The Ministry of Labor, Invalids and Social Affairs (MoLISA) has proposed that pensions, social insurance benefits, and monthly allowances be increased by 12.5 per cent from July 1.

Under a draft decree submitted recently to the government for appraisal, MoLISA also recommends a rise of 20.8 per cent in the pensions, social insurance benefits, and monthly allowances of those who did not see an increase on January 1, 2022.

Under Article 57 of the Law on Social Insurance, pensions are adjusted on the basis of increases in the consumer price index and economic growth, in accordance with the capacity of the State budget and the social insurance fund.

If approved, such increases would total an estimated VND12.6 trillion ($531 million).