Regulatory Alerts2026-01-01
Added · Updated
Circular No. (5): Disbursement of a portion of public sector employee salaries
The Palestine Monetary Authority issued Circular No. 05/2026 to all banks operating in Palestine, regulating the repayment of bank facilities for public sector employees. This directive comes after the Ministry of Finance disbursed only 60% of public sector salaries for October 2025. Banks are instructed that for employees receiving a partial salary, the deduction rate for facilities must not exceed 25% of the transferred amount, while for those receiving a full salary, existing instructions apply.
[Palestine Monetary Authority Logo] Palestine Monetary Authority PALESTINE MONETARY AUTHORITY
Circular No. (05/2026) To all banks operating in Palestine Date: Monday, January 12, 2026
Subject: Disbursement of a portion of public sector employee salaries
Given that the Ministry of Finance has disbursed 60% of the public sector employee salaries for October 2025, and out of the Palestine Monetary Authority's keenness to regulate the process of repaying bank facilities granted to public sector employees, banks are requested to do the following:
- The deduction rate shall not exceed 25% of the transferred payment in the payroll statement for public sector employees, for employees whose accounts received a portion of their salary.
- As for employees whose accounts received a full salary, the current instructions in this regard shall apply.
Supervision Group Palestine Monetary Authority
[Signature]
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