The partial increase in pensions for retired workers began this August 20, a measure announced by Manuel Marrero Cruz, member of the Party's Political Bureau and Prime Minister, while analyzing the impact and compliance of the Government Program during the Fifth Ordinary Session of Parliament, in the Tenth Legislature, which met this July.

At that time, the Head of Government specified that starting in September—payments will begin in August—pensions will increase for 1,324,599 people.

Various news outlets delved into the topic to explain the scope of the measure and its gradual nature.

In this regard, Benito Rey González, General Director of Social Security at the Ministry of Labor and Social Security, explained that Resolution 14, published in the 71st regular edition of the 2025 Official Gazette, includes all the measures in the previously approved annual social security budgets.

Referring to the partial increase in pensions for retirees and pensioners under the general and special social security regimes, Rey González noted that specific increases will be allocated depending on the country's economic conditions.

In this case, he specified, these include the Revolutionary Armed Forces, the Ministry of the Interior, Labor Heroes, Sports Glories, prestigious scientists and researchers, and combatants in the clandestine struggle against bandits and internationalist fighters.

According to the director, the current situation prompted the new measure, which was well received by the population, as the country's inflationary process impacts the purchasing power of pensioners, particularly those who were covered by the regulations of Social Security Law 24, prior to the implementation of the Ordering Task.

With this measure, 88% of pensioners—1,573,320 people—will receive an increase, with the beneficiaries receiving pensions based on age, disability, or death (widows/widowers, orphans, and entitled parents).

In the latter case, pensions will be recalculated by applying the corresponding legal percentage (70% for one beneficiary, 85% for two, 100% for three or more) to the deceased's updated pension, he noted.

"This measure prioritizes lower-income pensioners and is financed with resources from the state budget," emphasized the director.

FROM THE STATE BUDGET TO PENSIONS

Addressing the budgetary scope of the measure, Vladimir Regueiro Ale, Minister of Finance and Prices, reported that state expenditures will be around 25 billion pesos annually.

Supported by improved budgetary performance, increased revenue, implemented tax adjustments, and greater fiscal discipline in the state and non-state sectors, he clarified and acknowledged that there are still challenges associated with late payments, tax evasion, and the need to optimize collection.

The increase will be partial in scope as it will not cover all needs (food, transportation, basic services), contrary to the political will of the State.

However, he explained that “first and foremost, our social programs are funded by the state, supported by a budget that—in conditions of financial stress and in line with economic performance—prioritizes social achievements such as education, healthcare, culture, and this universal program that protects workers. Constitutionally, it’s a duty to guarantee this protection not only to workers but also to their dependent family members.”

The government's agenda prioritizes lower-income individuals. “While the business sector has decentralized powers to improve wages based on productivity, the pension sector is directly dependent on budgetary capacities, affected by the current inflationary process.”

This is the first step in a comprehensive program, he reaffirmed. “As the fiscal situation improves, income autonomy and sufficiency increase, and we strengthen collective responsibility in tax payments, we will be able to expand improvements for pensioners and the budget sector.”

REDISTRIBUTION OF BUDGET UNDEFEATED FOR SALARY PURPOSES

In addition to this social measure, the Council of Ministers approved Agreement 10199 to encourage workforce stability. This regulation establishes the redistribution of unspent budgeted units' salary funds, regulated in the Official Gazette in its extraordinary edition No. 45 of 2025.

This decision is in line with the proposals made by the Head of Government during his speech at the 4th Ordinary Session of the National Assembly of People's Power, in the 10th Legislature, in December 2024, he reflected on the prevalence of an informal exchange market and how it affects exchange rate control, the devaluation of the Cuban peso, increases its inconvertibility, and therefore impacts the functions of money and wages, as well as the interest in work.

Given this scenario, Marrero Cruz explained that these phenomena have several consequences, such as the massive migration of people, especially young people and professionals, to other sectors of the non-state economy and to some companies with higher salaries, and also, a significant portion, the search for life projects outside the national territory.

In order to avoid or reduce these demonstrations, the Council of State approves the redistribution of salary funds. Therefore, in a press conference, Maritza Cruz García, First Deputy Minister of Finance and Prices, outlined some elements to take into account when implementing the regulation.

Cruz García clarified that the application of salary redistribution does not constitute a payment system, although it will be considered additional pay and salary for all legal purposes.

It will be applied to workers in all occupational categories, with the exception of bodies and agencies of the Central State Administration and national entities with approved salary increases.

The source for the redistribution of the salary fund, the vice minister emphasized, will be the incompleteness of the approved workforce, the existence of workers receiving subsidies, maternity benefits, unpaid leave, or other situations in which the worker is not paid a salary.

Each budget administrator approves the Internal Regulations for the redistribution of the salary fund, with the prior agreement of the Board of Directors, and the union organization participates in its development.

In turn, the content of the Regulations must be analyzed at the General Assembly of Members and Workers, and will be incorporated into the Collective Work Agreement once approved.

Both the partial increase in pensions for retired workers and the redistribution of unspent wages from budgeted units are part of the actions planned in the Government Program for 2025.

This working document, among other aspects, conceptualizes the adjustment of labor income and pensions as part of a gradual and prioritized effort toward social protection, allocating resources primarily to the most vulnerable, adapting actions according to the country's economic and budgetary developments.

Translated by Amilkal Labañino / CubaSí Translation Staff