Hire in Cuba

Cuba PEO &

Employer of Record

Hire & manage teams remotely in Cuba without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Cuba EOR PEO

Business Language

Spanish

Salary Currency

Cuban peso (CUP)

Capital city

Havana

Time zone

UTC -4

EOR in Cuba

Cuba EOR PEO

Hire Employees in Cuba

NNRoad provides professional employment organization (PEO) & employer of record (EOR) services in Cuba to ensure that your business complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.

Fast Hiring

Start working with your remote employees in a week.

Foreigner Visas

NNRoad assists with overseas foreign hires visa needs.

Platform

Access your payroll reports on our portal.

Employer of Record in Cuba

Employer of Record (EOR) services are for companies who do not have a legal entity in Cuba, but who want to hire localy. Employment and full liability are outsourced to NNRoad.

1. Candidate Selection

Select the candidates you want to hire in Cuba.

2. Employee Onboarding

We sign a local labor contract with your employees based in Cuba.

3. Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Cuba.

EOR service includes:

Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).

All mandatory employer (and employee) contributions filed and paid for your EOR employees.

Payroll recording, reporting and administration.

Distribution of salaries to employees through direct deposit into their bank accounts.

Calculation, reporting, filing and processing of EOR employee’s individual income tax due.

Collecting and processing your employee’s invoices for business related expenses.

Guiding and organizing your expat employee’s work visa application too guarantee their successful onboarding.

Standalone Payroll & PEO in Cuba

Professional Employment Organization (PEO) services are for companies who have a legal entity in Cuba, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.

Employee Income Taxes:

Individual income tax rates in Cuba are based on progressive tax brackets.

In Cuba, the income tax system for employees operates on an administrative basis. This means that employers are responsible for calculating and withholding the correct amount of income tax from their employees’ salaries before disbursement. Employees themselves do not need to declare their income tax to the government, simplifying their personal tax compliance obligations.

Tax Brackets:

Sample Calculation

Employer Contribution

Employers in Cuba are required to contribute to various social security and labor funds. These contributions include:

  • Social Security: 14% of the employee’s salary.
  • Employment Injury Insurance: 0.5% of the employee’s salary.

    These percentages represent mandatory contributions to ensure employee coverage under Cuba’s social welfare programs.

    Employee Contribution

    Employee contributions in Cuba are also geared towards social security, with a general contribution of around 5% of their gross salary. This contribution ensures that employees are covered for pensions, healthcare, and other social benefits.

    Social Security

    Social Security in Cuba is comprehensive, covering pensions, healthcare, and other benefits. It is supported by contributions from both employers and employees to maintain a broad range of services for the workforce.

  • Pension Fund

    Employees contribute approximately 5% of their salary towards the pension fund, which is complemented by employer contributions, ensuring a stable retirement plan for workers.

    Healthcare Insurance

    Healthcare contributions are integrated into the general social security contributions made by both employers and employees, facilitating access to medical services across the country.

    Working Hours Per Week

    The standard working week in Cuba is 44 hours, typically spread over five to six days. Working beyond these hours requires compliance with the national labor regulations regarding overtime.

    Overtime

    Overtime in Cuba is generally compensated at 150% of the regular hourly wage, ensuring fair compensation for hours worked beyond the standard workweek.

    Termination of employment in Cuba can be legally initiated for various reasons including misconduct, inefficiency, or economic necessities of the company.

    Severance

    Standard severance payment in Cuba typically includes one month’s salary for each year of service, providing support to employees transitioning out of their roles.

    Notice Period

    The required notice period in Cuba for employers to terminate an employee is generally one month. Similarly, employees are expected to give one month’s notice when resigning.

    Employment Contract

    Labor contracts in Cuba must clearly state terms including job description, compensation, working hours, benefits, termination conditions, and any probation period, which can vary but usually does not exceed six months.

    Probation Period

    The maximum legal probation period in Cuba is typically six months, allowing both the employer and employee to assess the suitability of the employment arrangement.

    Annual Leave

    Employees are entitled to at least 24 days of paid annual leave.

    Sick Leave

    Cuban workers can receive paid sick leave, with the duration and payment dependent on the length of service and specific circumstances.

    Maternity Leave

    Maternity leave in Cuba is 18 weeks fully paid, ensuring support for mothers before and after childbirth.

    Paternity Leave

    Paternity leave is granted for 5 days fully paid, supporting fathers in their new parenting responsibilities.

    Public Holidays

    January 1: Triumph of the Revolution
    January 2: Victory Day of Armed Forces
    May 1: International Labor Day
    July 25-27: Day of the National Rebellion
    October 10: Independence Day
    December 25: Christmas Day

    Resources

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