Spain allocates an average of €270 per month for each worker hired through the Cuban state-owned company Grupo Palco for its Consulate General in Havana. However, according to official documents, these employees receive salaries ranging from 3,630 to 3,870 Cuban pesos monthly, highlighting the significant gap between Spain's budget and the wages agreed upon in Cuba.
The contract, published on the Spanish Public Sector Procurement Platform under file number 2024SWs00114, outlines a budget of €1,131,295.68 for four years, spanning from January 2025 to December 2028.
When this budget is divided over the 48-month duration and 87 workers covered by the contract, it results in approximately €271 monthly per employee. This figure represents an average of the total budget rather than a specific rate for each individual worker.
The Financial Breakdown of Palco's Involvement
The agreement's annexes, signed on January 1, 2025, reveal the billing details from Palco for services and the corresponding salaries for those providing them.
For an office assistant, Palco bills 5,822.47 Cuban pesos monthly, while the worker's agreed salary is just 3,706.69 pesos. In the case of general service assistants, Palco charges around 5,702 pesos, setting salaries close to 3,630 pesos. For drivers, the service cost reaches 6,079.47 pesos, with a salary agreement of 3,870.06 pesos.
Across these categories, the discrepancy between the billed amount and the salary is about 36%, though the documents do not specify what portion of this amount is attributed to other labor costs or company revenues.
Palco's Role and Cuba's Legal Framework
The agreement stipulates that workers maintain their employment relationship with Palco, while the Spanish Consulate oversees and directs their activities. The state-owned company also retains the authority to accept or reject personnel proposed for service.
This system aligns with Decree-Law 384 of 2019, which mandates foreign entities in Cuba to hire local workers through authorized state entities rather than establishing a direct employment relationship.
This mechanism mirrors the method used by the Cuban regime in its international medical missions, where the state collects revenue from professional services abroad while workers receive only a fraction of those funds.
Political Repercussions in Spain
The contract with Palco has also sparked political questions in Spain. In a parliamentary initiative dated July 9, 2026, deputies from the Partido Popular (PP) sought explanations regarding the roles of personnel supplied by the Cuban company, particularly in processing Spanish nationality applications under the Democratic Memory Law, known as the "Grandchildren's Law."
Lawmakers inquired whether these workers had access to birth records, family information, nationality files, and the Consulate's IT systems. They also requested clarification on potential links between Palco and GAESA, the business conglomerate associated with Cuba's Revolutionary Armed Forces.
In response, the Spanish government acknowledged, in a parliamentary reply dated September 23, 2026, the Consulate's contract with Palco, explaining that Cuban law requires hiring local personnel through a state company.
According to the Spanish Executive, this system has been in place since 2017, with the supplied employees performing administrative, technical, and auxiliary roles under the supervision of Spanish officials.
Furthermore, they assured that these workers do not participate in decisions regarding civil registry files, passports, or visas, and that their access to documentation and systems is subject to security and confidentiality controls.
However, the government's response did not provide a breakdown of the difference between the service charges and the established salaries for the workers.
Understanding Spain's Hiring Practices in Cuba
Why does Spain use Grupo Palco for hiring at the Consulate in Havana?
Due to Cuban law, specifically Decree-Law 384 of 2019, foreign entities are required to hire local workers through authorized state organizations, such as Grupo Palco, rather than establishing direct employment relationships.
What is the financial discrepancy between Spain's budget and Cuban salaries?
Spain allocates about €270 monthly per worker, while Cuban employees receive between 3,630 and 3,870 pesos, revealing a significant gap between the budgeted amount and actual wages.
What roles do the Cuban employees fulfill at the Spanish Consulate?
Cuban employees provide administrative, technical, and auxiliary support under the supervision of Spanish officials, and do not engage in decisions related to civil registry, passports, or visas.