Vietnam Social Security (VSS) has proposed increasing the retirement pension by 8 per cent from July 1.

It said the increase is reasonable and based on increases in the consumer price index (CPI) of 3.25 per cent in 2023 and GDP growth of 5.05 per cent.

The increase will help bridge the disparity between those receiving pensions before salary reform and those receiving pensions from July 1 onwards, according to VSS.

With the proposed increase, it is anticipated that in the second half of 2024, the budget allocated for retirement pensions and social insurance subsidies from the State budget will rise by VND1.9 trillion ($77.5 million).

As of the end of December 2023, there were 2.7 million elderly people entitled to monthly retirement pensions and social insurance subsidies.