Decree 108/2021/ND-CP adjusting pensions, social insurance allowances and monthly allowances

Decree 108/2021/ND-CP, issued by the Government on 7 December 2021, adjusts pensions, social insurance allowances, and monthly allowances. It is based on the 2014 Social Insurance Law and National Assembly Resolution 34/2021/QH15 on the 2022 State budget. For pension calculations, the central provisions are the increase rate and the floor amounts that took effect on 1 January 2022. Article 1 lists the people covered: those who were already receiving a pension, social insurance allowance, or monthly allowance before 1 January 2022. This includes cadres, civil servants, workers, public employees, and employees (including voluntary social insurance participants and people transferred from the Nghe An farmers' social insurance fund under Decision 41/2009/QD-TTg), military personnel, people's police, and cipher workers drawing monthly pensions. It also covers commune-level cadres under Decrees 92/2009/ND-CP, 34/2019/ND-CP, 121/2003/ND-CP, and 09/1998/ND-CP; recipients of monthly loss-of-working-capacity allowances; rubber workers on monthly allowances under Decision 206-CP; and several categories of veterans and police drawing monthly allowances under various Prime Minister decisions. A further group consists of people who retired before 1 January 1995 and, after the percentage adjustment, still have a pension or allowance below 2,500,000 dong per month. Article 2 sets the timing and amount of adjustment, the key calculation inputs. From 1 January 2022, pensions, social insurance allowances, and monthly allowances of the people in Clause 1 are increased by 7.4 percent over the level paid in December 2021. For those who retired before 1 January 1995 and remain low after that increase, additional flat top-ups apply: people at 2,300,000 dong per month or below receive an extra 200,000 dong per month, while people between 2,300,000 and under 2,500,000 dong per month are raised up to 2,500,000 dong per month. The adjusted amount becomes the base for calculating future adjustments. Article 3 sets the funding sources. The State budget covers people who entered social insurance entitlement before 1 October 1995 and various listed allowance and veteran-pension schemes, while the social insurance fund covers those with entitlements from 1 October 1995 onward, including commune cadres under the decrees noted above. In summary, the decree applies a 7.4 percent across-the-board pension increase from 1 January 2022 plus targeted minimum top-ups for the lowest pre-1995 pensions, and makes the new level the basis for subsequent indexation.