Employer of Record 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.

Payroll Cycle in Cuba

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

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:

• Key Ways an EOR Supports Payroll in Cuba:
• Full Legal Compliance: Ensures all payments, deductions, and filings meet country
• Payroll Setup & Processing: Handles salary calculations, tax withholdings, and local reporting obligations.
• Statutory Benefit Contributions: Pays into required social programs and manages country
• 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.

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.

Mandatory Leave Entitlement in Cuba

The annual leave entitlement in Cuba is 21 days for a full time worker. 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.