benefit

From Tuแป•i Trแบป · (1d ago) Vietnamese

Translated from Vietnamese, summarized and contextualized by DistantNews.

TLDR

  • Vietnam's Ministry of Health proposes increasing the social welfare allowance to 540,000 VND per month from July 1, 2026, up from the current 500,000 VND.
  • This adjustment aims to account for inflation and the rising cost of living, ensuring the allowance remains a crucial safety net for vulnerable populations.
  • The proposal is expected to increase the state budget by approximately 1.83 trillion VND in 2026 and will benefit around 4.5 million people, including a significant rise in elderly recipients.

The Ministry of Health's proposal to raise the social welfare allowance is a significant step reflecting the Party and State's consistent care for vulnerable citizens. This adjustment, set to take effect from July 1, 2026, will see the monthly allowance increase to 540,000 VND, a necessary measure to combat inflation and ensure the "final safety net" remains effective.

If the content is approved, the state budget will increase by about 1,830 billion VND in 2026 compared to the previous year.

โ€” Tรด ฤแปฉcDirector of the Social Protection Department, commenting on the financial implications of the proposed increase.

Currently, the 500,000 VND monthly standard falls short, representing only 22.7% of the poverty line for rural areas and 17.8% for urban areas. With projected inflation nearing 12% between 2024-2026, particularly for essential goods like food and healthcare, the current allowance is insufficient. This increase is not just a nominal adjustment; it's a vital recalibration to maintain the purchasing power and dignity of those who rely on it.

The current standard of 500,000 VND per month is only equivalent to 22.7% of the poverty line for rural areas and 17.8% of the poverty line for urban areas.

โ€” Tรด ฤแปฉcExplaining the inadequacy of the current social welfare standard in relation to poverty lines.

The proposal acknowledges the growing number of beneficiaries, with approximately 4.5 million people currently receiving social assistance and social pension benefits. Notably, the number of elderly individuals receiving social pensions has surged by over 1.6 million since 2024, reaching 2.5 million. This expansion underscores the increasing need for robust social support systems.

If not adjusted, the social assistance level will find it difficult to play the role of the 'final safety net' for vulnerable groups.

โ€” Tรด ฤแปฉcHighlighting the importance of the proposed adjustment to maintain social protection.

While the increase is within the state budget's capacity, especially given Vietnam's economic growth prospects, it highlights a broader commitment to social welfare. The Ministry of Health has assured that as the economy grows and budget allocation capacity increases, further adjustments to social assistance and pension levels will be considered. This forward-looking approach ensures that social welfare policies evolve in tandem with national development.

The total number of subjects receiving social assistance and social pension policies nationwide is expanding, currently around 4.5 million people.

โ€” Tรด ฤแปฉcProviding figures on the number of beneficiaries of social welfare policies.
DistantNews Editorial

Originally published by Tuแป•i Trแบป in Vietnamese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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