Cuba’s finances are something that fascinates a lot of people.
Ever since 2014 when a graphic was released onto the web that suggested the average hourly rate in Cuba is just 5 cents in US currency, people have questioned just how much the average salary is in Cuba.
Looking on from a Western perspective, Cuba truly is fascinating.
This country is run by a Communist government and has been communist for a number of years.
This in particular has a huge impact on how Cuba works financially as a country.
In this guide, we’ll be taking a look at what the average salary is in Cuba, and how Cuba’s financial situation as a country affects this.
So keep on reading to find out more!
What Is The Average Salary In Cuba?
First things first, let’s take a look at what the average salary is in Cuba.
At the time of writing, it is expected that the average monthly salary in Cuba is going to trend around 1,050.00 Cuban Pesos.
This would put the average annual salary at around 12,600 Cuban Pesos a year.
It is important to note that this average does take into account all jobs, and that salaries for some jobs will be significantly higher.
Due to the fact that Cuba has its own currency, it can be difficult to really know how much 12,600 Cuban Pesos is.
To put this into perspective, this converts to around 525 dollars.
So, it is very easy to see why so many people were alarmed when that graphic was released back in 2014.
This is when it becomes really important to remember that Cuba is a communist country not a democracy.
Communist countries have different values, and as a result the government in Cuba supports its people differently.
It is also important to remember that it has a different cost of living to Western countries, so let’s take a look at what the cost of living is like in Cuba.
Does Cuba Have A High Cost Of Living?
Understanding the cost of living in Cuba can be a little tricky.
This is partly because Cuba has two different currencies: CUC and CUP.
CUC is commonly used by those visiting Cuba for a holiday, whereas CUP (Cuban Pesos) are generally only used by Cuban nationals for most daily purchases.
The exchange rate for these two currencies is very different.
At the time of writing, a single CUC is equal to around the same amount as a single dollar, whereas a single dollar is equivalent to around 24 Cuban Pesos.
This is why most Cuban nationals tend to use Cuban Pesos.
In addition to this, it is also important to acknowledge that there are a number of things in Cuba that you don’t have to pay for.
Things that you would usually have to pay for if you are living in the USA.
This is because the Cuban government subsidizes a number of things, and covers the complete cost of others.
So, let’s take a look at what the Government subsidizes in Cuba.
The Impact Of Government Subsidiaries
As we have said, the wages in Cuba are considerably lower than wages in the USA, however the cost of living is lower too.
This is because the government subsidizes a number of things for those living in Cuba.
So, let’s take a look at how these government subsidies impact the cost of living in Cuba.
The first thing to note is that both education and healthcare are public and completely free as they are funded by the Cuban government.
In addition to this, the Cuban government also funds housing, so Cuban nationals do not have to pay taxes on their homes, rent or mortgages either.
If that wasn’t enough, food is also subsidized by the government too.
Every Cuban receives a ration book, which allocates them a certain amount of basics.
This includes things such as beans, rice, bread, and more.
This means that people living in Cuba will only have to spend a very small portion of their salary on food, because they will only need to buy food to supplement these basics.
For reference, the country’s favorite meat, beef, only costs around $0.02 per pound of meat.
In general, most things in Cuba are cheaper than in the USA, and this is why the salaries tend to be lower.
However, things that are imported to Cuba, from countries such as China, tend to cost a similar amount in Cuba as in the USA.
So, things such as toiletries and basic goods tend to seem more expensive in Cuba than in the US.
What Are The Highest Paying Jobs In Cuba?
As in any other country in the world, there are some jobs that simply pay more in Cuba than others.
So, let’s take a look at the average salaries of some high paid jobs in Cuba.
- Doctor/Surgeon – 44,100 to 123,000 Cuban Pesos
- Judges – 37,000 to 104,000 Cuban Pesos
- Lawyers – 30,000 to 83,000 Cuban Pesos
- Bank Managers – 52,200 Cuban Pesos
- College Professors – 39,200 Cuban Pesos
Of course, these are high flying jobs that would pay very high wages in most countries.
So, it really isn’t surprising that the average salary for those living and working in Cuba is considerably lower than the wages that we have just looked at.
Frequently Asked Questions
What Is Cuba’s Minimum Wage?
Cuba does not have a minimum wage rate in the same way that many other countries do.
Instead of having a national minimum wage, Cuba has different minimum wage rates depending on occupation.
So, it is very difficult to say exactly what the minimum wage in Cuba is.
However, across the multiple different minimum wage rates for different occupations, the average for 2022 is 225 Cuban Pesos a month.
However, if you want to find out a specific figure, you will need to research the Cuban minimum wage rate for that occupation.
What Is The Average Hourly Rate In Cuba?
When converted to US dollars, the average hourly rate in Cuba is around 11 cents an hour.
This is assuming that the average worker works around 9 hours a day, 5 days a week, 4 weeks a month.
Of course, this figure is just an average, and it will differ depending on occupation, and hours worked.
Is Cuba Poor?
When you convert the numbers we have discussed in this guide to Cuban Pesos, it is easy to assume that Cuba is a poor country.
But is this actually the case? Due to its turbulent history, Cuba is much poorer than a lot of other countries in the world.
However, it is also important to remember that things are much cheaper in Cuba when you look at the salaries we have discussed in this guide.
In short, the average salary in Cuba is around 1,050.00 Cuban Pesos a month.
This works out to around $525 a month. In this guide, we have taken a look at this in more detail, and lots more.
Thank you for reading!