One-time social security pension is an important policy aimed at supporting workers who choose to receive their contributions back in full. Starting from February 28, 2025, workers withdrawing their pensions will benefit from an inflation adjustment factor, helping to offset the loss of purchasing power over time.
What Is the Inflation Adjustment Factor?
The inflation adjustment factor, also known as the salary and income adjustment rate, is applied to calculate the one-time social security pension amount. This tool helps compensate for the devaluation of currency over the years, ensuring workers’ benefits.
The one-time social security pension amount depends on the duration of social security contributions and the average monthly salary or income. By including the inflation adjustment factor, the payout amount is usually higher than the initial amount.
Formula for calculating monthly salary contributions in 2025.
Who Will Receive the Inflation Adjustment Payment?
According to Circular No. 01/2025/TT-BLDTBXH issued on January 10, 2025, the inflation adjustment factor will be applied starting from February 28, 2025. This means:
- Before February 28, 2025: Cases where applications for one-time social security pension were processed without the inflation adjustment factor will have the difference paid out after the circular takes effect.
- From February 28, 2025 onwards: Workers applying for one-time social security pension will directly receive the inflation adjustment factor, eliminating the need for supplementary payments.
Workers withdrawing one-time social security pension will receive inflation adjustments from February 28, 2025.
Salary and Income Adjustment Rates for 2025
Circular No. 01/2025/TT-BLDTBXH specifies the salary and income adjustment rates for monthly social security contributions. Specifically:
For Compulsory Social Security Participants
- The adjustment rate increases from 1 to 5.63 times depending on the year of contribution. For example:
- Year 2015: Adjustment factor is 2.4 times.
- Year 2020: Adjustment factor is 1.3 times.
- Year 2024: Adjustment factor is 1 time.
Detailed salary adjustment rates for 2025.
For Voluntary Social Security Participants
- The adjustment rate increases from 1 to 2.21 times depending on the year of contribution.
Formula for calculating monthly income contributions in 2025.
Significance of the Inflation Adjustment Policy
The inflation adjustment policy not only ensures financial benefits for workers but also demonstrates the government’s commitment to preserving the real value of social security contributions. This is particularly important in the context of inflation and economic volatility.
Conclusion
Implementing the inflation adjustment factor from February 28, 2025, represents a significant step in enhancing workers’ benefits when withdrawing one-time social security pensions. To ensure they receive the correct and full benefits, workers should thoroughly understand the relevant regulations or contact the local social security office directly.
