The Cuban government has announced with much fanfare that the average monthly salary in the country has climbed to 6,649 pesos during the first half of 2025, marking a 16.4% increase compared to the previous year. This figure, released by the National Office of Statistics and Information (ONEI) and echoed by Cubadebate, is being touted as a positive indicator of the official economic policy. However, this increase offers little relief to the population, as it does not address the severe inflation crisis and the ongoing devaluation of the Cuban peso.
Nominal Gains, Real Losses
According to the official report, the business sector experienced the highest growth, with salaries increasing by 24.9%, reaching 7,331.8 pesos. In contrast, the budgeted sector, which includes essential services like health, education, and culture, saw a modest rise of only 6.8%, bringing salaries to 5,922.6 pesos. Havana led the provinces with 7,660 pesos, followed by Artemisa (6,820.1) and Holguín (6,640.9). Meanwhile, Guantánamo, Isla de la Juventud, and Granma recorded the lowest salaries, all under 6,000 pesos.
The most lucrative economic activities were in electricity, gas, and water supply (12,362.8 pesos), construction (11,255.9 pesos), and business services (9,077.8 pesos). On the other hand, commerce (4,531.4 pesos), community services (4,545.3 pesos), and culture and sports (5,153.5 pesos) were the least paid sectors. Despite these figures, the reality remains stark: according to the informal market rate published by ElToque, the dollar stands at 410 CUP, making the new average salary equivalent to just 16.22 dollars per month.
Public Outcry: "Stop Inflating Numbers"
In June, the ONEI reported a rise in the average monthly salary to 6,506.5 pesos, equivalent to only 17 dollars at the prevailing informal exchange rate. The announcement by Cubadebate on Facebook was met with criticism. A doctor remarked, "It’s not the salary increase that determines improvement, it’s purchasing power. Today that salary is minimal." A self-employed worker was more direct: "Nothing is resolved. They offer salaries in a worthless currency, while food, hygiene products, medicines, and even electricity are unaffordable. It’s time to think about the people's quality of life, not just mask the numbers."
Other comments highlighted the disconnect between official rhetoric and reality: "Even earning three times as much, we can't make ends meet in our country," wrote an economist. A Havana resident added, "Make a graph of those salaries and compare it to the street dollar; see what a worker can buy in an MLC store." An IT worker summed up the general sentiment: "An average salary of 6,000 or 7,000 pesos doesn't cover even 20% of basic needs. We need at least 30,000 to survive, and much more to live with dignity."
The Illusion of a Salary Increase
Despite the purported salary growth, purchasing power continues to decline. Vice President Salvador Valdés Mesa himself acknowledged in February that "you can't live on a salary of 6,000 pesos." And he wasn't exaggerating. Today, a Cuban needs between 30,000 and 60,000 pesos a month for minimal survival, according to independent economists.
In a country where most basic goods—from milk to oil or medicines—are sold in dollars or MLC, a salary in pesos is practically worthless. The state market offers virtually nothing, and private SMEs adjust their prices based on the informal dollar rate, leaving the Cuban peso as a nearly valueless currency.
Ultimately, the official announcement of the salary increase doesn't provide respite for Cubans but rather serves as another attempt to mask a structural issue with numbers. Salaries rise nominally, but inflation, dollarization, and scarcity devour any gains. While the government boasts of increases, the average Cuban remains trapped in a fragmented economy, with a devalued currency and an unreachable basket of basic goods. The 6,649 pesos salary, which seems like progress on paper, is, in reality, just an illusion that doesn't cover even the most basic necessities: not even a week's worth of food or the hope for a dignified life.
Understanding the Cuban Salary Situation
How does the current average salary in Cuba compare to the cost of living?
The current average salary in Cuba, approximately 6,649 pesos, is insufficient to cover the basic cost of living. Independent economists estimate a minimum of 30,000 to 60,000 pesos per month is needed for basic survival.
Why is the Cuban peso losing value?
The Cuban peso is losing value due to significant inflation, limited state market offerings, and a growing dollarization of the economy, where many goods are priced in dollars or MLC (freely convertible currency).
What sectors in Cuba are receiving the highest salaries?
Sectors such as electricity, gas, and water supply, construction, and business services are currently receiving the highest salaries in Cuba, with figures reaching up to 12,362.8 pesos.