Ramallah: The Palestinian Ministry of Finance announced on Sunday that public sector employees will receive 50% of their June 2025 salaries today, with a minimum payment of 2,000 shekels (about $595).
According to Palestine News and Information Agency – WAFA, the ministry said outstanding salary arrears remain the responsibility of the government and will be paid once financial conditions permit.
The ministry linked the payment reduction to a fiscal crisis caused by Israel’s withholding of Palestinian tax revenues. Those revenues are funds Israel collects on behalf of the Palestinian Authority under the 1994 Paris Protocol and account for about two-thirds of PA revenue.
Israeli Finance Minister Bezalel Smotrich has taken measures to withhold tax revenues. Since June 2025, Smotrich has withheld the amounts due to the PA rather than applying partial deductions used in earlier months. That change has reduced the Palestinian government’s ability to meet financial obligations, including salary payments.
Palestinian officials described the withholding as economic warfare and collective punishment and warned it would affect public institutions and social stability.
The United Nations and the European Union urged Israel to release the funds and respect agreements signed under the Paris Protocol.
The shortfall has left tens of thousands of Palestinian public servants, including teachers, healthcare workers, security personnel and civil servants, facing months of reduced or delayed wages. Services across the West Bank have deteriorated as a result.
The ministry statement confirmed that payments made today do not clear arrears and that the government will pay outstanding amounts when financial conditions allow.
