Cuba: Average State Salary Falls from US $18 to $16 a Month
The Cuban government boasts of an increase, ignoring inflation and the depreciation of the national currency.
HAVANA TIMES – On August 30, the official press celebrated a “significant increase” in the average state salary in Cuba during the first half of 2025. According to data published by the National Office of Statistics and Information (Onei), the average monthly salary reached 6,649 pesos, representing an increase of 16.4% compared to the same period in 2024, when it was 5,714 pesos. But behind that optimistic headline, the numbers tell another story: due to inflation and the depreciation of the national currency against the dollar, Cubans’ purchasing power remains stagnant and has even declined.
At first glance, the increase seems substantial. The average salary in state enterprises grew by 24.9%, reaching 7,331.8 pesos, while in the budgeted sector (government employees, health, education, and others) the increase was much smaller, just 6.8%, reaching 5,922.6 pesos.
By province, Havana leads with an average of 7,660 pesos, followed by Artemisa (6,820.1) and Holguin (6,640.9). Guantanamo, Isla de la Juventud, and Granma have the lowest salaries, none exceeding 6,000 pesos. By sector, the highest incomes are in electricity, gas, and water supply (12,362 pesos), followed by construction (11,255.9) and business services (9,077.8); the lowest are in commerce (4,531 pesos), culture and sports (5,153.5 pesos), and community services (4,545 pesos), where salaries amount to barely 11 dollars at the informal exchange rate.
However, both Onei and Cubadebate omit a key fact. At the end of last July, year-on-year inflation stood at 14.37%, which leaves the real increase in salaries at barely 2%. In other words, the 16.4% increase announced by the government does not translate into greater purchasing power because everything costs more. And if we add the accelerated depreciation of the Cuban peso against the dollar on the informal market, the picture becomes even bleaker.
This Saturday, the dollar trades at 410 pesos, far from the 320 pesos a year ago. At that exchange rate, the average Cuban salary has fallen from 18 to 16 dollars per month. This comes as the State itself multiplies stores selling only in dollars and sidelines the Cuban peso, which buys less and less.
Low salaries, especially in the budgeted sector, have led hundreds of workers to migrate to the private sector, where jobs are usually more demanding and offer fewer benefits but better pay. In an attempt to stop the exodus of personnel, the government announced at the beginning of August that, in some sectors, it will distribute among employees the already-budgeted salaries for unfilled state positions.
The Onei report also reveals that, while salaries were rising, the workforce shrank by 6.5%—although they claim monthly productivity grew by 4.7%.
At the same time, the State recently reported an increase in retirees’ pensions aimed at benefiting 1.3 million people. The resolution set an increase of 1,528 pesos for those earning up to 2,472, and up to 4,000 pesos for those receiving between 2,473 and 3,999. Nevertheless, the same pattern repeats itself: inflation wipes out any hope of improving Cuban families’ dire household economies.
First published in Spanish by 14ymedio and translated and posted in English by Havana Times.