Salaries and pensions in Cuba will receive a substantial increase in all labor spheres starting next January 1, but the impact of the measure for citizens will depend on the inflation levels that are generated during the monetary unification process.
The Cuban government set the minimum wage at 2,100 Cuban pesos (CUP), about $87 dollars at the expected exchange rate of 24x1, while pensions will range between 1,528 ($64) and 1,733 CUP ($72), according to aresolution of the Ministry of Labor and Social Security (MTSS) published in theofficial Gazette.
But the fundamental question with which this risky, but inevitable task of the Cuban government begins, is whether the salary increase corresponds to an unproductive economic reality dependent on the external market for the supply of basic products, which could trigger a rampant devaluation of the CUP. .
For now, both the regime's leaders and economists recognize that an inflationary process is inevitable and that the CUP will devalue rapidly during the first stage of the exchange rate unification process, while in the informal market the dollar exchange rate already exceeds 30x1.
"The exchange rate starts out outdated and adjustments will have to be made in the immediate future," said Cuban economist Pavel Vidal, professor at the Javeriana University of Cali, Colombia.
After this Saturday's Round Table on the subject, economist Pedro Monreal observed that 48.6% of state workers are concentrated in the seven groups with salaries lower than the established scale, between 2,100 and 2,810 CUP per month, and he predicted that "the anti-inflationary 'design' is unlikely to be effective in the absence of an increase in supply."
The resolutions to establish the new salaries comprise 32 groups divided by scales and amounts of working hours per week, according to the work and rest regime.
The salary reform and adjustments in the pension system will be effective from the second half of DecemberAs announced by the head of the implementation of the economic guidelines,Marino Murillo Jorge.
This Friday, Murillo Jorge announced on the television programRound table that sinceOn December 17, the payment of pensions to retirees and beneficiaries of social assistance will begin, andStarting December 23, a salary advance will be given to all workers, so that they can face the price increases in services and products, scheduled for January 1.
The national scale established in the official decrees goes from the lowest salaries in the area of services (groups I to VI), with monthly income between 2100 and 2415 CUP, to the highest compensations of the groups of administrative staff, governors and heads of municipal assemblies (groups XVII to XXXII), which range between 4610 and 9510 CUP.
So on the salary scaleSalaries higher than those received by doctors, dentists, scientists, university professors and teachers are established for leaders.. Although the resolutions set a limit of 9,510 CUP for group XXXII, only the amounts up to the governor level are specified, butsalaries of top government leaders are not established.
The governor of Havana will receive a monthly salary of 9,010 CUP and his vice-governor, 8,510 CUP, while the governors and vice-governors of provinces will receive 8,510 CUP and 8,010 CP, respectively, and the heads of secretariats, 7,660 CUP and 7,310 CUP.
Meanwhile, a doctor with two specialties or a stomatologist specializing in maxillofacial surgery will earn 5,810 CUP; a hospital director between 7,660 and 6,610 CUP, depending on the national or municipal hierarchy of the institution, and a head of medical services, between 6,960 and 6,060 CUP.
Doctors, stomatologists and other professionals who teach without occupying teaching positions may increase their additional monthly payments depending on the category they hold, between 550 CUP for a full professor and 220 CUP for an instructor.
For university teaching professors, the salary will be 5,560 CUP for full professors, 5,310 CUP for assistants, 5,060 CUP for assistants and 4,810 for instructors.
But neither the specialist doctors and stomatologists, nor the hospital directors, nor the tenured academics will be able to equate to what the Secretary of the Turquino Plan Provincial Commission will earn: 6,960 CUP per month, which will be the same salary that ambassadors and heads of missions will have. diplomatic.
Journalists will be at the maximum level of 5060 CUP, the same monthly salary stipulated for tamers, tightrope walkers, jugglers, acrobats and circus magicians. The directors of press organizations will receive up to 6,610 CUP and the general director of the National Television News edition, 6,060 CUP, about 250 CUP more than what their colleagues managing evening news programs and informative magazines will receive.
For teachers, educational psychologists, educational work instructors and speech therapists in secondary education, the maximum salary will also be 5060 CUP, and librarians and teaching assistants will earn between 4210/3610 CUP.
The regulations provide for additional monthly payments for abnormal working conditions (CLA), working night and mixed shifts, or having the category of Master or the equivalent specialty recognized by the Ministry of Higher Education (440 CUP) and the scientific degree of Doctor (825 CUP), as long as the professionals perform a position with university-level requirements.
For professions that receive international qualifications there will also be compensation of 685 CUP.
In the case of athletes, who are already considered a professional category, income of 5,590 CUP will be established for Olympic medalists, 4,845 CUP for medalists in world tournaments, 4,475 CUP for Pan American champions and 4,095 CUP for Central American champions. The members of the national baseball preselection and the participants of the National Baseball Series (SNB) will receive 3,725 CUP and the members of the SNB national preselection reserve, 2,400 CUP.
The government will impose a social security contribution rate of 5% of workers' income, which will function as pre-financing for retirement, explained Murillo Jorge.
pension system
Regarding pensions, the minimum figure of 1,528 CUP for age or disability coincides with the value established for the basic basket of goods and services, which was taken as a fundamental reference.
In his television intervention on Friday, Murillo Jorge said that social security pensions benefit 1,671,000 retirees, who there is "no right to leave without protection."
He explained that all people who now have a pension of up to 499 CUP will receive between 1,578 and 1,733 CUP. Starting at 501 CUP, they will earn the current pension plus the cost of the basket (1528 CUP).
The government plans to benefit people with lower incomes with food subsidies and other services. When announcing the date of monetary unification, President Miguel Díaz-Canel said that the conditions have been created to ensure that "no one will be left helpless" and that in the country "shock therapies will never be used against the people."
"The transformations that we must undertake in the economic and social model will be carried out by previously forging consensus in favor of the unity of the nation," Díaz-Canel asserted in a phrase that implicitly implies the volatility of the announced process.
The pensions will rise 5.45 times more than the current amount of the social security regime in the country, and take into account five income levels of the beneficiaries currently, between 160/280 CUP and 500 CUP, according to Resolution 28 of the MTSS.
The decree establishes that pensions greater than 501 CUP will receive an increase of 1,528 pesos each. For pensioners who are entitled to more than one social security pension, the increase is made on the amount of the unified pension.
The increase in death pensions granted prior to January 1 will be applied to the amount of the deceased, and the beneficiary will be granted the share that belongs to him, in accordance with the Social Security Law, in force since 2008. The procedure It will be the same for new pensions granted due to death.
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