Cuban Economy Minister Announces 'Unprecedented' Shift From Fixed Salaries

Cuba mulls moving from fixed toward fluctuating salaries at state enterprises, Economy Minister Alejandro Gil Fernandez announced on Thursday

HAVANA/MEXICO (UrduPoint News / Sputnik - 15th July, 2021) Cuba mulls moving from fixed toward fluctuating salaries at state enterprises, Economy Minister Alejandro Gil Fernandez announced on Thursday.

"We have reached agreement in the government to introduce an unprecedented measure - to abandon the fixed salary scale at state enterprises," the minister said as aired by Cuban broadcasters.

The measure will not concern all the companies at an early stage, but it will allow to manage the wage bill more efficiently and reward most productive employees. The introduction of measures is set for the second half of 2021, he elaborated.

"After the new system is implemented, all the employees will earn more," Gil Fernandez, who is also a Deputy Prime Minister, added.

The Cuban government also plans to boost economy by renovating the segment of micro, small and medium-sized enterprises. There will be a legal division between management and ownership rights, which will give an impetus and autonomy to this segment.

According to the minister, the new measures will stimulate the economy while securing the prevalent role of state socialist enterprises in the national economy.