Amid a severe crisis that has driven a large portion of the Cuban population into extreme poverty, the island's regime has dissolved the National Social Security Institute by decree. During the regular session of the National Assembly of People's Power in September, deputies approved the Decree Law for the Dissolution of the National Social Security Institute, as reported by national television.
According to the official report, the Ministry of Labor will now take on the role of "controlling the application and effectiveness of social protection and security" in the country. Additionally, provincial functions will be managed by the provincial labor and social security departments, the report detailed.
The Cuban regime is facing an exodus of its economically active population, while social security remains insufficient to minimally meet the needs of island residents. This year, the government approved four new decree laws, including a significant new regulation concerning the social security of Cuban workers contracted abroad but residing in the national territory.
The decree law titled "On the Special Social Security Regime for Workers Individually Contracted to Work Abroad" established a special social security regime for workers residing in Cuba who independently contract to work outside the national territory.
These decrees aim to reorganize "issues with greater impact on the population, such as those affecting the reactivation of productive capacities and the generation of foreign currency income for the country," according to the official announcement.
The demographic dynamics in Cuba reflect the impact of the economic and migratory crisis on a society that is losing its young population while its elderly population grows amid inflation and increasing extreme poverty.
Currently, the elderly are the only population group growing in Cuba.
Impact of the Dissolution of the National Social Security Institute in Cuba
To provide more clarity on the recent changes to Cuba's social security system, here are some frequently asked questions and their answers.
Why was the National Social Security Institute dissolved?
The Cuban government dissolved the National Social Security Institute as part of a broader effort to reorganize social security functions and address the severe economic crisis.
Who will manage social security functions now?
The Ministry of Labor will take over the management of social security functions, with provincial tasks being handled by the respective provincial labor and social security departments.
What are the main challenges facing Cuba's social security system?
Cuba's social security system faces challenges such as insufficient coverage for residents' needs, an aging population, and the economic impact of an active population exodus.