Low salaries in Cuba challenge state workers' lives

In Cuba, state workers, who make up two-thirds of the labor force, face enormous challenges to survive on salaries equivalent to 10 or 15 dollars a month, as inflation drives up food prices relentlessly. Many leave public jobs for private or informal options offering better pay, as shown by a former nurse in Camagüey. The situation worsens due to stagnant wages and the recent oil blockade ordered by President Donald Trump.

State salaries in Cuba average 6,685 pesos (13 dollars) in the budgeted sector and 7,590 pesos in state companies for 2025, with a minimum wage of 2,100 pesos (4 dollars) since 2021. According to the National Office of Statistics and Information (ONEI), wages rose only 2.8% in 2025, compared to an 18% increase in the basic food basket cost in 2024, and presumably higher figures for 2025. For two people, essential foods cost 24,351 pesos per month in 2024, nearly four times the average state salary.

In Camagüey, Yunaika, a former pediatric nurse, quit her job in 2024 to sell clothing sent from Mexico, earning up to 7,000 pesos (14 dollars) on a good day instead of the same over a full month. 'Sometimes I owed so much that I didn’t even notice when I got paid,' she explained. Many of her colleagues chose private jobs or emigrated, as state employment fails to cover basic needs.

Parents like Yunaika contribute 200-300 pesos (0.50 dollars) monthly for school repairs, such as locks and lights, since the government stopped covering these costs. A caretaker earned 2,900 pesos (under 6 dollars) and quit, and there is no janitor due to low pay. Teachers earn over 5,000 pesos (10 dollars), and some parents give gifts to retain them.

In the private sector, wages for low-skill jobs rarely exceed 1,500 pesos (3 dollars) for 12-hour or longer shifts, and the new Labor Code allows up to 13 hours daily. The July 2025 National Employment Survey shows only 49.1% of working-age Cubans are employed, 10 points below the Latin American average, with an aging workforce averaging 44 years old.

Eduardo, a crane operator at a cement factory in Nuevitas, earned 30,000-35,000 pesos monthly until the oil blockade halted the project. He missed pre-pandemic worker benefits like food packages and housing. 'In a country like Cuba, with constant shortages and rising prices, it’s better to have the product than the money,' he lamented. Remittances of 200 dollars equal over 100,000 pesos, allowing life without formal work, and internet access has boosted digital jobs, especially among women.

Relaterte artikler

President Gustavo Petro signs decree for Colombia's 23% minimum wage hike to 2 million pesos in 2026, as workers celebrate and businesses express concerns.
Bilde generert av AI

Colombia Decrees 23% Minimum Wage Increase for 2026 After Intense Negotiations

Rapportert av AI Bilde generert av AI

Following stalled talks where unions demanded a 16% rise and businesses warned of economic risks, President Gustavo Petro decreed on December 30 a 23% increase in Colombia's 2026 minimum wage, to 1,750,905 pesos plus 24.5% higher transportation aid of 249,095 pesos, totaling 2 million pesos monthly. The hike benefits 2.4 million formal workers and aims for an ILO 'vital wage,' but prompts debate on inflation, SME impacts, and competitiveness.

In Havana hotels like the Sevilla, prices in Cuban pesos and dollars reflect inconsistent exchange rates ranging from 75 to 286 per dollar, ignoring the official rate of 120. This practice creates confusion in restaurants where only card payments are accepted. Meanwhile, tourism on the island has plummeted, with just 1.4 million visitors through October.

Rapportert av AI

The Cuban peso depreciated to 500 units per US dollar in the informal market on Wednesday, marking a historic low according to the El Toque outlet. This 15 percent drop so far this year worsens the island's economic crisis, driven by external pressures from the United States. The depreciation has deepened since the failed 2021 monetary reform.

Mexico's government confirmed a 13% increase in the minimum wage for 2026, benefiting millions of workers. The raise will take effect on January 1 and aims to boost purchasing power without causing inflation.

Rapportert av AI

Residents of Camagüey are still waiting for the four pounds of rice promised at the beginning of December, part of subsidized rationed products. The Cuban government struggles with a foreign currency shortage that prevents fulfilling the monthly quota of seven pounds per person, while promoting controversial ideas to reduce consumption and tighten controls on farmers. Experts and farmers argue that investing in domestic production would be more efficient than costly imports.

The Council of State provisionally suspended Decree 1469 of 2025, which set the 2026 minimum wage at $1,750,905 with a 23.7% increase. The government must issue a new transitory decree within eight days, while the original decree remains in effect until published. Various sectors reacted, from guild support to the executive's defense.

Rapportert av AI

The Colombian government raised the minimum wage by 23% for 2026, exceeding technical parameters of inflation and productivity. Defended as a 'vital wage', the measure has triggered an inflation spike in January and an estimated additional fiscal cost of $3.8 trillion. Experts warn of effects on employment and public finances.

 

 

 

Dette nettstedet bruker informasjonskapsler

Vi bruker informasjonskapsler for analyse for å forbedre nettstedet vårt. Les vår personvernerklæring for mer informasjon.
Avvis