Updated on: 2025/08/04 14:03 (UTC)
Overview
The primary source of employment law in Cuba is the Labor Code, which is administered by the Ministry of Labor and Social Security.
Hiring
Employment Contracts
The Labor Law mandates that an employer provide the employee with a written contract specifying the:
- duration of the contract,
- duties,
- work performance requirements,
- salary,
- pay period,
- length of workday and schedule,
- social security benefits and
- health and safety protections.
Newly hired workers at state enterprises are required to work for a probationary period, the length of which will be determined by the collective bargaining agreement. Although the probationary period is generally about 30 days for most jobs, it can be extended to 180 days for employment that requires a high level of skill or advanced education or training.
At the conclusion of the probationary period, the worker and employer enter into a new employment contract for either permanent or fixed-term work.
Restrictions on Hiring
The minimum working age in Cuba is 17 years, although 15- and 16-year olds can be hired if for some reason they cannot be reincorporated into the educational system. Full-time students are not permitted to work unless specifically authorized to do so.
Private companies must hire labor through state-run employment agencies, which select the workers and handle labor disputes. Employers pay the agency their workers’ salaries, and the agency pays the workers in local pesos after taking a percentage. Employers must use Cuban citizens and residents for all positions with the exception of high-level management.
Recordkeeping
Employers are required to keep records documenting the background and work history of employees and the labor unions to which they belong.
Background Checks
No provisions are included in Cuba’s Labor Code covering employee background checks.
Noncompetition Agreements
No provisions are included in Cuba’s Labor Code covering noncompetition agreements.
Reference Citations
Employment Contracts: Labor Law, 1984, No. 49, arts. 22-25, 28-30, 34-37 (Spanish)
Restrictions on Hiring: Labor Law, 1984, No. 49, art. 26 (Spanish)
Recordkeeping: Labor Law, 1984, No. 49, art. 61 (Spanish)
Immigration and Work Permits
In General
Foreign workers must apply for a work permit from the Ministry of Labor and Social Security.
Visas and Work Permits
With very few exceptions, employers are required to use Cuban citizens and residents for all positions. Exceptions include members of a management board or administration. Employers usually are unable to select their own employees but must use the state employment agency, which does the actual hiring and charges the employer a fee.
Foreign workers that want to pursue professional employment must apply for a work permit from the National Work Permit Office of the Cuban Ministry of Labor and Social Security. The work permit corresponds to the temporary resident immigration status granted by the Immigration and Nationality Directorate of the Ministry of Interior. The maximum duration of the work permit is one year from the date of issue.
Once the work permit is acquired, the Immigration and Nationality Directorate of the Ministry of Interior can grant temporary residence.
A tourist card for a single stay of up to 30 days or a business visa may be issued by the Business Division of the Cuban Interests Section.
Reference Citations
Employment Contracts: Ley de la Inversion Extranjera (Spanish)
Nondiscrimination
In General
Discrimination based on race, skin color, sex, national origin, religious creeds or sexual orientation is prohibited and punishable by law.
Reference Citations
Nondiscrimination: Labor Law, 1984, No. 49, art. 3 (Spanish); Constitution of Cuba, 1976, art. 42 (Portuguese)
Employee Privacy
Employee Data
Cuban law does not address employee privacy.
Employee Monitoring and Surveillance
Cuban law does not address monitoring and surveillance of employees.
Reference Citations
Cuba law does not address employee privacy.
Compensation
Hours of Work
The Labor Law provides for an eight-hour workday with a limit of 44 hours per week. Workers are entitled to a 30-minute break each day and a full day of rest each week. The weekly day of rest is generally Sunday.
Maximum work hours for minors aged 14 to 18 are six per day.
Minimum Wage
The current minimum wage in Cuba is 225 pesos per month.
Overtime
Overtime is any time worked in excess of normal working hours. Employees may not work more than four hours of overtime on two consecutive days or 160 hours of overtime in one year.
No premium for overtime work is specified in the Labor Code. Overtime work may be remunerated in cash or with compensatory time off.
Wage Payment
Wages are disbursed by the state employment agency ACOREC. Remuneration must be paid at least once a month in Cuban or convertible pesos.
Mandatory Bonuses
Bonus payment schemes are common in Cuba but are not addressed in the Labor Code.
Reference Citations
Hours of Work: Labor Law, 1984, No. 49, arts. 3, 67, 80-81 (Spanish)
Minimum Wage: Labor Law, 1984, No. 49, art. 100 (Spanish)
Overtime: Labor Law, 1984, No. 49, arts. 67, 77 (Spanish)
Wage Payment: Labor Law, 1984, No. 49, art. 123 (Spanish)
Benefits
Vacation
Employees are guaranteed a minimum 30 days’ annual leave. Leave payment must be made no later than the last day of work before the beginning of leave. All but seven days of leave may be carried over six months into the following year.
Holidays
Nine holidays are specified in the labor law:
- Jan. 1: Anniversary of the Revolution
- Jan. 2: Victory of Armed Forces Day
- May 1: International Workers’ Day
- July 25: Day Before the Asalto al cuartel Moncada
- July 26: Asalto al cuartel Moncada (Day of National Revolt)
- July 27: Day after the Asalto al cuartel Moncada
- Oct. 10: War of Independence
- Dec. 25: Christmas
- Dec. 31: New Year’s Eve
Maternity Leave
Pregnant women are entitled to a total of 18 weeks’ paid leave (six weeks before the birth and 12 after) at full pay. Women can receive an extra two weeks’ paid leave if the birth is delayed.
Female employees who are pregnant or have children up to 1 year old are exempt from working overtime or being seconded to another locality.
Paternity Leave
There is no legal entitlement to paternity leave, although a father may be eligible for paid parental leave.
Sick Leave
Benefits of 60 percent (50 percent if hospitalized) of average daily earnings in the year prior to the date of the accident or disease are paid after a three-day waiting period (if hospitalized, no waiting period) for up to six months or until a disability pension is paid. The minimum benefit is 50 percent of the legal monthly minimum wage. Benefits may be extended an additional six months with a medical certificate.
Medical certification is required every 30 days, review by a medical committee every 26 weeks.
Other Leave
Paternity leave. Mothers or fathers have the option of extended leave at 60 percent pay until a child reaches 1 year old and the right to return to the same job at the end of the leave.
Pensions and Social Security
The legal retirement age is 70 for men, 65 for women with 35 years’ service.
Administered by the Directorate of Social Assistance and Social Services and the National Institute of Social Security under the oversight of the Ministry of Labor and Social Security, the social security system manages illness, accident, maternity, invalidity, and old age insurance benefits.
Employers must contribute 14 percent of gross payroll to the social security fund. The employee rate for social security contributions ranges from 1 to 5 percent of earnings.
Workers’ Compensation
Workers’ compensation is covered by Cuba’s social insurance program, which is administered by the Directorate of Social Assistance and Social Services and the National Institute of Social Security under the oversight of the Ministry of Labor and Social Security.
Temporarily disabled employees receive benefits equal to 80 percent of average earnings in the year prior to disability (70 percent if hospitalized) for six months from the first day of disability or until assessed with a permanent disability. Permanently disabled employees are eligible for benefits equal to 60 percent of the insured’s average earnings in the best five of the last 15 years plus 2 percent of earnings for each year of employment exceeding 30.
Employers must contribute 14 percent of gross payroll to the social security fund. The employee rate for social security contributions ranges from 1 to 5 percent of earnings.
Reference Citations
Vacation: Labor Law, 1984, No. 49, arts. 88, 95 (Spanish)
Holidays: Labor Law, 1984, No. 49, arts. 83-85 (Spanish)
Maternity Leave: Labor Law, 1984, No. 49, arts. 215, 218 (Spanish)
Family Leave: Law No. 234 of 2003, arts. 15-16 (Spanish)
Sick Leave: Law No. 105 of 2008, arts. 34-35, 100 (Spanish)
Pensions and Social Security: Law No. 105 of 2008 (Spanish)
Workers’ Compensation: Law No. 105 of 2008 (Spanish)
Labor Relations
In General
The state-controlled Confederacion de Trabajadores Cubanos (CTC) is the only legal union, and all workers are required to be members.
Right to Organize
The Confederacion de Trabajadores Cubanos is heavily controlled by the state and the Communist Party, which appoints its leaders. Membership is compulsory for all workers. The government explicitly prohibits independent trade unions.
Any attempts to form free trade unions are obstructed by the government, mainly through restrictions established by the Associations Act (Ley de Asociaciones).
Strikes and Lockouts
No provisions are included in Cuba’s Labor Code covering the right to strike. The government has said there is no need to call strikes since the demands of official trade union organizations will always be heard by the authorities.
Reference Citations
Cuban law does not address labor relations.
Safety, Health and Security
In General
Workers are entitled to safe and healthy working conditions.
Workplace Safety and Health
Provisions related to occupational safety and health (OSH) are contained in the Labor Law, a separate OSH law passed in 1977, and regulations promulgated in 1982.
Under Cuba’s OSH laws, employers must ensure safe and healthy working conditions, systematically improve them, and adopt preventive measures to avoid accidents and diseases.
The provisions contained in the OSH laws apply to all employees in the private sector. No worker category is excluded by the law.
Employers are required to perform medical check-ups on workers, and workers are obliged to take the tests. Workers must take medical examinations at least every three years
Employers are required to produce a written OSH policy in consultation with workers and their representatives.
Reference Citations
Workplace Safety and Health: Labor Law, 1984, No. 49, art. 3 (Spanish); Public Health Regulation, No. 12, 1988, art. 153 (Spanish)
Termination
Termination by Employer
Employers can terminate a worker’s employment for any reason provided the termination meets the notice requirements and other terms of the employment contract. If the employer terminates an indefinite-term contract, it must provide 30 days’ written notice to the employee and assist the worker in finding new employment. Fixed-term contracts require 15 days’ written notice. Employers may terminate an employee’s contract without notice only in certain prescribed situations.
Employers may terminate an employee’s contract without notice only in situations where:
- the employee’s professional capacity has diminished to the point where he or she can no longer do the work,
- the employee has violated the employer’s rules of conduct,
- the employee has failed to comply with the terms of the contract,
- the employee has received a criminal conviction carrying a prison sentence of more than six months, or
- the employer is conducting a general layoff and there is no possibility that the employee can be placed in or trained for an alternate position.
In each case of dismissal, the worker has the opportunity to appeal the decision through established grievance procedures.
Plant Closings and Mass Layoffs
No provisions are included in Cuba’s Labor Code covering plant closings and mass layoffs.
Payment on Termination
Terminated employees are entitled to wages for work done, including annual paid leave and social security contributions that correspond with those days.
If a contract is terminated for violation of work rules, the worker is entitled to the salary for the work up to that point, accumulated annual vacation pay and any other benefits acquired during employment. When a worker’s contract is terminated due to diminished performance—and the worker cannot be placed or trained in an alternate position—he or she is entitled to additional compensation equivalent to two months’ salary.
Unemployment Insurance
Workers who lose their jobs are entitled to unemployment insurance benefits at 100 percent of salary for the first month and 60 percent thereafter. The duration of benefits depends on years worked. To qualify for benefits, workers must be able and willing to work.
Reference Citations
Termination by Employer: Labor Law, 1984, No. 49, arts. 34, 50-51, 55 (Spanish)
Payment on Termination: Labor Law, 1984, No. 49, art. 60 (Spanish)
Unemployment Insurance: Law No. 105 of 2008, art. 27 (Spanish)
Personal Taxes
Residency Requirements
A resident for tax purposes is anyone residing in Cuba for more than 180 days in the tax year.
Taxable Income
Residents are taxed on all sources of income, domestic and international. Nonresidents are only taxed on their income from Cuban sources. Salaries, wages, bonuses, and cash in kind are considered income and are taxable.
Tax Rates
The income tax rate for residents of Cuba ranges from 10 percent to 50 percent depending on the level of income.
Reference Citations
Personal Taxes: Law No. 113 0f 2012 (Spanish)
Web References
Law and Regulation
Constitution of Cuba, 1976 (Portuguese)
Employee Maternity Law (Spanish)
Labor Law, 1984, No. 49 (Spanish)