Even 60% is Not Guaranteed: 172,000 Palestinian Employees on the Edge of Collapse... Time is Running Out

When the Palestinian Minister of Finance states that 2026 will be the most difficult year since the establishment of the authority and that salaries paid at 60% may not be guaranteed, this is not just a casual statement in a press conference but a real warning that affects the lives of hundreds of thousands of families. Behind this percentage, about 172,000 civilian and military employees stand, facing not only financial delays but also an ongoing daily anxiety about the unknown: How will they pay their installments? How will they pay their bills? How will life continue when the salary shifts from a fixed right to a deferred possibility? And who ensures the continued operation of ministries, embassies, and authorities?

The Palestinian employee has never been the cause of the crisis, yet he bears its largest burden. He is required to fulfill all his legal and financial obligations fully while only receiving a portion of his income. Banks demand their installments, service companies seek their bills, and laws require their fees, as if his salary had not been touched, while the citizen finds himself trapped between his commitments on one side and a government unable to fulfill its promises on the other, in an unjust equation that cannot last long without deep social and psychological effects.

It is true that part of the problem is internal and relates to years of weak administrative efficiency, bureaucratic inflation, and appointments not always based on experience and competence, as if the government does not care to address the crisis. Alongside this, there is redundancy among institutions and wasteful expenses, as well as high privileges that do not fit the treasury's reality.
However, reducing the crisis to mismanagement alone overlooks the broader picture, as the Palestinian economy operates in a distorted and constrained environment, where public revenues largely depend on clearance funds controlled by Israel. These funds were completely halted, and Israel deducts from them as it wishes according to political calculations, while trade movement, borders, and crossings are subject to restrictions that limit investment and weaken local production, making any political tremor instantly turn into a suffocating financial crisis.

Moreover, the devastating war on the Gaza Strip has added an enormous burden that cannot be ignored. The destruction that has affected hospitals, schools, universities, roads, and water, electricity, and sewage networks does not only represent a humanitarian tragedy but also an immense bill for reconstruction that will require many years and billions of dollars. At the same time, there is no actual control over tax or customs revenues from the sector, meaning a lack of income against a backdrop of growing liabilities. Thus, the authority finds itself faced with a harsh equation: a moral and national responsibility to rebuild what has been destroyed against a treasury that is already unable to pay salaries in full. Therefore, the salary crisis is not merely an accounting malfunction or temporary liquidity shortage but a direct result of an economic structure living under the pressure of occupation, siege, and repeated wars, making financial stability inherently fragile.

Yet, the difficulty of the circumstances does not mean the absence of options; as has been said, there are real spaces for reform if the will exists. We can start by investing in accumulated national experiences.

We do not want an employee counting work hours but rather a committed fighter who innovates, endures, advances the ranks, and bears the cost of his bold decisions that serve his people. Instead of expanding costly and non-productive appointments, we can benefit from retired competencies through flexible contracts that bridge gaps in education and health without additional burdens. Full financial transparency can become a rescue tool by publishing detailed public expenditures and enabling citizens to monitor spending areas since what is revealed to the public is difficult to waste. Additionally, protecting the employee from the debt spiral can be achieved through fair offset mechanisms that deduct basic obligations against entitlements so that salary shortfall does not lead to legal crises or deprivation of basic services for his family, such as electricity and water, university fees, bounced checks, car licensing, and government fees.

Restructuring the administrative apparatus has become a necessity, not a luxury, by merging similar institutions, halting unnecessary appointments, and reducing high-grade privileges before touching the salaries of lower categories, while directing resources toward real priorities: salaries, health, and education. At the same time, institutions for oversight and anti-corruption should be empowered to operate with complete independence to recover stolen funds and hold any official accountable, as financial justice is a prerequisite for restoring public trust.

However, cutting expenses alone is not enough; real reform also begins on the revenue side by expanding the tax base fairly, combating significant tax evasion, digitizing collection, and encouraging local production instead of excessive reliance on imports. Furthermore, diversifying revenue sources is no longer a delayed option, as the digital economy, remote work, software companies, modern agriculture, solar energy, and small industries can create jobs and bring in hard currency without imposing new burdens on the budget. Conversely, we must avoid hasty solutions that may seem easy but are destructive, such as total nationalization or random sale of strategic assets or shaking the banking system with unstudied decisions, as these steps could deepen the crisis instead of resolving it.

In conclusion, the issue is no longer just about delayed salaries or a reduced percentage but about trust between the citizen and his institutions or a total collapse of the national authority. When an employee loses job security, the community loses its stability, and when salaries are disrupted, markets, schools, and hospitals shut down together. Saving employee salaries is not a privilege for a category but rather a protection for the national economy, social peace, and the future of the entire national project. Time does not permit further procrastination, and decisions made today will determine whether we are heading toward a gradual recovery that rebuilds the state on the foundations of efficiency and justice or toward a slow collapse in which services and trust erode year after year. The Palestinian employee has never been the problem, but he could be the first victim of its neglect, and if the employee falls, all state institutions will fall with him.