Cuba has announced an increase in government salaries for workers with advanced university degrees, municipal and provincial employees, and those certified as masters of their trades or otherwise noted for their productivity.

The pay hike is designed to help those who were not affected by a minimum wage hike in May.

Retirement and social assistance pensions were also raised.

In a speech last week, Cuban President Fidel Castro indicated pay increases may be needed to battle corruption.

At the same time, Cuba announced a steep increase in utility rates for heavy users of electricity. The heavily subsidized rates Cubans now pay for the first 100 kilowatt hours will stay the same, but after that, rates increase to up to three times their former rates for the heaviest users.

Granma, the Cuban Communist Party newspaper, said the increase was to encourage energy conservation among Cubans.

Some information for this story provided by AP and Reuters.