During a recent appearance on the television program "Buenos Días," Jesús Otamendiz Campos, the Cuban Minister of Labor and Social Security, assured the public that salaries for workers affected by the ongoing fuel crisis are secured, despite the disruptions it has caused nationwide.
Otamendiz Campos explained that during the first month of work interruption, employees receive their full base salary. In the second month, this compensation drops to 60%, contingent upon the enterprise's ability to cover it through its own budget or revenues.
In state-funded sectors, applying the 60% salary requires explicit approval from the Council of Ministers, initiated by the Ministry of Labor. The minister justified this bureaucratic process as a way to prioritize job relocation over declaring an interruption.
Government's Focus on Job Relocation
"Given the severe energy crisis in the country, our main focus remains on implementing labor and salary measures that protect workers and ensure the continuity of essential services," Otamendiz Campos stated. He emphasized that the government's priority is not to halt work but to relocate employees: "Our goal is always to reassign workers so they continue contributing to the economic and social development of their communities."
However, the reality for many Cubans paints a different picture. The average state salary in 2025 was 6,930 Cuban pesos, equivalent to about $13 on the informal exchange market, a figure already inadequate before the crisis.
Economic Strain on Cuban Households
Receiving only 60% of this salary after the second month of interruption means a significant drop in income. In a country where a two-person household requires approximately 61,710 Cuban pesos monthly for basic expenses, with 33,000 pesos allocated for food alone, as per Columbia University's Horizonte Cubano analysis, this reduction is substantial.
The job relocation touted by the regime as a "protective" measure has met with resistance from workers. University-educated employees have been reassigned to tasks such as trash collection or sanitation, leading to public outcry. "After five years of university, I have to collect garbage," lamented a Cuban worker in April.
Legal Implications and Worker Vulnerability
The legal framework for these measures, outlined in Decree No. 326 of the Labor Code Regulations, stipulates that if a worker "unjustifiably" refuses a relocation proposal, they are entitled only to 60% of their base salary for one month, after which their employment may be terminated.
Decisions on whether a refusal is justified rest with the entity's head, in consultation with the official union, within a 15-day timeframe, placing workers in a vulnerable position against the state-employer.
The minister's comments come shortly after Cuba's admission of being "out of fuel" to sustain its electrical grid. Last Wednesday, Minister of Energy and Mines Vicente de la O Levy described the situation as "acute, critical, and extremely tense."
On May 13, the electrical generation deficit reached 2,113 MW, with only 1,230 MW available against a demand of 3,250 MW, resulting in daily blackouts of 20 to 22 hours across much of the country.
The Cuban electrical system has faced at least seven total collapses in 18 months, including the national blackout on March 16, 2026, which left the country without power for 29 hours, a direct consequence of 67 years of failed economic management by the dictatorship.
Understanding Cuba's Fuel Crisis and Worker Impact
How are Cuban workers compensated during the fuel crisis?
During the first month of work interruption, Cuban workers receive their full base salary. In the second month, the compensation is reduced to 60%, depending on the enterprise's budget capabilities.
What challenges do Cuban households face due to salary reductions?
With the reduced salary, Cuban households struggle to meet basic expenses, needing approximately 61,710 Cuban pesos monthly, with significant portions allocated for food.
What legal measures affect workers declining job relocation?
If workers unjustifiably refuse a relocation, they may only receive 60% of their base salary for a month, after which their employment can be terminated, based on decisions by their employer and the union.