Officials blamed a lapse in a monthly payroll payment from Qatar, a vital aid contributor to the impoverished Palestinian enclave, in part for the Gaza Strip’s Hamas rulers’ inability to pay salaries for 50,000 public sector employees.
Unusual amounts of criticism, especially from some of Hamas’ own employees, have been directed towards Gaza’s salary crisis on social media. Even more challenging conditions resulted from a decline in tax collection and an increase in spending.
Most of Gaza’s 2.3 million residents live in poverty, and the economy is dependent on foreign aid. Qatar has paid hundreds of millions of dollars since 2014 for construction projects. It currently pays $30 million per month in stipends for families, fuel for electricity, and to help pay public sector wages.
Hamas officials say no salary aid has been received since just over half of a $5-million grant to support the May payroll. The reason for the delay was not clear.
In Doha, Qatar’s International Media Office did not immediately respond to a request for comment.
“The government is going through a stifling and escalating financial crisis, with a continuous increase in the deficit month after month, which led to the delay of salaries this month,” Awni Al-Basha, the Hamas-appointed deputy minister, told Hamas Aqsa radio.
“We are making significant efforts to pay the salaries, and we hope to do so at the end of this week,” he said.
Monthly payroll costs Hamas 125 million shekels ($34.5 million) per month, said Basha.
On Sunday, Salama Marouf, chairman of the Hamas government media office, said there has also been an increase in spending, particularly for the ministry of health and repayment of bank debts. He called on Qatar to increase the salary grant to $7 million.
Gaza has been under an Israel-Egyptian blockade since 2007 when Hamas, which opposes peace with Israel, took control. Public sector employees have not received full salaries since 2013.
“With 60% (of salaries) we used to meet the basics of our needs at home. What happens when the salary is completely cut off?” said Mahmoud Al-Farra, an employee at the Hamas government media office. “This a big disappointment.”
Some took to social media, questioning whether the crisis was authentic.
“Where are the taxes they collect and the grants that enter Gaza go?” one resident posted on Facebook.