Cuba changes the way pensions are calculated due to age and disability
The Council of Ministers has approved the change in the calculation method for the age and total disability pension established in article 195 of Decree 283 of 6 April 2009 known as the “Regulations of the Social Security Law”.
According to the latest Decree 99 published in the General Official Gazette No. 1 of 2024, the basis of calculation for age and total disability pension will be determined from the average monthly salary obtained from the highest salary received by the worker in five-five. period of the year.
This salary pension will be drawn from the last fifteen calendar years preceding the application.
The legal text clarifies that, for the purposes of this decree and the determination of the aforementioned pension, the average monthly salary shall cover the income generated by salary and other legally recognized payments that form part of the calculation basis for long-term benefits. Social security.
If a worker receives partial disability pension, the amount will be added to the average monthly salary. Similarly, provisions are established for workers who meet the requirements for a total disability pension but have worked less than five years, their average salary is determined by dividing the total salary by the number of months worked.
The decree also addresses the inclusion of certain concepts, such as payments for profit distribution, payment systems for results, specific activities in port activity or other legally recognized payments that do not constitute salaries but are part of the long-term calculation basis. Term benefits.
In these cases, if the resulting amount exceeds the amount corresponding to the most critical group of the existing pay scale, one hundred percent of the said amount, adjusted by the regressive scale, shall be considered as the basis for calculating the pension.
In addition, based on the provisions of the Decree-Law of November 18, 2020, a transitional procedure has been established for the calculation of pensions and social security subsidies until 2025. Pension procedures for age and total disability commenced before the entry into force of this Decree shall continue their course under the initial regulatory provisions.
With this new regulation, the provisions contained in Article 193 of Decree 283 of April 6, 2009 “Regulations of the Social Security Law” as well as Article 6 of the Decree will be repealed, in relation to the calculation of pensions. 25 On November 25, 2020, “Amendment 283 ‘Regulations of the Social Security Act’”.