Related videos:
The Council of Ministers of Cuba approved a mechanism to pay additional income to workers in the budgeted sector through the redistribution of "non-executions" of personnel spending (savings from the salary fund) in units where the salary budget has not been executed "due to objective reasons."
The measure, published in the Extraordinary Official Gazette No. 45 (August 11, 2025) as Agreement 10199/2025, defines this money as “additional payment and salary for all legal purposes”, although it clarifies that it does not constitute a permanent payment system.
The Agreement authorizes the redistribution of the unspent salary fund in budgeted units as an incentive for workforce stability, in light of the “sustained increase” in labor turnover in that sector.
The regulation states that the authority to approve the “general level of salaries in the country” belongs to the Council of Ministers (according to Article 113 of the Labor Code) and bases its decision on its constitutional competence.
The additional payment applies to workers of all occupational categories in the budgeted sector, including units with special treatment.
However, the Agreement itself introduces exceptions and conditions that limit who can receive it.
Where the money comes from: "non-executions" of the salary fund
The Agreement states that redistribution only occurs when the non-execution of the fund is objective and can be guaranteed within the assigned salary expenditure plan for the fiscal year. The non-execution, according to the text, may be due to:
- existence of workers with subsidies,
- maternity benefits,
- unpaid leave, or other situations where salary is not paid,
- or non-completion of the approved template.
The Agreement emphasizes two key ideas. The payment is regarded as additional and salary for all legal purposes, but does not constitute a payment system.
The frequency can be one-time or for a specified period, but it cannot be permanent or widespread.
Each budgeted unit must approve an internal regulation to implement the redistribution, and the document requires:
- approval by the unit head as budget administrator, subject to agreement from the Management Board;
- participation of the trade union in its development;
- analysis of the content in the General Assembly of Affiliates and Workers;
- incorporation into the Collective Labor Agreement once approved.
The regulations must include at a minimum: source of funding (non-executions of the salary fund); frequency (not permanent or mass); granting procedure (with criteria such as high performance, differentiated recognition for highly qualified individuals, positions of greater responsibility, competency-based approach, and individual distribution mechanism); authorities certifying savings and compliance with requirements, and control system.
Who decides how much and how it is distributed?
The Agreement states that the total amount to be redistributed and the amount for each worker are approved by the Management Council, in mutual agreement with the union, and are reported to the General Assembly.
The agreement of the Board of Directors must establish the criteria for granting, specify the amount to be redistributed, the individual amount, and the period to which the compensation corresponds.
Excluded (excepted) from the application:
- organs and agencies of the Central State Administration and national entities with differentiated salary increase treatments;
- healthcare units and educational institutions whose healthcare professionals and teaching staff are already receiving benefits of maximum effort and educational workload.
To whom it may concern:
- workers who did not receive those benefits, or
- those who only received the additional monthly payment for years of service rendered.
The Agreement assigns tasks with deadlines. Within 30 days of its entry into force: heads of agencies, governors, mayors, and OSDE with budgeted units must analyze labor performance and the financial assessment of salary expenditure to determine which entities can redistribute funds.
They must also approve general guidelines for implementing the payment in their system within 30 days (referential for internal regulations).
They must evaluate the implementation quarterly for a year and send a report on results and impacts to the Ministry of Finance and Prices as part of the notes to the financial statements.
The ministers of the FAR and MININT have up to 30 days from the publication to adjust their implementation in budgeted activities that do not have differentiated salary increases.
Filed under: