Starting August 1st, new regulations expanding the powers of the state-owned enterprise sector. To approve its salary organization will take effect, in accordance with Decree 164 of July 29th, 2026. Which also empowers non-state-owned enterprises for this purpose.
The information was provided at a press conference by Jesús Otamendiz, Minister of Labor and Social Security. And Guillermo Sarmiento Cabañas, Director of Labor Organization at the aforementioned ministry.
Moreover the content of Decree 164 and its supplementary regulations are publish in Official Gazette No. 63 of 2026.
The Decree aims to establish the regulations that authorize state-owned enterprises. Also to determine, in a decentralized manner, the organization of their salary system.
Ninth of the planned reforms aims to decentralize the power to approve salary scales to the state-owned enterprise system.
Salary levels will be negotiated with workers, with the participation of the union. And taking into account that salaries will depend on the company’s economic and financial capacity.
The legal document eliminates the restrictions and limits established in relation to:
-Prior authorization for entities within the enterprise system to implement their own salary structure.
-The use of contributions from state investment returns or dividend payments to shareholders as indicators for planning and executing the salary fund, establishing that this fund is contingent upon the entity’s economic and financial capacity.
-The salary structure, which is determined according to the entity’s characteristics and forms part of its salary structure.
-The role of the entity’s management in organizing the salary system, and strengthens the participation of the union and the workers themselves in salary negotiations.
It maintains the established procedure for determining the salary fund in entities. Whose purpose is to provide universal public services with accessibility, regularity, quality, and safety. Or to carry out activities exclusive to the State.
The salary fund is determined taking into account the average salary of companies in the economic activity and territory where they operate. Considering the diversity of existing economic actors, as well as the financial possibilities of the State Budget.
It establishes the same treatment for companies that, exceptionally, are authorized by the empower authority to plan for losses. And that, due to their strategic importance, must preserve their skilled workforce, provided that the source of funding exists.
It establishes the authority and general rules for approving salaries based on job complexity.
Sarmiento Cabañas emphasized the need to clarify that higher efficiency and productivity will result in higher salaries.
With information from Cubadebate
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