Cuba raises social security, says wages must wait

By Marc Frank

HAVANA (Reuters) - Cuba said on Sunday it could not afford to increase wages for government workers, but it would raise social security payments.

About 90 percent of the Cuban economy is controlled by the state, which employs the vast majority of people and provides all pensions through the social security system.

May 1, International Workers Day, is a major holiday in Communist Cuba and expectations were high among health and education employees that state wages would be increased to mark the date.

The expectations were fueled by an announcement in local media this month, which said Cuba was revamping the state wage system to create more incentive by allowing workers to earn as much as they can.

But a government statement published on Sunday by all state media made it clear that some wage earners would have to wait for better economic times.

"It is not possible right now to increase salaries of all sectors, because the country does not have the resources necessary," the statement said.

"Increases will be granted by sector and priority, always after a rigorous evaluation of the economic and financial conditions."

However, judges, court personnel and employees in the district attorney offices will receive raises, the statement said.