When Miguel Díaz-Canel justified the recent hike in wages and pensions, he claimed it was evidence of his government's economic reforms aimed at supporting those in the most difficult situations and the most vulnerable segments of the population.
Nevertheless, the Official Gazette Extraordinary No. 41, which outlines the new salary scales for the budgeted sector, paints a broader picture.
The resolution from the Ministry of Labor and Social Security doesn't limit the pay raise to only low-income workers. Instead, it updates the salaries for all 32 occupational groups within the budgeted sector, ranging from Group I, the minimum wage group, to Group XXXII, where the highest salaries are found.
The monthly minimum wage rises from 2,100 to 3,210 Cuban pesos, an increase of about 53%. This percentage is applied across virtually the entire wage pyramid.
A worker in Group I will now earn 3,210 pesos; a manager in Group XXII will receive 8,880 pesos; and those in Group XXXII will reach 14,535 pesos per month.
The policy also benefits technicians, specialists, administrative staff, operators, service personnel, and 'cadres,' with no variation in the percentage increase.
A Contradiction in Official Rhetoric
The extensive nature of this measure raises an unavoidable question.
If the wage increase was touted as a policy to safeguard those in the greatest vulnerability, why does it also extend to the entire state's salary structure, including management roles and the highest income categories within the budgeted sector?
The Gazette makes no income-based distinctions nor limits the raise to the lowest wages. The update applies to all groups outlined in the salary scale.
This doesn't mean everyone receives the same absolute increase. Those in higher groups get larger increases in pesos because they start with higher salaries, even though the percentage is nearly identical across the scale.
'Cadres' Included Among Beneficiaries
One notable aspect is the inclusion of 'cadres,' an occupational category placed between groups XVII and XXII by the regulation itself.
With the new scale, their salaries will now range from 7,045 to 8,880 pesos monthly, compared to the previous range of 4,610 to 5,810 pesos.
The inclusion of 'cadres' has sparked debate, particularly because they are the leadership structure responsible for running state organizations, institutions, and companies and implementing the government's and the Communist Party of Cuba's directives.
For years, Díaz-Canel himself has publicly called on cadres for greater sensitivity, less bureaucracy, more ethics, and more efficient management, while the government has acknowledged issues of corruption, administrative stagnation, and a decline in political work at various state levels.
An Increasingly Scrutinized Structure
This decision comes amid growing dissatisfaction with the regime's political structures.
In recent years, PCC leaders have admitted challenges in recruiting new members, the existence of hundreds of workplaces without party nuclei, and the reluctance of many young people to join the Union of Young Communists and later the Party.
Simultaneously, much of the public discontent expressed on social media and in independent media is directed at state bureaucracy and leadership structures, seen by many Cubans as disconnected from everyday problems and overly focused on political and ideological control.
An Open Question
The Official Gazette leaves no doubt about the scope of the increase: all workers in the budgeted sector will receive a salary update.
The question arises when comparing this fact to the political rhetoric used to justify the measure.
If the increase demonstrates, as Díaz-Canel claimed, the regime's intention to protect those in the most challenging situations, the design of the new wage scale leaves a hard-to-ignore conclusion: the government-announced protection also extends to the entire state labor structure, including its 'cadres,' executives, and the best-paid groups within the budgeted sector.
In a country where the minimum wage represents only a few dollars on the informal exchange and where the cost of basic goods far exceeds the purchasing power of millions of families, the debate no longer centers solely on the amount of the increase but on the criteria used to define who are, in reality, the "most vulnerable."
Understanding Cuba's New Wage Policy
Why did the Cuban government increase wages across all occupational groups?
The Cuban government increased wages for all occupational groups as part of a broader update to the salary structure, not limiting the raise to low-income workers, despite initial claims that it was meant to protect the most vulnerable.
Who benefits from the new salary scale in Cuba?
All workers in the budgeted sector, including technicians, specialists, administrative staff, operators, service personnel, and 'cadres,' benefit from the new salary scale.