The Ministry of Labor, Invalids and Social Affairs (MoLISA) has proposed raising the monthly social allowance for social protection beneficiaries.

This forms part of the ministry’s draft amendments to Government Decree No. 20 on social assistance policies for social protection beneficiaries.

The draft decree outlines two options for raising the social allowance.

Under the first option, it would increase from VND360,000 ($15) to VND500,000 ($21). The annual budget required for funding would be over VND37.1 trillion ($1.54 billion), up nearly VND10 trillion ($42 million) compared to existing policy.

Under the second option, the monthly allowance would rise to VND750,000 ($31.3). An estimated budget of VND54 trillion ($2.25 billion) would be needed, up VND26 trillion ($1.08 billion) from the existing policy.

MoLISA said the current allowance is low, equivalent to 17 per cent of average per capita income and only supports part of people’s basic needs.

The draft Decree is expected to take effect from July 1, 2024.