Cuba's Prime Minister, Manuel Marrero Cruz, announced this Wednesday before the National Assembly of People's Power that starting in September, a pension increase will be implemented for retirees currently receiving up to 4,000 pesos per month. This measure, which is likely to achieve only partial relief, aims to ease the difficult economic situation faced by this vulnerable sector.
The decision, announced by Marrero in a live broadcast on the YouTube channel of Canal Caribe, will benefit 1,324,599 people, which represents 79% of retirees in the country.
Eighty-two percent of them, that is, those who earn up to 2,472 pesos, will receive an increase of 1,528 pesos, which will effectively double the minimum pension currently received by 438,572 retirees, representing 33.1% of the total.
The other 18% of beneficiaries will see their pension increased as necessary to reach 4,000 pesos per month, which is the amount set as a limit for this stage.
Marrero acknowledged that this is a partial increase, as it is not currently possible to carry out a comprehensive reform of the pension system, and he justified the regime's inability by pointing to the financial limitations the country is facing.
Nonetheless, he pointed out that various proposals have been developed aimed at seeking funding alternatives to advance towards more sustainable solutions.
The measure will include retired individuals due to age, disability, as well as those receiving a unified pension due to the death of a spouse. However, in practice, given the high level of inflation, it will not cover even the most basic needs of retirees.
Also this Wednesday, Marrero acknowledged that “there is still much to be done” while presenting to the National Assembly of People's Power the results of the so-called “Government Program to correct distortions and reinvigorate the economy.”
The acknowledgment, although masked by a triumphant rhetoric, reveals the weariness of the current economic model and the government's inability to reverse a situation that many Cubans experience with daily distress: prolonged blackouts, shortages, unchecked inflation, and an increasing uncertainty about the future.
Similarly, the prime minister reported that in just 46 days, following the implementation of the rate hike in telecommunications services, ETECSA has raised more than 24 million 839 thousand US dollars, which amounts to an average of 540 thousand dollars daily.
Although he acknowledged that the way the measure was implemented and its political-communication strategy provoked discontent among the population, he also stated that these have been “addressed”.
Frequently Asked Questions about the Increase in Pensions in Cuba
What does the increase in pensions announced by the Cuban government consist of?
The increase in pensions announced by the Cuban government will benefit retirees currently receiving up to 4,000 pesos monthly. 82% of beneficiaries, who receive up to 2,472 pesos, will see an increase of 1,528 pesos, thus doubling the minimum pension. The remaining 18% of beneficiaries will see an increase to reach 4,000 pesos monthly.
Why can't the Cuban government implement a comprehensive pension system reform?
The Prime Minister Manuel Marrero Cruz acknowledged that the announced increase is partial due to financial constraints. It is not currently possible to implement a comprehensive reform of the pension system in Cuba. The government has been working on proposals to explore financing options and make progress towards more sustainable solutions.
How does inflation affect retired Cubans?
Inflation in Cuba has been a crucial factor affecting retirees, who are facing a critical economic situation due to rising prices. Inflation exceeds 30%, which significantly reduces the purchasing power of pensions. This has led many retirees to be unable to cover even a basic food basket.
What measures has the Cuban government taken to control inflation?
The Cuban government has been criticized for its lack of effective solutions to control inflation. During a meeting, Prime Minister Manuel Marrero Cruz reprimanded officials from the Ministry of Finance for failing to manage the rising prices and called for a review of the financial control mechanisms. However, so far, no concrete measures have been presented that have succeeded in curbing inflation on the island.
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