Palestine cuts staff pay by half
The Palestinian Authority will pay only half wages this month, Prime Minister Salam Fayyad said yesterday, the second time in three months it has taken such a step because of a financial crisis it blames on donors failing to provide promised funds.
Fayyad announced the half-pay measure at a Cabinet meeting. The Palestinian Authority took the same measure in July. Last month it paid full salaries but said its funding crisis had not been solved.
The Palestinian Authority pays salaries to 150,000 people in the West Bank and the Gaza Strip and monthly allowances to another 75,000 people.
A Palestinian official, speaking on condition of anonymity, said the aid-dependent authority was facing an unprecedented financial squeeze on funding from Arab states which are failing to meet commitments to provide support.
"We do not know why they are imposing this siege on us," the official said.
Fayyad announced the half-pay measure at a Cabinet meeting. The Palestinian Authority took the same measure in July. Last month it paid full salaries but said its funding crisis had not been solved.
The Palestinian Authority pays salaries to 150,000 people in the West Bank and the Gaza Strip and monthly allowances to another 75,000 people.
A Palestinian official, speaking on condition of anonymity, said the aid-dependent authority was facing an unprecedented financial squeeze on funding from Arab states which are failing to meet commitments to provide support.
"We do not know why they are imposing this siege on us," the official said.
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