On 15 June 2018, the Government promulgated Decree 88/2018/ND-CP on adjustment of retirement pensions, social insurance allowances and monthly allowances (“Decree 88”).
Accordingly, as from 1 July 2018, the rate of pension, social insurance allowance and monthly allowance is increased by 6.92% compared to the one of June 2018 applicable to the following subjects:
(i) Cadres, civil servants, workers, public employees, employees, soldiers, people’s police and cipher officials who are on monthly retirement pension;
(ii) Those who are on monthly labor accident and occupational disease allowances;
(iii) Those who are on monthly work-capacity loss allowances in accordance with the law;
(iv) Those who are on monthly allowance as prescribed in Decision No. 91/2000/QD-TTg dated 4 August 2000, on the allowance for the people who are out of the labor age at the end of period of receiving monthly work-capacity loss allowances, Decision No. 613/QD-TTg dated 6 May 2010 on monthly allowances for those who have from 15 to under 20 working years and have run out of the period of receiving the monthly work-capacity loss allowance;
(v) Rubber workers who are on monthly allowance;
(vi) Other subjects in the State groups who are on pension, monthly allowance according to Article 1 of Decree 88;
Funding for adjustment of pension, social insurance allowance and monthly allowance for entities as prescribed above is set aside by (i) the State budget for the beneficiaries of social insurance before 1 October 1995 and others entities as specified in Article 3.1 of Decree 88; and (ii) Social Insurance Fund for the beneficiaries of social insurance from 1 October 1995 onwards.
Decree 88 took effect as from 1 July 2018.