On Wednesday, Cuban Prime Minister Manuel Marrero Cruz revealed to the National Assembly of People's Power that pensioners currently receiving up to 4,000 pesos monthly will see an increase in their pensions starting in September. This partial measure, which aims to—though likely will not—ease the economic struggles of this vulnerable group, was announced during a live broadcast on Canal Caribe's YouTube channel.
This decision will affect 1,324,599 individuals, accounting for 79% of the country's pensioners. Of these, 82% earn up to 2,472 pesos and will see their pensions boosted by 1,528 pesos, effectively doubling the minimum pension currently collected by 438,572 retirees, which represents 33.1% of the total. The remaining 18% of beneficiaries will receive an increase sufficient to reach the 4,000 pesos monthly cap set for this phase.
Marrero admitted that this is merely a partial increase, as a comprehensive overhaul of the pension system is not feasible at this time. He justified the regime’s limitations by citing the financial constraints facing the nation. Nevertheless, he mentioned that various proposals are being explored to find alternative funding solutions for more sustainable improvements.
The measure will apply to retirees due to age, disability, and those receiving a unified pension due to a spouse's death. However, given the high inflation rate, it will not cover even the most basic needs of many pensioners. On the same day, Marrero acknowledged that "much remains to be done" while presenting the results of the "Government Program to Correct Distortions and Reinvigorate the Economy" to the National Assembly.
While this acknowledgment was framed in optimistic language, it highlights the erosion of the current economic model and the government's inability to reverse a dire situation faced daily by many Cubans: prolonged power outages, shortages, rampant inflation, and growing uncertainty about the future.
Additionally, the Prime Minister reported that, in just 46 days following the implementation of the telecom price hike, ETECSA has collected over 24.839 million U.S. dollars, averaging 540,000 dollars daily. Although he conceded that the manner in which the measure was enacted and its political-communication strategy caused public discontent, he stated that these concerns have been "addressed."
Pension Increase and Economic Changes in Cuba
Who will benefit from the pension increase in Cuba?
The pension increase will benefit 1,324,599 individuals, which is 79% of the pensioners in Cuba, focusing particularly on those earning up to 4,000 pesos monthly.
What challenges is the Cuban government facing in reforming the pension system?
The Cuban government faces significant financial constraints, making it challenging to conduct a comprehensive reform of the pension system at this time.
How has the telecom price hike impacted ETECSA's revenue?
Following the telecom price increase, ETECSA has generated over 24.839 million U.S. dollars in just 46 days, averaging 540,000 dollars daily.