Health Ministry proposes raising social assistance and social pension to 600,000 VND per month from July 1, 2026

The Ministry of Health has proposed raising the social assistance standard and the social pension to 600,000 VND per month, an increase of 20%, with the expected implementation date of July 1, 2026. The proposal is aimed at addressing concerns that current levels are too low to ensure a minimum living standard and are not well aligned with poverty reduction, social insurance, or preferential policies for meritorious persons.

Current standard falls short of poverty lines

Under Decree No. 20/2021/ND-CP and related amendments, the social assistance standard remains at 500,000 VND per month. The Ministry of Health says this level does not adequately meet living needs and does not match the broader policy framework.

Specifically, the current 500,000 VND standard equals only 22.7% of the rural poverty line and 17.8% of the urban poverty line under the new regulation. The rural poverty line is 2,200,000 VND/month, while the urban poverty line is 2,800,000 VND/month.

Inflation pressure and CPI outlook

The proposal is also presented against the backdrop of rising consumer prices. The article cites that CPI increases in 2024–2026 are averaging over 3.5% per year, with a projection that prices will rise by nearly 12% over three years, particularly for food items. The Ministry of Health argues that maintaining the current social assistance and social pension levels would continue to erode beneficiaries’ living conditions.

Policy basis linked to base pay reform

The Ministry of Health notes that the Politburo has directed salary and allowance increases for civil servants, public employees, and armed forces following administrative restructuring. It also cites instructions to adjust social allowances and social pensions in line with the base pay increase from July 1, 2026.

According to the proposal, the Government is expected to temporarily raise the base salary by about 8% from July 1, 2026. This is expected to be linked to adjustments to pensions, allowances for people with meritorious service, and—particularly—the social assistance standard to safeguard living conditions for vulnerable groups.

Details of the proposed increase

On that basis, the Ministry of Health proposes that the Government consider and decide to raise the social assistance standard and social pension from 500,000 VND/month to 600,000 VND/month, effective July 1, 2026.

The Ministry says the 20% increase is structured as follows:

• 8% for the expected base pay rise
• 12% to offset CPI increases in 2024–2026

The Ministry describes the 12% component as essential to preserving the real value of the allowance against inflation.

Expected coverage and alignment with social policy

The Ministry of Health also states that the current 500,000 VND/month level is the lowest in the social security system. It argues that raising the standard to 600,000 VND/month would significantly improve alignment with living needs and poverty thresholds.

It estimates that a monthly 600,000 VND standard would raise the proportion of people meeting the poverty line to about 27.3% of the rural poverty line and 21.4% of the urban poverty line.

Draft decree provisions for local standards

The draft decree also provides that provincial-level People’s Committees must submit to the corresponding People’s Council the social assistance and pension standards applicable in their locality if those standards are higher than the decree’s minimum. It also requires local determination of other vulnerable groups not specified in the decree that will be entitled to benefits.