The Cuban Prime Minister Manuel Marrero celebrated on his official X account the "warm reception" that the increase in pensions has supposedly received among the population.
According to him, even those who receive less than 1,528 pesos will be included in the benefit, which will amount to that same figure.
No offered additional details regarding the scope of the measure, but indicated that the Minister of Finance and Prices, Vladimir Regueiro Ale, will explain it soon.
The official enthusiasm stands in stark contrast to the sentiments of the citizens. Comments on social media range from indignation to sarcasm.
“An egg carton is all that an old man can buy with that, Manolo,” wrote a user. Another was more direct: “We've been without power for 24 hours, and the people are so cheerful I can’t even begin to tell you. 1,528 pesos, a liter of oil, and two pounds of bread.”
For his part, the Cuban economist Mauricio de Miranda was emphatic in his analysis: “the increase in pensions is imperative, as is the rise in salaries, but if this is not accompanied by an increase in domestic production and/or export revenues,” the extra money will dissipate in inflation.
In a shared analysis on his Facebook profile, following the announcement of the measure, Miranda argued that, as has happened before, if more money is issued without income to back it up, it only exacerbates the fiscal deficit.
He also criticized the disproportionate spending on hotels and tourism—over 36,843 million pesos in 2024—while essential sectors like health and education are being neglected.
According to the expert and Full Professor at the Pontifical Javeriana University in Cali, Colombia, the real problem is structural: “…with an economy collapsed and in clear decline like that of Cuba, shifting resources from one place to another would merely be patching one hole by opening another (as has traditionally been the case), because it is abundantly clear that the level of investments currently being made in Cuba is insufficient to even place the country on a path of economic growth,” he stated.
This is compounded by the historical injustice of the pension system in Cuba, which has left professionals with decades of service receiving meager incomes, barely adjusted to the minimum.
According to the economist, the measure will not truly improve the lives of retirees; rather, it is likely to generate more inflation, shortages, and a black market. "Haven't we already seen this movie?" he asked, referring to previous episodes such as the failed "monetary reform."
Meanwhile, Cubans continue to do the math and conclude that the supposed relief amounts to “a bottle of oil and five pounds of rice in the informal market,” as one user from Holguín stated. Others simply summarize it this way: “Let no one be left behind; let everyone follow the same misery.”
Marrero announced on Wednesday, July 16, to the National Assembly of People's Power that starting in September, a pension increase for retirees who currently receive up to 4,000 pesos per month will be implemented.
However, this adjustment, while welcomed by some, does not resolve the precariousness that thousands of retirees on the island face, where the cost of living remains high and access to essential goods is increasingly restricted.
In Cuba, a simple carton of eggs can exceed 3,000 pesos, while most essential products such as oil, detergent, chicken, or powdered milk are only sold in convertible currency, a form of currency that the State neither pays nor sells to the population through salaries or pensions. This situation forces millions of citizens to rely on remittances from abroad.
In 2024, Cubans reported the exorbitant cost of a “file” of hen laying chicks: 5,000 pesos in the black market, a price that a worker earning a low salary or a retiree with their minimal pension cannot afford.
The government itself acknowledged on Wednesday that more than 310,000 residents of the island are currently in a state of poverty or social vulnerability, amidst a deep economic crisis and an intense public controversy over recent official statements denying the existence of poverty on the island.
“We recognize that those 182,000 families and 310,000 individuals do not encompass all people in vulnerable situations in the country; the economic situation has led to an increase in the people associated with economic vulnerability,” admitted the prime minister.
In this context, the head of government promised that the government will "study" an increase in the minimum wage, although he also stated that this would only happen "as we continue to boost the economy," a claim that wavers, as it was reported the day before that the Cuban economy continues to contract, according to official data presented to the National Assembly itself.
Frequently Asked Questions about Pension Increases in Cuba
What does the recent increase in pensions in Cuba entail?
The pension increase in Cuba consists of a raise for retirees who currently receive up to 4,000 pesos monthly. According to Prime Minister Manuel Marrero, those receiving the minimum pension of 1,528 pesos will see their pension doubled to 3,056 pesos. Individuals with incomes between 1,528 and 2,472 pesos will receive an increase of 1,528 pesos.
How has the Cuban population reacted to this increase in pensions?
The reaction of the Cuban population has been largely negative. Many citizens have expressed that the increase is not enough to cope with the high cost of living on the island. On social media, users have stated that the increase only suffices to purchase a few basic products, such as a dozen eggs or a liter of oil, due to rampant inflation and the scarcity of essential goods.
What economic impact could an increase in pensions have in Cuba?
The increase in pensions could lead to more inflation and shortages. Economist Mauricio de Miranda warns that, without an increase in domestic production or export revenues, the extra money could dissipate in inflation, worsening the country's fiscal deficit.
What are the criticisms of the management of the pension system in Cuba?
Critics focus on the inadequacy of the increase to meet basic needs and the historical injustice of the system. The pension system in Cuba has left many professionals with decades of service with incomes that barely cover the essentials. The economic situation and the lack of structural reforms worsen the living conditions of retirees.
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