Currently, the average pension in Vietnam is approximately 6.2 million VND/month (around 255 USD), equivalent to 70% of the average per capita income.
Regarding concerns that pensions in Vietnam are low, Mr. Pham Truong Giang, Director of the Social Insurance Department under the Ministry of Labor, Invalids and Social Affairs, stated that the current average pension stands at 6.2 million VND (approximately 255 USD) per person.
According to Mr. Giang, international practice shows that pensions are often compared to the average per capita income. In Vietnam, the average pension is about 70% of the average income, while in many other countries, this ratio is typically only around 30%.
“Therefore, pensions in Vietnam cannot be considered low. Only a segment of workers who retired before 1995 receive relatively modest pensions, as they had shorter working periods and retired earlier,” Mr. Giang explained.
According to statistics from Vietnam Social Insurance, nearly 3.4 million people nationwide currently receive monthly pensions and social insurance benefits.
Since 1995, the National Assembly and Government have adjusted pensions 24 times. After these adjustments, the current pension level has increased by 21 to 26 times compared to 1995.
The most recent adjustment, effective from July 1, 2024, under Decree 75/2024/ND-CP, increased pensions by 15%. For workers who retired before 1995 and whose pensions remained below 3.5 million VND/month (approximately 144 USD) after the 15% increase, further adjustments were made.
Specifically:
- Those receiving less than 3.2 million VND/month (around 132 USD) were granted an additional 300,000 VND/month (approximately 12 USD).
- Those receiving between 3.2 million VND/month (132 USD) and under 3.5 million VND/month (144 USD) had their pensions raised to 3.5 million VND/month (144 USD).
