The minimum wage in Cuba is important. Did you know that Cuba’s minimum wage is a quarter of that of Haiti? Yes, that’s right – Cuba’s minimum wage is 2100 pesos a month, less than half of what Haitians make. That’s insane! If you’re working for less than that, you need to move, or else you’re going to suffer! Read on to find out how you can make a decent income in Cuba.
Cuba’s minimum wage has been slashed by almost two thirds
In recent years, Cuba has experienced extreme inequality in incomes, with some people living in luxury with food delivered to their homes, VIP parties, and yoga classes. On the other hand, the majority of the population has lost access to average economic opportunities and jobs. The third group, which includes the elderly and pensioners, is finding it increasingly difficult to purchase basic items at stores. This will lead to more deteriorating economic conditions, which will exacerbate social inequality.
Moreover, the number of non-working citizens in Cuba is set to rise from 62 percent in 2011 to 67.7 percent by 2025. On the other hand, ninety percent of Cubans own their own homes. This high homeownership rate is the result of President Raul Castro’s economic reform agenda, which aims to maintain socialism while introducing market-based mechanisms to improve living conditions and encourage growth. For example, the government has introduced a high tariff on electricity consumption to reduce state spending and encourage energy saving. In Cuba, 95% of electricity is produced from fossil fuels, and only 48% is imported at high prices.
The government responded by conducting a major public information campaign. Government ministers appeared on television daily and addressed the concerns of the people. The campaign will last until the end of January 2021. But what will happen to the minimum wage in Cuba? There is no simple answer, and it will take time for the Cuban people to realize their full economic potential. But the Cuban government is committed to eliminating the problem in the near future.
It is a quarter of that in Haiti
As the minimum wage in Cuba is a quarter of that of Haiti, the protests against the current situation are increasing. On the 3rd of June, progressive students at the State University in Port-au-Prince began street demonstrations. They are calling for the release of detained students, compensation for those injured in the violence, and a minimum wage of 200 gourdes per day. Anything less would represent a major setback for progressive change in Haiti and a victory for the minority elements.
While Cuba’s minimum wage is nearly twice as high as that of Haiti, the amount that Haitians earn is much lower. In Haiti, a worker’s pay is determined in Haitian gourdes, and the monthly wage is equal to 4.33 times the weekly wage. A person in Haiti can earn as little as three dollars a day. Even though life is hard on three dollars, they’re less likely to go hungry. At least, they’ll have more money to send their children to school, where most schools in the country charge exorbitant fees.
The article also claims that the U.S. government conspired to deprive Haitians of a fair wage. This seems to be a ridiculous claim considering that the U.S. government could have forced Haiti to pay more if they’d insisted on higher wages for their workers. That would have resulted in a more prosperous Haiti, but the fact is that Haiti’s economy is still struggling. It’s estimated that only about 50,000 people are employed in textile and apparel manufacturing. The article implies that the minimum wage in Haiti is a quarter of that in Cuba.
The Cuban government’s statistics on unemployment are also disingenuous and outrageous and are rarely accurate. On April 24, 2019, Margarita Gonzalez claimed that Cubans have a 1.7% unemployment rate, which would constitute full employment. In contrast, the United States, Norway, and South Korea have three percent unemployment rates, and that’s still not bad! And the average salary in Cuba is a quarter of Haiti’s.
It has been slashed by almost two thirds
The Communist Party has resisted raising the minimum wage, claiming that it would undermine their political power. Further, it warns that a higher minimum wage would only lead to inflation and more hardship in an economy that is already suffering from an overly-large black market. While the increase in the minimum wage may mean better job security, the higher salaries will also exacerbate the situation for those whose wages are not guaranteed. The government has also committed to protecting these enterprises for a year.
The recent cuts to the minimum wage are not the first economic crisis for Cuba. The island nation has experienced decades of incompetence and extreme inequality. While a select group of citizens enjoys food deliveries, yoga classes, and VIP parties, the vast majority has no access to these basic necessities. The elderly and pensioners are particularly vulnerable, with many unable to access stores and essential services.
In the early 1870s, Cuba’s economy was closely linked to the United States, and the country’s tobacco industry was partly transplanted to the south of North America. This accelerated the dissolution of Cuba’s “sugar nobility” and the island’s economy was dominated by the U.S. sugar industry. By the 1840s, Cuba had 430,000 slaves, with 60 percent of its population black.
Raul Castro has repeatedly referred to the “socialist principle” in the context of the country’s monetary order and has emphasized the importance of eliminating the dual currency. His “socialist principle” was the central theme of his government’s 2011 Guidelines for Updating the Economic and Social Model. However, his policies have resulted in a severe reduction in the minimum wage in Cuba.
It is set at 2100 pesos per month
Starting January 1, the minimum wage in Cuba will increase from its current level of 400 pesos per month to 2,100 pesos per month. The new minimum wage will apply to state sector workers who earn between 1,910 and 2,100 pesos a month, depending on the number of hours they work per week. The top salary in Cuba is 9,510 pesos per month.
The basic basket of goods and services is now about the same as the average Cuban monthly salary. In January, 80 grams of bread cost just 5 cents. In contrast, the price of bread in the country was four cents. In June, President Miguel Diaz-Canel announced that the country would adjust its economy to reflect this increase in prices. In addition to increasing the minimum wage, basic services, notary fees, and taxes have also increased.
The Cuban government recently announced that it would begin to remove subsidies and gratuities. While it still maintains a socialist approach to labor rights, it has a policy of eliminating excess subsidies and gratuities. The minimum wage is meant to cover the cost of a reference basket, which is currently set at 1,528 pesos per month. However, the government’s economic measures are making salaries very low and limiting the incomes of many workers.
This is a fixed amount for a full-time employee to make. Workers earning more than two hundred pesos per month are required to pay personal income taxes. This tax rate is three or five percent, depending on the level of income a person earns. This tax rate will also increase for every tenth of a cent above nine thousand pesos per month.
It will increase to $9.40 a month
Cuba has just announced a new minimum wage increase that will nearly double the salaries of 1.7 million people. The increase will take effect on May 1 and will give those earning less than $4.20 a month a much-needed boost. The increase will help many low-income individuals, including single mothers, senior citizens, widows, and disabled people. Those living in poverty in Cuba will also see an increase in government assistance programs.