Guide to employment, payroll and benefits in

Cuba

Rivermate offers complete payroll, benefits and compliance services for

Cuba

01. Overview

Last updated: 

August 19, 2021

Currency
Cuban Convertible Peso
Capital
Havana
Ease of doing business
Language
Spanish
Population
11326616
GDP growth
1.78%

02. Grow your team in

Cuba

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Cuba

, particularly if you don't have established local relationships. You can hire employees in

Cuba

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Cuba, officially the Republic of Cuba, is a country that includes the island of Cuba, as well as the Isla de la Juventud and a number of smaller archipelagos. The Caribbean Sea, Gulf of Mexico, and Atlantic Ocean all converge in Cuba, which is situated in the northern Caribbean. It is located east of the Yucatán Peninsula, south of Florida and the Bahamas in the United States, west of Hispaniola, and north of Jamaica and the Cayman Islands in the Caribbean. Havana is the largest and capital city, though Santiago de Cuba and Camagüey are also important cities. The Republic of Cuba has an official territory of 109,884 km2. With a surface area of 104,556 km2, Cuba's main island is the largest in the country and the Caribbean. With over 11 million people, Cuba is the second-most populated country in the Caribbean after Haiti. The Ciboney Tano people occupied the area that is now Cuba from the 4th millennium BC until Spanish colonization in the 15th century. Cuba was a Spanish colony from the 15th century until the Spanish–American War of 1898, when it was conquered by the United States and granted nominal independence as a de factocode: lat protectorate in 1902. Cuba attempted to consolidate its democratic regime in 1940 as a fragile republic, but rising political radicalization and civil unrest resulted in a coup and eventual dictatorship under Fulgencio Batista in 1952. Under Batista's rule, open corruption and injustice led to his overthrow in January 1959 by the 26th of July Movement, which later established communist rule under Fidel Castro's leadership. The Communist Party of Cuba has ruled the country since 1965. During the Cold War, the nation was a point of contention between the Soviet Union and the United States, and a nuclear war was nearly triggered during the 1962 Cuban Missile Crisis. Cuba is one of the few remaining Marxist–Leninist socialist states with a Constitution that recognizes the position of the vanguard Communist Party. Cuba was active in a wide variety of military and humanitarian operations in Africa and Asia under Castro's leadership. Cuba is culturally part of Latin America. It is a multiethnic nation whose people, history, and traditions stem from a variety of sources, including the Tano Ciboney cultures, Spanish colonialism, the arrival of enslaved Africans, and a Cold War-era close association with the Soviet Union. Cuba is a member of the United Nations, the Group of 77, the Non-Aligned Movement, the Organization of African, Caribbean, and Pacific States, ALBA, and the Organization of American States. It has one of the world's only planned economies, with the tourism industry and exports of skilled labor, sugar, tobacco, and coffee dominating the economy. According to the Human Development Index, Cuba has a high level of human development, ranking eighth in North America and 72nd globally in 2019.

04. Public holidays

05. Types of leave

Paid time off

Public holidays

Sick days

Maternity leave

Paternity leave

Parental leave

Other leave

06. Employment termination

Termination process

If the employee performs duties that are not authorized by the contract, the employment relationship may be terminated. In Cuba, employment contracts are classified as indefinite, temporary, or for the performance of a specified task. The final two pertain to new positions, substitutes, training, social services, and testing periods for new recruits that range from thirty to one hundred and eighty days, depending on the role provided. Neither party may end the employment relationship during this time period.

Notice period

When a Cuban employee resigns from a long-term contract, he must provide the employer thirty days' notice, with fifteen days for interim contracts.

Severance pay

There is no statutory severance payment in Cuba.

Probation period

There is no statutory probation period in Cuba.

07. Working hours

General

Working hours in Cuba are generally limited to 44 hours in a week.

Overtime

08. Minimum wage

General

Cuba's minimum wage is different for different occupations. The average monthly minimum wage in Cuba is 225 Cuban pesos. The Cuban government supplements this minimum wage with free education, subsidized medical care (after the third day of a hospital stay, daily pay is reduced by 40%), housing, and some subsidized food.

09. Employee benefits

General

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Cuba

to hire a team takes time, money, and effort. The labor law in

Cuba

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Cuba

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Cuba

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Cuba

via our Employer of Record / PEO solution.

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