Arab World

Palestinian Authority to Pay 70% of Salaries for Employees

Palestinian Authority to Pay 70% of Salaries for Employees

The Palestinian Ministry of Finance announced that it will pay 70% of the salaries for its employees in the civil and military sectors for the month of June today, Thursday, amid its ongoing financial crisis. The ministry stated in a statement that "salaries for the month of June will be disbursed this evening on ATMs and on Sunday at banks at a minimum of 70%, with a minimum amount of 3,000 shekels (approximately 795 dollars)."

The statement added, "With this calculation, more than 50% of employees will receive their full salaries, specifically those whose salaries do not exceed 3,000 shekels." It continued that "the remaining receivables owed to employees up to this date will be paid when financial capabilities allow."

The Palestinian Authority primarily relies on tax revenues to cover its payroll and operational expenses, with most of this money being collected by Israel on behalf of the Authority. Israel collects tax revenues on goods passing through to the Palestinian market for a fee of three percent, as it controls all crossings linking the West Bank to the outside world.

In recent years, there have been delays in the transfer of these funds, resulting in the Authority's inability to meet its financial obligations to both its employees and private sector suppliers. The Palestinian Authority states that the total amount withheld from clearance funds by Israel has reached six billion shekels.

Last year, Israel decided to withhold the amount of money paid by the Palestinian Authority to families who have lost their children in the Palestinian-Israeli conflict and to Palestinian detainees, demanding that the Palestinian Authority stop disbursing funds to them. The Palestinian Ministry of Finance did not clarify in its statement how it managed to accumulate this amount that enabled it to pay 70% of its employees' salaries.

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