Ministry of Economy publishes the new measures for the improvement of state companies

 The Ministry of Economy and Planning (MEP) of Cuba released today the new measures aimed at strengthening the socialist state enterprise approved in the Council of Ministers this September.

Among the decisions made by the highest governing body of the island is to make the distribution of retained earnings after taxes more flexible, starting with the elimination of the limit existing until now of up to five average wages.

In addition, the Cuban executive plans to expand the use of the compensation fund to finance investments and contribution of social capital to create companies, indicates the document published this Wednesday on the MEP website.

In this sense, they will empower the Local Government Boards to authorize or not the return of the compensation fund, which grants greater autonomy to the territories.

The top management of the country also approved the generalization to the entire business system of "pay for high performance", a modality currently used in companies that apply the so-called business improvement.

At the same time, they will allow retired workers to be hired again in the same position held until the moment of retirement, whenever it is in the interest of the entity.

Regarding pensioners, the new provisions modify the calculation of the monthly payments of those with more than 45 years of service who return to employment for a further five years.

It will also be possible to hire the workers of an entity to perform certain services other than those stipulated in their contracts outside of their working hours, which will allow the salary to be readjusted according to the new function and with a tax on the new income.

Another measure will now allow companies that produce for export to directly manage financial or commercial credits, provided for in the economy plan, with responsibility for their return.

State companies, one hundred percent Cuban mercantile companies, and other forms of foreign investment that negotiate with the Mariel Special Development Zone, will be allowed to retain 50 percent of the currency from commercial operations.

These and other decisions are inserted into Cuba's new socioeconomic strategy to face the global crisis derived from the Covid-19 pandemic, as well as the intensification of the United States blockade against the island.