The Cuban Council of State approved a new Decree Law that establishes a new social security regime for workers in the Basic Units of Cooperative Production (UBPC), which will demand greater productivity from these entities and less dependence on the state budget.
The deputy director of the National Institute of Social Security (INASS), Haydeé Franco, explained that the financing for this special regime will be made by the shared contribution of the cooperative member and the cooperative unit, according to Cubadebate.
“Cooperative members are going to contribute 6% of the contribution base selected by them and it is up to the cooperative to contribute 14%, which determines a total contribution of 20%,” said Franco.
The selection of the contribution base must be approved by the general assembly of the UBPC and will be in correspondence with the advances, profits and other income received by the cooperative member, she specified.
📲‼️ Conozca más sobre el Decreto-Ley 5 del Régimen Especial de Seguridad Social de las Cooperativas de las Unidades Básicas de Producción Cooperativa.👇👇https://t.co/2OcVLn71p4
— MTSS CUBA (@MTSS_CUBA) October 27, 2020
Decree Law No. 5 of 2020 establishes that in order to guarantee the social security of workers it is mandatory to join the special regime, for which the cooperative will designate a person who must register its members in the National Registry of Social Security and in the Taxpayers of the National Office of Tax Administration, the source indicated.
The regulation protects cooperative members in cases of illness or accident of common or professional origin, maternity, total disability and old age. In case of death, it protects their family.
The legal director of the Ministry of Labor and Social Security (MTSS), Yudelvis Álvarez, explained in turn that the Decree Law will reduce the State’s participation in financing the social security of these workers, although it will guarantee the resources if necessary, according to the Agencia Cubana de Noticias news agency.
The new legal norm, which will come into force within 180 days, establishes that the calculation of the pension by age is made by the average of the monthly contribution base of the last 15 calendar years, the periods in which the cooperative member had the status of salaried worker, was subject to another regime or was a member of the UBPC prior to the decree, will be taken into account in the contribution, according to the source.
The provisions in Law No. 105 On Social Security of December 27, 2008 establishes that the calculation will be applied to the pensions of cooperative members who reach retirement age in the first five years after the entry into force of the regulations or become completely disabled.