The average monthly wage in Cuba, officially set at 5,839 Cuban pesos (CUP), has seen a depreciation of 9.25% in its dollar equivalent since April, underscoring the direct impact of the ongoing decline of the Cuban peso in the informal market. Back in April 2025, as reported by the National Office of Statistics and Information (ONEI), this income was equivalent to $16.08 USD at the then unofficial exchange rate (1 USD = 363 CUP). Currently, with the currency trading at 400 CUP on the streets, the same salary barely reaches $14.60 USD, translating into a purchasing power loss of nearly a dollar and a half in just four months.
Exchange Rates Today
According to figures released by the platform elTOQUE, on Saturday, August 16, the exchange rate in the informal market remains stable at historic highs:
- Saturday, August 16, 2025 - 06:00
- US Dollar (USD) to Cuban pesos (CUP): 400 CUP
- Euro (EUR) to Cuban pesos (CUP): 450 CUP
- Freely Convertible Currency (MLC) to Cuban pesos (CUP): 200 CUP
The US dollar remains the main reference, while the euro is trading even higher at 450 CUP, and the Freely Convertible Currency (MLC) remains at 200 CUP.
Real Incomes Behind Nominal Wages
Though the nominal wage figures have not changed since they were reported in April, the economic reality is that these same earnings now allow access to fewer goods and services. The depreciation of the Cuban peso against the dollar and the euro directly erodes workers' purchasing power.
Today, a median wage of 5,839 CUP is equivalent to:
- $14.60 USD
- €12.98 EUR
In Havana, the province with the highest income (6,449 CUP), this amount equals $16.12 USD, while in Santiago de Cuba, where the lowest wage is reported (5,123 CUP), it barely reaches $12.81 USD.
A Silent Loss
The 9.25% reduction in the average wage's value over just four months highlights the rapid pace at which the Cuban peso continues to lose ground against foreign currencies. In practical terms, this means that an average worker today can purchase 9% fewer imported products or goods in the dollarized domestic market than in April.
Meanwhile, the Cuban government remains silent on the promised "transformations" in the official exchange market announced by Prime Minister Manuel Marrero Cruz for this semester, which are yet to materialize. Amid inflation and shortages, families increasingly rely on remittances sent by emigrants, which have become the main lifeline for millions of Cubans trapped in a perpetually depreciating economy.
Cuba's Position on the Global Stage: Lowest Wages
The depreciation of the Cuban peso today places the island's average wage among the lowest in the world in terms of its dollar equivalent. According to the specialized portal Paylab, countries like Ethiopia ($63.6 USD), the Republic of Congo ($96.7 USD), and Suriname ($167.6 USD) top the list of the world's lowest average monthly incomes. They are followed by other nations in Africa and Asia, such as Nigeria ($222.3 USD), Gambia ($222.5 USD), and Bangladesh ($222.8 USD).
In this context, the average wage in Cuba—5,839 CUP—today equates to just $14.6 USD monthly with the informal exchange rate (1 USD = 400 CUP), a figure well below even the country with the lowest reported income globally, which is Ethiopia with over $60 USD.
Regional Comparisons
The situation becomes even more striking when observing countries in the Caribbean and Latin American region. In Haiti, traditionally considered one of the poorest countries in the hemisphere, the average salary in the formal sector ranges between $150 and $200 USD monthly, according to TimeCamp and the World Bank. In Venezuela, another nation marked by crisis, incomes fluctuate between $110 and $230 USD monthly, depending on the sector (public or private), according to figures from the Venezuelan Finance Observatory and consultancies like Ecoanalítica.
This means that an average Cuban worker earns 10 to 15 times less in dollars than a Haitian or Venezuelan.
An Exceptional Case
Far from being grouped with the world's poorest countries in terms of salary—where average incomes exceed at least $60 USD monthly—Cuba constitutes an exceptionally critical case: a wage that in practice equals just over $14, despite the island not appearing in global statistics due to official manipulation of its indicators. The international and regional comparison shows that the collapse of the Cuban peso in the informal market has shattered the real incomes of the population, placing them in a unique category of precariousness that even Haiti or Venezuela, countries historically referenced for their structural crises, do not experience at this level.
Understanding Cuba's Economic Challenges
What is causing the depreciation of the Cuban peso?
The depreciation of the Cuban peso is largely due to economic mismanagement by the government, the ongoing financial crisis, and a lack of foreign exchange reserves. The informal market's high demand for stable currencies like the dollar and euro further weakens the peso.
How does the depreciation affect Cuban workers?
Cuban workers face reduced purchasing power as their incomes, when converted to foreign currencies, decrease in value. This limits their ability to buy imported goods or participate in the dollarized domestic market.
Why are remittances crucial for Cuban families?
Remittances are vital because they provide a stable income source in foreign currency, which can be used to purchase goods and services that are otherwise unaffordable due to the depreciating peso and high inflation.