Cuba EOR & PEO

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Hire in Cuba

Hiring in Cuba can open up exciting opportunities for your business. This Caribbean island nation has a population of just over 11 million people and provides a blend of skilled labor and a unique cultural heritage. Cuba’s economy is mainly run by industries like tourism, healthcare, biotechnology, and agriculture. The country is well-known for its high literacy rate, with a strong emphasis on education and professional training.

Cuba’s geographic location in the Caribbean makes it a gateway to both North and South American markets. Recent economic reforms and the gradual opening of the Cuban market have made it an attractive destination for new foreign investment. According to recent reports, Cuba is experiencing growth in sectors like renewable energy and technology, which means numerous opportunities for businesses that are looking to expand.

Understanding the local labor market and the legal landscape in Cuba can often be a challenge. That’s why partnering with a Cuba Employer of Record (EOR) can simplify this process, and can help ensure compliance with local regulations and help you tap into the local talent pool. An EOR handles the administrative and legal aspects of hiring, so you can focus on growing your business and taking care of your customers.

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hire employees in Cuba

What Is a Cuba EOR?

A Cuba Employer of Record is a third-party company that manages the legal and administrative responsibilities of employing workers in Cuba for your business. This means they handle payroll, taxes, benefits, and ensure compliance with local labor laws. The EOR becomes the official employer for your staff in Cuba, even though they work directly for you. This arrangement makes the process of hiring and managing employees a lot easier and allows you to focus on your main business activities without worrying about the hassles of local employment regulations.

The terms “Employer of Record” and “Professional Employer Organization” (PEO) are often used interchangeably and mean the same thing. Both refer to companies that take over HR tasks and legal responsibilities for other businesses. By partnering with an EOR or PEO, you can make your hiring process simpler and ensure that you comply with all of the local Cuban laws, making it easier to manage your workforce in Cuba.

Save Money And Time with A Cuba EOR

What Are the Benefits of a Cuba EOR?

Using a Cuba Employer of Record offers many benefits that make expanding your business into Cuba much easier. Here are some of the main advantages you can expect:

Legal compliance made simple: An EOR handles all the legal and regulatory requirements for employing people in Cuba. They stay up-to-date with local labor laws, ensuring your business complies with all regulations. This means you don’t have to worry about understanding Cuban employment laws, which reduces the risk of legal issues and fines.
Quick and easy hiring: An EOR allows you to hire employees quickly without the need to set up a local entity. You find the right candidates, and the EOR takes care of the rest, including contracts and onboarding. This speeds up the hiring process and helps you get your team up and running in no time.
Efficient payroll management: Managing payroll can be challenging, especially in a foreign country like Cuba. An EOR handles all payroll tasks, ensuring your employees are paid accurately and on time. They manage salary calculations, tax withholdings, and any other necessary deductions, so you don’t have to worry about the details.
Comprehensive benefits administration: Offering competitive benefits is important in order to attract and retain the top Cuban top talent. An EOR administers employee benefits such as health insurance and retirement plans. They handle enrollment, contributions, and any issues that may come up, making sure your employees receive the benefits they are entitled to.
Focus on your core business: By outsourcing HR and administrative tasks to an EOR, you can focus on what you do best – managing and growing your business. The EOR takes care of all the employment-related details, freeing up your time and resources to concentrate on more important things.
Reduced risk: An EOR reduces the risk associated with employment. They handle compliance with local laws and manage employment contracts, minimizing the chance of disputes and legal problems. This protection allows you to operate with more peace of mind.

Horizons is Best IN Class

Why Choose Horizons?

Horizons stands out as a Cuba EOR through:

A strong regional presence in North America, meaning senior management are on the ground to deal with any issues.
Client-focused infrastructure. Horizons won’t oversell you on products and services you don’t need. Horizons offers the easiest platform to compliantly hire and pay people worldwide.
Cost-effective solutions. At $499 per employee, per month, no EOR in Cuba is more affordable. The cost is 100% transparent (onboarding, offboarding, deposit, no extra charges).
A customer-first culture. Horizons is an efficient bootstrapped company. It is not an externally-funded company burning investor cash to aggressively acquire new clients. Horizons is the only EOR that grows with its customer, reflecting the level of care and personal attention provided to each customer. Horizons will carefully advise on the best setup in each country: the type of contract needed, how to structure your benefits, and how to offboard a person while minimizing the risk of conflicts and extra cost
A long-term partnership. Horizons is the only EOR platform with a recruitment arm — a direct response to client demand. If any employee is leaving, or if our clients want to explore a new country, Horizons can recruit new candidates directly for the client. Horizons is:
- The only EOR doing this in-house — no subcontracting
- The only EOR doing this without a retainer — clients are only charged upon success
- The only EOR charging just a 2% fee per month.

Step-by-step Cuba EOR

How Does a Cuba EOR Work?

Hire your employees: A Cuba Employer of Record makes hiring easy for your business. You choose the employees you want to hire, and the EOR handles all of the legal paperwork. They officially employ the workers, but your employees work directly for you. This setup allows you to quickly add new team members without having to establish a local entity. It’s a seamless way to bring on talent and get your operations running smoothly in Cuba.
Manage employment contracts and onboarding: The EOR takes care of all employment contracts, ensuring they meet Cuban legal standards. They draft, review, and finalize contracts, so everything is clear and compliant. Additionally, the EOR handles the onboarding process, making sure new hires have all the necessary documents and understand what their roles will be. This helps new employees start their jobs without any hitches and ensures they are well-prepared from day one.
Process payroll and handle employment taxes: Handling payroll can be tricky, especially in a different country. An EOR manages payroll for you, making sure employees are paid accurately and on time. They take care of salary calculations, tax withholdings, and any other necessary deductions. The EOR ensures that all payments comply with Cuban tax laws, taking away your stress and ensuring that your payroll process is smooth and error-free.
Administer benefits: The EOR also manages employee benefits, such as health insurance and retirement plans. They handle the enrollment process, manage contributions, and ensure that employees receive the benefits they are entitled to. This makes it easier for you to offer attractive benefits packages that help you keep your team happy and motivated. The EOR deals with any benefit-related questions or issues and provides comprehensive support to your employees.
Take care of exit procedures: When an employee leaves, the EOR handles the entire exit process. This includes managing all the necessary paperwork and ensuring compliance with Cuban laws regarding termination and severance pay. The EOR processes final paychecks, manages the notice periods, and handles severance pay if applicable. They also make sure that any company property is returned and that any post-employment obligations are clearly defined. This careful handling of exit procedures helps protect your business and ensures a smooth transition for any departing employees.

stay compliant with Cuba labor laws

Labor Laws

One of the principal reasons for engaging an EOR in Cuba is to ensure full compliance with Cuba’s employment laws. Here we explain in detail how a Cuba EOR ensures:

Compliance with Cuba employment contract requirements
Compliance with working hours, national holiday provisions, and Cuba social security requirements.

Employment contract types

In Cuba, employment contracts can be either permanent or fixed-term. Permanent contracts are for ongoing roles with no set end date, providing long-term job security and benefits like health insurance and retirement plans. Fixed-term contracts are for a specific period or project, with a set start and end date. These contracts might be used for seasonal work or special projects and usually do not offer the same benefits as permanent contracts. Both types of contracts must comply with Cuban labor laws to ensure the protection of both employees and employers.

Project-based

Fixed-term

Indefinite

Working hours in Cuba

Standard working hours in Cuba are generally 44 hours per week, typically spread over five days. Most businesses operate from Monday to Friday, however certain industries like healthcare and education may require employees to work on weekends or work longer hours during the week.The maximum overtime hours that are allowed in Cuba is 12 hours per week or 200 hours per year.

Overtime must be compensated in the following way:

Holiday Schedule in Cuba [2024]

In 2024, Cuba will observe several public holidays. Employees are usually entitled to these days off with pay. If employees are required to work on a public holiday, they must be compensated at a higher rate, often double their regular pay. These holidays provide a chance for workers to rest and celebrate important national events.

Date	Holiday name
1 Jan, 2024	New Year’s Day
2 Jan, 2024	Cictory Day
29 Mar, 2024	Good Friday
1 May, 2024	Labor Day
25 Jul, 2024	Conmemoración del asalto a Moncada
26 Jul, 2024	Día de la Rebeldía Nacional
27 Jul, 2024	Conmemoración del asalto a Moncada
10 Oct, 2024	Independence Day
25 Dec, 2024	Christmas Day
31 Dec, 2024	New Year’s Eve

Paid time off

Employees in Cuba are entitled to paid time off, which includes vacation leave, public holidays, and other forms of leave. Full-time employees typically earn a minimum of 15 days of paid vacation per year. PTO policies should be clearly outlined in the employment contract, detailing how leave is accrued and the process for requesting time off. Offering additional PTO can be a valuable perk that helps attract and retain employees, contributing to their overall job satisfaction and productivity.

Sick leave in Cuba

Sick leave in Cuba allows employees to take time off when they are ill without losing pay. Full-time employees are generally entitled to a minimum of 30 days of paid sick leave per year. Clear sick leave policies should be included in the employment contract, outlining the procedures for notification and documentation. This ensures that employees can recover without worrying about financial loss.

Less than 6 months of sick leave:

(percentage of regular wages owed to the employee)

Over 6 months of sick leave

In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.

Maternity leave in Cuba

Female employees are entitled to a total of 18 weeks of maternity leave. During maternity leave, employees are generally paid their full salary. The payment is typically provided by the employer, who is reimbursed by the state social security system.

Paternity leave is generally shorter than maternity leave. Fathers are entitled to 5 days of paternity leave around the time of the birth. Paternity leave is granted to fathers who are legally recognized as the child’s father, and the leave is intended to support the mother and bond with the newborn.

Annual leave in Cuba

Annual leave in Cuba provides employees with time off to rest. Full-time employees are entitled to a minimum of 18 days of paid annual leave each year. Employers can choose to offer more, but 18 days is the standard minimum. Annual leave should be scheduled in advance and mutually agreed upon by both the employer and employee. This time off is essential for maintaining a healthy work-life balance and ensuring employees return to work refreshed and productive.

Termination & severance in Cuba

Termination of employment in Cuba must follow specific legal procedures to ensure fairness. Employers must provide notice or payment in lieu of notice, with the notice period depending on the employee’s length of service. For employees with less than one year of service, the notice period is typically one week. For those with longer service, the notice period increases. Severance pay is required for employees terminated without cause, generally amounting to one month’s pay for each year of service. Employers must also provide a written reason for termination and follow due process to protect the rights of employees.

Cuba's compulsory social security contributions

Social security are mandatory payments made by both employers and employees to fund various social welfare benefits, including pensions, sickness benefits, maternity benefits, and more. The total contribution rate is 17% of the employee’s gross salary.

Cuba social security for foreigners

Foreign workers who contribute to the social security system are eligible for the same benefits as Cuban workers, including pensions, sickness benefits, maternity benefits, and invalidity benefits, subject to the contribution and eligibility requirements.

Individual income tax

Cuba does not impose personal income tax on individuals. This means that salaries, wages, and other forms of personal income are not subject to income tax.

Health insurance

Cuba provides universal health care to all its residents. The public health care system is funded by the government and provides a range of services, including primary care, specialist care, emergency services, and hospitalization. Most healthcare services are free or very low-cost at the point of service for Cuban residents, including visits to doctors, hospital stays, and medications.

Although the public health system provides extensive coverage, some expatriates and locals may opt for private health insurance to access private clinics and hospitals, which might offer shorter waiting times and additional amenities.

hassle-free Cuban compensation & benefits

Compensation & Benefits

Cuba compensation laws

The government in Cuba sets minimum wage rates that vary by industry. The average minimum wage is 225 Cuban pesos per month. Employers are required to pay their employees regularly, typically on a monthly basis.

13 month salary in Cuba

Unlike some countries, Cuba does not typically have a practice of paying a 13th month salary. Instead, bonuses or additional compensation are often performance-based and can vary from one company to another. These bonuses are not mandated by law but can be offered by employers to reward and motivate their employees.

Social security for Cuban nationals

In Cuba, social security contributions are mandatory for both employers and employees. These contributions fund various social benefits, including pensions, healthcare, and unemployment insurance. The social insurance contributions can range from between 2.5% and 5% depending on the employees monthly income.

Cuba Employer Of Record Peo

Navigation

Hire in Cuba

What Is a Cuba EOR?

What Are the Benefits of a Cuba EOR?

Why Choose Horizons?

How Does a Cuba EOR Work?

Labor Laws

Employment contract types

Working hours in Cuba

Compensation & Benefits

Frequently asked questions

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Frequently asked questions

How does an EOR in Cuba manage compliance with local labor laws?

An Employer of Record in Cuba ensures compliance with local labor laws by handling all legal and administrative responsibilities related to employment. They manage employment contracts, payroll, taxes, and benefits according to Cuban regulations. The EOR stays updated on any changes in the law, ensuring that your business remains compliant without you needing to worry about the details. This means you can operate smoothly and legally, avoiding any potential fines or legal hassles.

What are the benefits of using an EOR for hiring in Cuba?

Using an EOR for hiring in Cuba offers several different benefits. It simplifies the hiring process, allowing you to quickly bring on local talent without setting up a local entity. The EOR handles all the administrative tasks, like payroll, taxes, and benefits, so you can focus on running your business. An EOR also ensures that you comply with local labor laws, minimizing the risk of legal problems. This makes expanding your team in Cuba easy and stress-free, letting you concentrate on growing your business.

Cuba EOR & PEO

Start hiring in Cuba

Simple, compliant hiring with Horizons EOR & PEO

Hire in Cuba

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EOR Platform

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Contracts

Local benefits

180+ Countries

hire employees in Cuba

What Is a Cuba EOR?

Save Money And Time with A Cuba EOR

What Are the Benefits of a Cuba EOR?

Horizons is Best IN Class

Why Choose Horizons?

Step-by-step Cuba EOR

How Does a Cuba EOR Work?

stay compliant with Cuba labor laws

Labor Laws

Employment contract types

Project-based

Probationary period

Termination

Severance

Fixed-term

Probationary period

Termination notice period

Severance

Indefinite

Probationary period

Termination notice period

Severance

Working hours in Cuba

Overtime must be compensated in the following way:

For a regular workday:

For a rest day:

For a statutory holiday:

Paid time off

Under 1 year of employment

1-10 years of employment

10-20 years of employment

20+ years of employment

Sick leave in Cuba

Less than 6 months of sick leave:

Under 1 year of employment

1-10 years of employment

10-20 years of employment

20+ years of employment

Over 6 months of sick leave

Under 1 year of employment

1-3 years of employment

3+ years of employment

Maternity leave in Cuba

Annual leave in Cuba

Termination & severance in Cuba

Cuba's compulsory social security contributions

Cuba social security for foreigners

Individual income tax

Health insurance

hassle-free Cuban compensation & benefits

Compensation & Benefits

Cuba compensation laws

13 month salary in Cuba

Social security for Cuban nationals

Hire in Cuba in 24h without your own local entity.

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