The Palestinian Ministry of Finance said that it will pay 70% of the salaries of Palestinian Authority employees in the civil and military sectors for last June today, Thursday, amid its ongoing financial crisis.
The ministry said in a statement that “employees’ salaries for the month of June will be disbursed this evening, Thursday, at ATMs and on Sunday at banks, at a rate of no less than 70% and a minimum of 3,000 shekels ($791.63).”
Full salaries
The statement added, “With this equation, more than 50% of employees will receive their full salaries, and they are employees whose salaries do not exceed 3,000 shekels ($791.63).”
She added, “The remaining outstanding dues to date are owed to the employees, and will be disbursed when financial capabilities allow.”
The Palestinian Authority relies mainly on tax revenues to cover the salaries of its employees and its operating expenses, and the largest part of these funds is collected by Israel on behalf of the Authority.
Israel collects tax money on goods passing through it to the Palestinian market in exchange for a 3% commission, given that it controls all the crossings linking the West Bank to the outside world.
Delayed salaries
The past years have witnessed delays in the transfer of tax funds, which has led to the Palestinian Authority’s inability to meet its financial obligations, whether to its employees or to private sector suppliers.
The Palestinian Authority says the total amount of clearance funds withheld by Israel has reached 6 billion shekels ($1.58 billion).
Last year, Israel decided to withhold the amount of money paid by the Palestinian Authority to the families of those killed in confrontations with Israel and to Palestinian detainees, and demanded that the Palestinian Authority not pay them any money.
The Palestinian Ministry of Finance did not explain in its statement how it was able to collect this amount, which enabled it to pay 70% of its employees’ salaries.
