Employer of Record in Cuba

Hiring Employees in Cuba With An EOR

Hiring in Cuba can seem complex – but with the right facts and tools, it’s simple. This guide walks you through the local job market, shows how Employer of Record services guarantee compliance, and highlights the key labor laws you need to know.

Hiring Employees In Cuba
Employer Of Record In Cuba

Capital City

Havana

Currency

Cuban Peso

 (

$

)

Timezone

GMT -4

Payroll Frequency

Tax Year

Employer Tax

Languages

Spanish

Jesse Weisz

R&D Analyst

Last Updated

September 12, 2025

In This Guide

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Employment Guide For Hiring in Cuba

Looking to grow your team in Cuba? It’s a great way to tap into new talent and fresh markets – but hiring across borders comes with its own set of hurdles. From understanding local labor laws to managing payroll and staying compliant, it gets complex if you don’t have local HR support.

Playroll’s full-service Employer of Record platform handles all the heavy lifting so you can hire confidently in Cuba without setting up a local entity. In this guide, we’ll break down everything you need to know about hiring employees in Cuba, including employment contracts, payroll, statutory benefits, and compliance with local labor laws.

What to Know Before Hiring employees in Cuba

Minimum Wage: The current minimum monthly wage in Cuba is ₱2,100 pesos/month, which is equivalent to approximately $25 USD.

Working Hours: In Cuba, the standard work week is 44 hours, typically Monday to Friday with a short Saturday in some sectors.

Labor Laws: An Employer of Record acts as the legal employer for workers in Cuba, taking on key responsibilities to ensure compliance with local labor laws and regulations. 

Payroll Taxes: In Cuba, employers are required to make payroll contributions that fund social security, health care, and other statutory employee benefits.

Average Salary: The average salary in Cuba is approximately 6,506.

How to Hire Employees In Cuba

Hiring in Cuba for the first time can be overwhelming, especially when navigating unfamiliar employment laws. So, how do you get started? There are three main ways to hire in Cuba: Set up your own legal entity, hire independent contractors, or use an EOR service to handle payroll and global HR for you. Below, we’ll walk you through each option in detail.

1. Set Up A Local Entity In Cuba

Setting up a local entity in Cuba is the traditional route for businesses that want to build a long-term presence in a new market. It allows for direct hiring, fine control over operations, and compliance with local labor laws.

That said, the process is rarely simple. It involves navigating complex legal structures, extensive registration procedures, ongoing payroll administration, and local tax obligations. Beyond the administrative burden, the costs of incorporation, maintaining local offices, and hiring compliance experts can quickly add up.

For companies operating with slim margins or testing new markets, these financial and operational commitments often make setting up a local entity an unfeasible option compared to more flexible and cost-effective solutions.

2. Use An Employer Of Record In Cuba

An Employer of Record (EOR) acts as the legal employer for workers in Cuba, taking care of compliance, payroll, and local labor regulations. This makes it fast and straightforward to bring on talent without the cost and complexity of setting up a local entity. For businesses looking to test new markets or scale teams across borders with confidence, EORs offer a flexible, low-risk solution.

The Employer of Record in Cuba is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with Cuba's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with Cuba's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Cuba's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by Cuba's labor laws, such as health insurance, pension contributions, and statutory leave.

3. Hire Independent Contractors In Cuba

Hiring independent contractors has boomed in popularity because of the cost savings and flexibility they offer. It can be a great option if you require niche skills or short-term project support. Contractors allow businesses to access specialized skills quickly, without the time and cost of setting up a local entity.

However, it’s important to know the limits of this model: contractors are not a substitute for full-time employees. Relying on them for ongoing, long-term roles can create serious compliance risks, including employee misclassification, which can lead to fines, back taxes, and reputational damage.

Playroll’s contractor management solutions make it simple to compliantly engage, onboard, and pay contractors around the world. We provide clear visibility into agreements, streamline payments, and reduce compliance risks – so you can focus on getting the work done. And when you’re ready to take the next step, we can help seamlessly convert contractors into full-time employees through our global Employer of Record service.

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Labor Laws in Cuba

Businesses can only operate smoothly in Cuba if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Cuba below, to avoid any compliance issues.

Onboarding Process

We can help you get a new employee started in Cuba quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment.

Average Salary In Cuba

In 2025, the average monthly salary in Cuba is approximately 6,506.5 CUP, which translates to about US $17 at the prevailing informal exchange rate. Salaries vary notably: for example, in sectors like electricity, gas & water supply, average pay can exceed 12,000 CUP; construction averages around 10,400 CUP, while mining is about 8,677 CUP. Additionally, wages differ by location - with Havana earning more and other provinces less - and by status, with private or business-sector workers often earning more than those in budgeted public roles.The broader economic context is bleak - Cuba is experiencing severe inflation, a drastically devalued currency, and persistent shortages of basic necessities. The purchasing power of wages has plummeted even as nominal salaries have modestly risen; many Cubans still struggle to cover essentials amid ongoing economic contraction, limited reform, and infrastructural challenges.

Not sure what to pay in Cuba? Compare fair, local salaries with our free benchmarking tool.
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Working Hours in Cuba

Minimum Wage in Cuba

How an Employer of Record Helps You Hire in Cuba

Global expansion shouldn't mean losing time to paperwork or dealing with complicated, country-specific HR systems. An Employer of Record helps you keep your focus on talent by handling the operational side of employment in Cuba. That includes onboarding, contract management, payroll processing, and statutory compliance, all aligned with local laws and best practices. The EOR guarantees that employees are legally employed and properly supported from day one.

This streamlined setup allows you to prioritize recruiting the best people and integrating them into your company culture. Your team stays lean, and you avoid getting caught up in the details of local processes or shifting regulations. For founders, global hiring managers, or HR teams working across borders, an EOR multiplies your impact, reducing admin time, preventing errors, and helping ensure that new hires have a smooth experience from the get-go.

Payroll Management in Cuba

Payroll Cycle in Cuba

The payroll cycle in Cuba is usually Monthly, with employees being paid as stipulated in employment contract.

Employment Taxes in Cuba

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The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Cuba tailored to your needs.

Employment Taxes and payroll in Cuba

How an EOR Helps You Run Payroll in Cuba

Hiring in Cuba means taking on local payroll obligations, which often include unique tax rates, contribution rules, and strict documentation. If you're not familiar with the system, or don't have a local entity, it’s easy to make mistakes. That’s where an Employer of Record ccomes in. The EOR manages payroll for your team on your behalf, ensuring every process is accurate, timely, and legally compliant.

Key Ways an EOR Supports Payroll in Cuba:

  • Full Legal Compliance: Ensures all payments, deductions, and filings meet country-specific requirements.
  • Payroll Setup & Processing: Handles salary calculations, tax withholdings, and local reporting obligations.
  • Statutory Benefit Contributions: Pays into required social programs and manages country-mandated benefits.
  • Employee Documentation: Generates compliant contracts and manages hiring and termination paperwork.
  • Local Currency Payouts: Delivers salaries in local currency, avoiding delays or exchange rate issues for employees.

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Work Permits & Visas in Cuba

In Cuba, work permits and visas are necessary for foreign nationals seeking employment in the country. Employers are responsible for ensuring that employees obtain the proper work permits before they can begin working. The main work visa types include the Work Visa (Category 01) for long-term employment, the Specialized Worker Visa for professionals, and the Temporary Employment Visa for short-term assignments. Employers must apply for work permits, submit necessary documentation such as an employment contract and medical certificates, and assist employees in obtaining work visas once the permit is approved.

Annual Leave & Company Policies In Cuba

Mandatory Leave Entitlement in Cuba

The annual leave entitlement in Cuba is 30 calendar days for a full time worker after completing one year of service. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

An Employer of Record (EOR) helps businesses manage annual leave, paid time off (PTO), and local holidays across the globe, including in Cuba. By partnering with an EOR, companies ensure full compliance with local labor laws in Cuba when it comes to annual leave and time-off management. EOR providers like Playroll offer platforms that simplify tracking and managing employee time off in Cuba. By outsourcing this responsibility to Playroll, you can streamline leave management, ensure compliance, and free up time to focus on other business priorities.

Annual Leave and Company Policies In Cuba

Employee Benefits in Cuba

Using an Employer of Record to Administer Benefits in Cuba

When hiring across multiple countries, maintaining consistency in how you deliver employee benefits quickly gets tricky. Each country, including Cuba, has its own legal rules, cultural norms, and contribution systems. An Employer of Record helps you strike the right balance between global structure and local compliance. They take over the complexity of delivering benefits that are aligned with Cuba’s legal requirements and competitive with local market expectations.

From ensuring statutory benefits are in place to managing local onboarding timelines and enrollment systems, the EOR provides a seamless experience for both employer and employee. This makes it easier to grow your team across borders without reinventing your benefits process in each new location. You stay in control of your overall benefits strategy, while the EOR takes care of executing it in a way that works legally and culturally in Cuba. It’s a smarter way to scale benefits globally without losing local relevance.

Termination and Severance Policies in Cuba

Employment Termination and Severance Policies in Cuba

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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ABOUT THE AUTHOR

Jesse Weisz

Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).

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FAQs About Hiring in Cuba

How is income taxed in Cuba, and what are the rates?

Cuba's income tax system, if applicable, may apply progressive rates to different income levels. The government may use taxation to fund public services and social programs.

Are there any tax incentives for businesses in Cuba?

Cuba may provide certain tax incentives for businesses, especially those aligned with state priorities. The government plays a central role in economic planning and management.

What is the average salary in Cuba?

The average monthly salary in Cuba is about 6,506 CUP - roughly US $17 - though wages vary by industry, experience, and region, with higher pay in sectors like utilities and in Havana compared to other provinces.

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