HAVANA (Reuters) -Cuban pensioners on Thursday began receiving a new monthly pension payment nearly double the previous one, but many said the extra would be swallowed by high inflation and a scarcity of basic goods in the midst of a prolonged crisis. Cuban President and leader of the Communist Party Miguel Diaz-Canel told the National […]
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Cuban pensioners say significant pension increase is not enough
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HAVANA (Reuters) -Cuban pensioners on Thursday began receiving a new monthly pension payment nearly double the previous one, but many said the extra would be swallowed by high inflation and a scarcity of basic goods in the midst of a prolonged crisis.
Cuban President and leader of the Communist Party Miguel Diaz-Canel told the National Assembly in December that the country must “start improving the situation of retirees, who have given their lives to the Revolution.”
Pensioners, like all workers paid in pesos, have seen their purchasing power decline by as much as 90% over the last four years, according to many Cuban economists.
Their plight has disturbed Cubans at home and abroad with government critics saying that they have been left to suffer.
Residents who have received their social security payment for September, now increased by up to 1,528 pesos to a ceiling of 4,000 pesos, say it still is not enough.
Retired state worker Panfilo Valdivia, 77, welcomed the increase but said there were few goods for sale at the official exchange rate of 24 pesos to the dollar with most prices based on the record 400 peso informal rate.
Valdivia’s pension has nearly doubled to 3156 pesos or $131.5 at the official rate, but is worth just $7.89 on the street. The average state wage is 6000 pesos, according to the government.
“It’s a little more money that comes in now, but almost everything on sale is very expensive,” Valdivia said.
This week eggs were selling in Havana at 2800 pesos for a carton of 30, chicken quarters at 350 pesos a pound and for up to 400 pesos a pound, residents told Reuters.
The import-dependent country’s government mainly blames U.S. sanctions targeting foreign exchange earnings for the crisis that has led to an 11% contraction of the economy since 2019 and a dramatic devaluation of the peso. Critics blame sluggish economic reform.
“The increase is welcome … but isn’t even enough to buy a pack of chicken,” said retired educator Aida Diego.
(Additional reporting by Marc Frank; Editing by Christian Plumb, Kirsten Donovan)