In remittances alone, more than three billion dollars arrives in Cuba every year. I am not sure… But either way, let’s say it is between 10% and 50%. I lived in Cuba in the late 40’s early 50’s. I’m just saying that there is a huge other side to this story. Hi Mario, could i perhaps ask you some questions regarding the Cuban economy? It is far better to compare Cuban immigrants to the USA with all other immigrants to the USA, rather than just to Hispanics. Doctor? Copyright 2014 Full Compass Guides | All Rights Reserved. You might think that overseas vacations are very common, but in fact, when you consider the overall population, travel is rare. Biden’s Victory: a Eunuch Presidency Beckons, The Task of ‘Sleepy Joe’ is to Put Liberal America Right Back to Sleep. This usually has a cost associate, depending on the job. He further noted that an average salary would go up from $24 a month to $42 a month. soy de cuba. “Anyone who doesn’t have a family member abroad or is a leader, is out of luck,” she says. Minister Gil revealed plans to develop new and diverse services, like national tourism, which had grown 13% since the start of the year, eating out and communications, including internet access and phone credit. A place stopped in time,” he explains. They are the equivalent of the 1 percenters anywhere else in the world. Meanwhile, all social programmes will be preserved. Where can you get paid more, working for a private company or for the government? Occasionally, some companies like to celebrate excess earnings and profits with their staff collectively in the form of bonuses that are granted to everyone. The last time I asked at the rental office I was told it is a flat 10%. 2) Regular taxes. Still, they don’t starve and exist food stamps and other government help. Prices in all sectors will be closely monitored and the public was urged to report ‘irresponsible’ and ‘opportunistic’ price raises to authorities to prevent abuses and speculation. China is Working to Expand Its Ties to Latin America, Victims of Nuclear Bomb Tests on U.S. They are simply the people who want to complain the most. It seems impossible and I think it will be impossible. Public sector employees in Cuba earn 11% more than their private sector counterparts on average across all sectors. Restrictions on relations between these entities will be removed. The mother loves collecting handbags. There is tremendous gang violence. Everybody just lies and says they earn nothing. For example, a restaurant permit probably cost like 30 cuc ($30 USD) per month. Cuban enterprises which supply domestic products and services to foreign businesses operating in the Mariel Special Development Zone will be permitted to retain 50% of their profits. People often have misconceptions about the rest of the world, or places they have never visited. earning so much more? Challenges: avoiding inflation and increase national production. The CUC currency is reserved for hard goods like televisions, computers, cell phones, appliances. All students have side jobs too. In the USA it is far more about being lucky. But it is their goal. Do you want to learn even more about Cuba? Similarly, non-exporting state enterprises can retain surplus revenues, after payments due to the central fund, and decide how to invest those, including in projects with domestic non-state enterprises and foreign companies. A person working in Cuba typically earns around 21,900 CUP per month. gross vs. net: 14%. Accountant? Already in May 2019 some new limits were introduced for basic foodstuffs purchases following scarcities blamed on the tightening US blockade. The average increase in compensation while changing jobs is approximately 10% more than the customary salary increment. Because basically the main point is that while Cuban immigrants do well compared to other Hispanics, they generally are much worse off than all other immigrant groups. The average wage is about 20 to 30 cuc per month. European, American, Cuban, Canadian. Mario. I still spend several months out of the year there. The announcement read on state television said that the minimum salary would be nearly $17 a month while the average salary would increase from $32 to $44. Then the owner pays income tax. Employees who earned a Bachelor's Degree earn 24% more than those who only managed to attain a cerificate or diploma. I’m not an economist, but it seems like if needs are already being met and they can get $30 a month, any additional state income is profit and could boost those salaries considerably. This aims to ‘reverse the pyramid’ so jobs of greater complexity and responsibility, requiring higher qualifications, receive substantially higher remuneration, serving as an incentive to work towards leadership positions. ‘Anything that increases efficiency must be evaluated for incorporation into the plan’, said Gil. It basically states that the average wage in Cuba works out to about 5 cents per hour. 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So my question was always for Cubans complaining, if their govt can drop all social services and allow total free market, and they start earning like $200 a month where they pay for everything, can they survive with that average? Select city in Cuba: Cost of living in Cuba is 28.35% lower than in United States (aggregate data for all cities, rent is not taken into account). Property taxes and goods and service taxes are zero. In Cuba, borrowing is difficult. Food is subsidized, electricity cost $1.00 a month for my friend, education is free, kids gets to receive gifts during XMAS, health is free, no taxes on real estate, no homeless. Professionals who attained a Master's Degree are awarded salaries that are 29% more than those with a Bachelor's Degree. But clearly, the world is still divided by country boundaries and according to the rules of law, you cannot just pack your bags and move to another country and become a citizen. The tax code states that for those independent workers earning more than 2000 cuc per year, the marginal tax rate is 50%. She is the author of Che Guevara: The Economics of Revolution and co-author with Gavin Brown of Youth Activism and Solidarity: the Non-Stop Picket against Apartheid. Things are already looking better, right? They watch television, chat with friends. On a macro level it is very common for people to desire to leave their country of origin in search of a better or different life somewhere else. According to the economist Carmelo Mesa-Lago, when speaking of an increase in the average wage, a distinction must be made between the nominal wage, that is, the amount of money people receive, and the real wage, adjusted for inflation. Rental rates for properties are controlled and most Cubans own their own homes. State enterprises whose exports exceed the plan will retain all or part of the extra hard currency earnings (after meeting obligations to the state) and can use those funds for essential imports or to pay other national producers. Capitalism was a new thing and nobody wanted to push the limits. Average Monthly Salary in Cuba is $29.60 US. So we can say they make maybe 70cuc per month on average from their state and side jobs combined. At the end of June, the National Bureau of Statistics and Information (ONEI) reported that the average salary at national level reached 740 CUP per month, slightly more than 29 CUC. Every one of the 1,470,736 workers in this sector will receive the pay rise, at a cost to the Cuban state of over seven billion Cuban pesos annually. Usually jobs are classified into two categories: salaried jobs and hourly jobs. How a Revolutionary People have survived in a Post-Soviet World. No… So not all Cubans are happy either. Download historical data for 20 million indicators using your browser. A tourist from Cuba would be able to travel to other countries if they receive a visa from the other countries. Despite the average wage in Cuba looking like it is extremely low by western standards, we must now factor in the actual cost of living in Cuba. Tipped a lot but was well worth it. But Cubans can save up and travel just like anybody else. So, saying that the problem is that Cuba ” won’t give its citizens the freedom to leave” is both false and ridiculous. In our comparison over 78 countries, the USA comes 9th with an Thank you very much for this. Rent in Cuba is, on average, 84.53% lower than in United States . I would guess that the “campesinos” in Cuba are much better off since 1959, Their children go to school, they have medical coverage and way more food to eat then before the revolution. But anyway, the Cuban government is not rich, but with the tourist dollars now entering the economy, things are much better. Either way, you are definitely not getting ripped off if you get food from a bodega or venta libre depot. Non-state enterprises may be facilitated to export through arrangements with state entities. It’s a process, but it is happening. I think not. Actually emigration has been a huge theme since mankind started. Also many are supporting several family members.Rural Cuba is much different than urban Cuba, even with CUCs many items are just not available. So that’s about 10$ per day. Or they are so uneducated and lazy that they could not participate at all in society. The government charges a permit of 30cuc per rental room, per month. Cubans are not hungry. take care man. Most of them are economic. Hi Mark. Staggering numbers. It is a sad and ridiculous sight. But, in practice, not 1 single person on the whole island pays 50% tax. He has lived for 12 years in the Nuclear City, just a few kilometers from Juraguá, in the province of Cienfuegos, where the Soviet Union began to build a nuclear plant that was never finished. Just the USA did… And the fact that Cuba is still around, is communist and is in fact doing pretty well for itself, all things considered, is a great testament to the power of Cuban ingenuity, perseverance, courage and pride. Cubans have full freedom to leave the country. Salaries range from 5,550 CUP (lowest average) to 97,900 CUP (highest average, actual maximum salary is higher). 1) All independent workers must have a work permit for the type of work they do. But the government does not need to make money from taxes in order to spend it on services. Where surpluses rise, bonuses can take workers’ pay up to five times the average salary (currently capped at three times). Hi, I am just wondering how a tourist form Cuba would be able to feed themselves or where would they get shelter? -Peter Drucker. Some Cubans immediately responded to the news by seeking (re)employment in the state sector, but ministers warned against a return to inflated state sector payrolls stating that only essential workers should be recruited. Cubans have enough food. Thanks Mario very interesting i just got back from Cuba and i learn a lot from you! After you surpass the limit indicated in the Libreta (the ration booklet), you can buy other goods at a Venta Libre depot. So maybe they earn an extra 30cuc to 50cuc per month from side jobs. President Raúl Castro himself acknowledged that wages “do not satisfy all the needs of the worker and his family” and, in one of his most critical speeches about the national reality in 2013, he said that “a part of society” had become accustomed to stealing from the state.
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