RAMALLAH, September 7, 2025 (WAFA) – 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).

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.

The Palestinian government has been facing a severe and prolonged fiscal crisis, primarily due to Israel’s continued withholding of Palestinian tax revenues — funds that Israel collects on the behalf of the Palestinian Authority (PA) under the 1994 Paris Protocol and which constitute approximately two-thirds of the PA’s total revenue.

Ultranationalist Israeli Finance Minister Bezalel Smotrich has imposed increasingly punitive measures against the PA in recent months. Since June 2025, Smotrich has moved to withhold the entire amount of tax revenues due to the PA, rather than partial deductions as in previous months. This escalation has further crippled the Palestinian government's ability to meet its financial obligations, including the payment of public sector salaries.

Palestinian officials have condemned the move as a form of economic warfare and collective punishment, warning of its impact on public institutions and social stability. Several international actors, including the United Nations and the European Union, have urged Israel to release the funds and respect previously signed agreements.

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 West Bank.

M.N