Cuba Looks At Social Security Contributions
September 7, 2016 Taxation in Cuba
HAVANA – For the first time in 50 years government workers in Cuba will pay a social security contributions.
In a recent publication the Cuban national newspaper Granma revealed that government workers in the country will soon begin paying Special Contribution to Social Security (CESS).
The new social security contribution will be levied at a rate of 5 percent for any government workers earning in excess of CUC 500 per month (approx. 18.87).
It is expected that as many as 1.5 million employees will be effected by the new levy.
The CESS would be taken directly from the wages of the employee, instead of accumulating over time to be paid annually.
The funds raised from the CESS are intended to be used to cover the cost of the country’s social security system, which already supports 1.7 million pensioners.
This is the first time that Cuba has implemented a social security contribution system in the last 50 years.
Photo by: Rinaldo Wurglitsch