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August 11, 2025
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Regime authorizes redistributing “savings” to retain personnel in the budgeted sector

Una sesión del Consejo de Ministros de Cuba

The amounts to be redistributed and the individual amount will be approved by the Board of Directors of each budgeted unit.

Miami, United States. – The Council of Ministers of Cuba approved a salary incentive for the budgeted sector that will be financed with “inejecutions of personnel spending and associated indicators” – that is, with salary funds not executed – and that will have “additional payment and salary to all legal effects”, although “without its application constituting payment system”.

The measure was formalized in the Agreement 10199/2025published in the Official Gazette No. 45 Extraordinary of August 11 and signed by the Prime Minister of the Cuban regime, Manuel Marrero Cruz.

According to the text, the decision responds to the “sustained increase in the labor fluctuation of the budgeted sector” and is adopted under article 113 of the Labor Code and of article 137 of the Constitution. The agreement was approved on August 2.

Scope and financing

The incentive will be applied “to workers of all occupational categories in the budgeted sector, including units with special treatment.” Its source of financing will be the “inejecutions of the approved salary fund”.

The agreement emphasizes that the maximum authorities of each system must verify that the inejecution is “objective” and that the redistribution is guaranteed “with the salary expenses plan assigned for the fiscal year”, among other reasons for workers in subsidy, maternity benefits, unpaid licenses or incomplete templates.

Each budgeted unit must approve an internal regulation, with the participation of the “union”, discussion in the General Assembly of Affiliates and Workers and incorporation into the collective agreement.

This regulation, at least, will define: (a) the source of financing; (b) The periodicity – “can be granted only once or for the period of time that is determined … without this having a permanent, or massive character” -; (c) the procedure for granting, with “high performance criteria”, greater recognition of highly qualified personnel, positions of greater responsibility and approach for competencies; (d) the authorities that certify savings; and (e) the control system.

The amounts to be redistributed and the individual amount will be approved by the Board of Directors “in common agreement with the trade union organization” and must be informed to the General Assembly; The internal agreement must base criteria, amounts and compensation period.

Exclusions and beneficiaries

Organs and agencies are excluded with “salary treatments differentiated from salary increases”, as well as assistance units and educational institutions whose health professionals and teachers receive the benefits of “maximum effort” and “educational work overload.” The payment corresponds to those who did not receive those benefits or only receive the additional additional for years of service.

In the 30 days after the entry into force, the heads of the systems with budgeted units must: (a) analyze the workforce and salary spending to identify who can redistribute; (b) approve general guidelines to apply the payment – referential to prepare the internal regulations; and (c) quarterly evaluate the application and send to the Ministry of Finance and prices a report of results and impacts for a year.

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