Ramallah: The Palestinian Ministry of Finance announced on Saturday that public sector employees will receive only 50% of their July 2025 salaries tomorrow, with a minimum payment of 2,000 shekels (about $611). In an official statement, the ministry confirmed that outstanding salary arrears remain the responsibility of the government and will be paid once financial conditions permit.
According to Palestine News and Information Agency - WAFA, the Palestinian government has been facing a severe and prolonged fiscal crisis, primarily due to Israel's continued withholding of Palestinian tax revenues. These funds, which Israel collects on behalf of the Palestinian Authority (PA) under the 1994 Paris Protocol, constitute approximately two-thirds of the PA's total revenue.
Hardcore Israeli Finance Minister Bezalel Smotrich has imposed increasingly punitive measures against the PA in recent months. Since June 2025, he has moved to withhold the entire amount of tax revenues due to the PA, rather than partial deductions as in previous years. This has further crippled the Palestinian government's ability to meet its financial obligations, including the payment of public sector salaries.
The financial 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, while essential services continue to deteriorate across the country.