Pay reform, essential in Cuba's monetary ordering

Pay reform, essential in Cuba's monetary ordering
Fecha de publicación: 
14 October 2020
Imagen principal: 

The pay reform is one of the pillars of the monetary ordering to be implemented in Cuba as part of the new socioeconomic strategy under way.

By eliminating the monetary and exchange duality, as well as undue subsidies and gratuities, and transforming people's incomes, Cuba's economic situation will improve.

The explanation was made by Marino Murillo, head of the Permanent Commission for Implementation and Development of the Guidelines of the Communist Party of Cuba (PCC), who noted the need for monetary ordering to solve macroeconomic unbalances, favor incentives to production and improve competitiveness internationally. The official pointed out that after the unification of the two legal tender currencies in Cuba, there will be a devaluation of the Cuban peso (CUP) that will allow correcting the distortion in prices.

Inevitably, there will be an increase in wholesale and retail prices, so it is indispensable to implement a pay reform so that citizens can use goods and services.

With the increase in incomes, people must be more motivated to work, Murillo added.

He warned that in order to establish the minimum wage, the value of a basic basket, containing subsidized and not subsidized products, will be considered as a reference.

Cuba's great aspiration is that all salaried workers have better conditions than at present, said the official, who noted that social security will support the families whose incomes are under what is necessary to acquire what they need to live.

The salary has to back up the consumption of workers and their family, so it has to be a little bit higher than the basic basket, Murillo pointed out.

Regarding the possible inflation, he said that it is one of the dangers, although he noted that the State has created the conditions for prices not to increase above the plan.

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