PMA reduces public sector salaries by 50%

The Palestinian Monetary Authority (PMA) on Monday issued an important circular to banks in Palestine, a few hours after the Ministry of Finance announced the date of payment of salaries this month.

The Palestinian Monetary Authority (PMA) demanded that banks operating in Palestine deduct 50% of the salaries of public sector employees.

The PA also called on the Palestinian Monetary Authority to deal with the employees of institutions that receive their budget from the Ministry of Finance and Planning in the same manner as with public sector employees.

This follows irregular salary transfers for public sector employees since late 2018.

In February 2019 and March 2019, the PA also paid only 50% of the salaries of public workers, as a result of Israel’s decision to withhold tax revenues it collects on behalf of the Palestinian Authority (PA).

In mid-February, Israel’s security cabinet decided to withhold around 502,697,00 shekels ($138 million) in tax revenues which are collected on behalf of the PA . This is the amount the PA pays as stipends to the families of Palestinians killed or imprisoned by Israel be deducted from the money Israel hands over to the PA.

The Palestinian Authority (PA) refused to accept the remaining $200 million in tax revenues, demanding the entire amount of the collected tax revenues or none at all, as a form of protest against the Israeli deduction.