Palestine – The Palestinian government announced, yesterday, Tuesday, the payment of deficient wages to its employees for the month of last August and a delay of a whole month, coinciding with its suffering from the worst financial crisis it is exposed to.
This came in a statement issued by the Palestinian Ministry of Finance, in which it said that it would pay the salaries of its employees on Wednesday at a rate of 70 percent of the salary, with a minimum of 3,500 shekels ($920).
The ministry stated: “With this equation, more than 70 percent of employees will receive their full salary, and they are employees whose salaries do not exceed 3,500 shekels.”
She added: “The Ministry confirms that the rest of the dues are owed to the employees and will be disbursed when financial capabilities allow.”
Since November 2021, public employees in Palestine, numbering approximately 146,000, have been receiving reduced wages, due to the government’s inability to provide their entire monthly wage bill.
While the entire public sector wage bill (employees, retirees, semi-salaries such as allowances for prisoners, the wounded, the families of martyrs, and other subsidies) amounts to approximately one billion shekels per month ($266 million).
Since the Israeli war on Gaza in October 2023, Tel Aviv has increased its deductions from Palestinian tax funds (clearance), to a monthly average exceeding 400 million shekels ($109 million).
These deductions increased the difficulty of the Palestinian government’s ability to regularly pay the missing wages, and it became disbursed whenever it had financial liquidity.
These deductions include wages and allowances transferred by the Palestinian Authority to Gaza, allowances for debts that Israel says are owed by the Palestinians to Israeli electricity, water, and hospital companies, and allowances for prisoners of war paid by the Authority.
Anatolia
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Analysis: Delayed Payment of Deficient Wages in Palestine
In a recent development, the Palestinian government has announced the payment of deficient wages to its employees for the month of August, albeit a month late. This delay underscores the financial struggles the Palestinian government faces amidst its ongoing economic challenges.
According to recent reports, the European Union provided a contribution of €25 million to help the Palestinian Authority pay the January salaries and pensions of its civil servants <a href="https://www.eeas.europa.eu/delegations/palestine-occupied-palestinian-territory-west-bank-and-gaza-strip/eu-provides-%E2%82%AC25-million-palestinian-authority-payment-january-salariesen”>[1]. This aid highlights the reliance of the Palestinian Authority on external assistance to meet its financial obligations.
The minimum wage in Palestine is approximately ₪1,880.00 per month, which translates to around $567 USD as of March 2024 [3]. This amount is barely enough to cover the basic needs of an individual, let alone a family. The delay in payment of wages will undoubtedly exacerbate the financial hardship faced by these employees.
Moreover, the average salary in Palestine is not significantly higher than the minimum wage. According to reports, the monthly minimum wage in Palestine is approximately $430 USD [2]. This highlights the limited purchasing power of the average Palestinian citizen, making them highly vulnerable to economic shocks.
The Palestinian government’s announcement to pay the deficient wages, albeit delayed, is a step in the right direction. However, it is essential for the government to address the underlying issues that led to the delay in the first place. This includes finding ways to increase revenue, reduce reliance on external aid, and implementing policies that promote economic growth and job creation.
the delayed payment of deficient wages in Palestine is a symptom of a broader economic crisis. It highlights the need for the Palestinian government to address its financial struggles and implement policies that promote economic stability and growth. The international community, including the European Union, must continue to provide support to the Palestinian Authority while also encouraging efforts to improve the economic prospects of the Palestinian people.
Sources:
<a href="https://www.eeas.europa.eu/delegations/palestine-occupied-palestinian-territory-west-bank-and-gaza-strip/eu-provides-%E2%82%AC25-million-palestinian-authority-payment-january-salariesen”>[1]
