On April 4, the Finance Ministry in Gaza began disbursing 1,200 shekels ($350) to a number of Palestinian Authority (PA) employees who had not received salaries since January or February. Another group of employees were scheduled to receive a similar amount soon thereafter. Finance Ministry Undersecretary Yousef al-Kayali had announced the payments in a March 31 press release.

The Ramallah-based PA had stopped paying the salaries of 5,000 of its employees in Gaza in January and February, because they work for Hamas-run ministries or because they support Hamas, the Islamic Jihad Movement and dismissed Fatah leader Mohammed Dahlan. The PA has imposed sanctions on Gaza since April 2017 with the aim of pressuring Hamas into relinquishing control of the territory. The measures have included withholding funding for the Health and Education Ministries and reducing the salaries of the 60,000 PA employees in Gaza by 30%. 

Kayali told Al-Monitor, “This step stems from a moral responsibility toward the employees and is aimed at strengthening their steadfastness.” It is the first time that the Hamas government has made payments to PA employees. In the past, PA employees were paid with money budgeted by Ramallah. Hamas-affiliated syndicates in Gaza welcomed news of the payments, claiming that it proves the legitimacy of the Gaza government, and like Kayali's statement, said it reflects a sense of responsibility toward the employees.

The PA’s decision to stop disbursing the salaries of government employees targeted Hamas' ability to provide humanitarian services and increased the movement’s financial and human burdens. It comes as Gaza faces difficult economic conditions that prevent Hamas from collecting taxes. Hamas' ability to collect taxes were negatively affected after the movement handed control of border crossings to the PA in accordance with a reconciliation agreement concluded between Fatah and Hamas in November 2017.