The new rules announced by the Cuban regime in July for the private sector will come into effect in September, bringing significant changes for the island's entrepreneurs. Ariel Fonseca Quesada, Director of Employment at the Ministry of Labor and Social Security, told the official press that these regulations were developed gradually, addressing public concerns, and had been planned since the creation of micro, small, and medium-sized enterprises (MSMEs) in Cuba.
The official pointed out that Decree Law 90 outlines how Self-Employment (TCP) will be conducted in Cuba and will take effect on September 19. Additionally, Decree Law 92 establishes the social security regime for all workers in MSMEs, self-employed individuals, and non-agricultural cooperatives. Both laws standardize the treatment of Social Security in the non-state sector.
One significant change is the inclusion of family members among the workers that can be hired. A self-employed individual in Cuba will be able to hire up to three people, including their own family members. These family workers must join the general social security regime. "Here, there is a substantial change in concept. The hired workers cease to be self-employed because they are subordinate to the work they perform for that titleholder who is the self-employed worker," Fonseca stated.
The regulations detail a set of prerequisites for engaging in certain activities. The official paid special attention to the case of caregivers for children, the elderly, and people with disabilities. "To engage in TCP in child care, you need a certificate issued by the Ministry of Education, demonstrating that you are prepared for that work. The same applies if you are going to care for the elderly or people with disabilities; you will need a certificate from the Ministry of Public Health," Fonseca noted.
In July, during the third ordinary session of the National Assembly, Prime Minister Manuel Marrero announced the changes in regulations for MSMEs and TCP. Among the main changes for MSMEs and Non-Agricultural Cooperatives (CNA), he pointed out the decentralization of the approval authority to the Municipal Administration Councils (CAM), the implementation of new regulations for the approval of social objectives, and the obligation to declare the legality of the origin of funds.
This week, the Council of Ministers published Decree 107, which establishes more restrictions for MSMEs, non-agricultural cooperatives, and self-employed workers. The norm replaces Decree 49 of 2021 and refers to a total of 125 activities that these economic actors are not authorized to perform.
FAQs on New Regulations for Cuba's Private Sector
Below are some frequently asked questions and answers regarding the new regulations for the private sector in Cuba, which will take effect in September.
When do the new regulations for Cuba's private sector come into effect?
The new regulations will take effect on September 19.
What are some key changes introduced by the new regulations?
Key changes include the ability for self-employed individuals to hire up to three people, including family members, who must join the general social security regime. Other changes involve new prerequisites for certain activities and decentralization of approval authorities.
What is Decree Law 90?
Decree Law 90 outlines how self-employment will be conducted in Cuba and will take effect on September 19.
What does Decree 107 state?
Decree 107 establishes more restrictions for MSMEs, non-agricultural cooperatives, and self-employed workers, replacing Decree 49 of 2021 and listing 125 activities that these economic actors are not authorized to perform.