The Cuban regime revealed on Friday that local economic entities will take on the responsibility of pension payments for thousands of retirees across the country. This move subtly acknowledges the government's inability to sustain its own social security system.
Juana Lilia Delgado Portal, the Minister President of the Central Bank of Cuba, detailed the arrangement during a press conference covered by the state-run outlet, Canal Caribe.
Delgado Portal explained that businesses, which are required to deposit their daily sales revenue into banks, will utilize this cash to pay retirees living nearby their locations directly.
"In search of alternatives, we have assessed with local governments the possibility for economic actors to assume the pension payments for retirees in their areas. We've discussed forming an alliance between these economic players and the banks to facilitate the payment process for retirees who reside closer to their businesses," Delgado Portal stated.
The initiative was presented as a "mutual benefit" for both the businesses and the elderly population of Cuba.
"On one hand, we are bringing retirees closer to receiving their pensions without needing to endure long lines at the banks. On the other hand, we are providing convenience to these businesses by eliminating the need to deposit large amounts of cash at the bank," she added.
The Central Bank admitted that the high demand for cash has placed an unsustainable burden on the banking system, impacting pensioners the hardest.
More than half of the ATMs in the nation are either out of service or empty, forcing retirees to wait between four and six hours in lines to collect their pensions. In June, the Granma government conceded that the cash shortage has jeopardized the payment of wages and pensions, with a deficit of over 400 million pesos affecting its 111,000 retirees.
Since April 2026, a pilot program has been in place in four Havana municipalities—La Lisa, Playa, Plaza de la Revolución, and Old Havana—operating under the "Caja Extra" scheme. In May, private micro, small, and medium enterprises began to disburse pensions in Holguín, benefiting approximately 5,000 retirees, which accounts for 9.6% of the total in the municipality. The recent announcement signals a nationwide expansion of this scheme.
Simultaneously, the Official Gazette published Resolution 74/2026, effective since July 20, which indefinitely removes the 5,000 pesos cap on cash transactions between economic actors and raises the monthly transfer limit to 2.5 million pesos. The Central Bank also announced the introduction of higher denomination bills.
Cuba is home to over 1.7 million retirees whose minimum pension is 4,000 pesos per month—equivalent to less than seven dollars at the informal exchange rate—while the basic food basket exceeds 30,000 pesos per person.
Understanding Cuba's Pension Payment Shift
Why are local businesses paying Cuban retirees?
The Cuban government has initiated this measure due to its inability to support the social security system, turning to local businesses to manage pension payments and ease the burden on the banking system.
What is the "Caja Extra" scheme?
The "Caja Extra" scheme is a pilot program that began in Havana, allowing private enterprises to pay pensions directly to retirees, aiming to reduce the strain on banks and provide convenience to both retirees and businesses.
What challenges do Cuban retirees face in collecting pensions?
Cuban retirees face significant challenges, such as long waits of four to six hours to collect pensions due to over half of the country's ATMs being inoperable or empty, alongside a severe cash shortage affecting payments.