Instructions No. 14 of 2023 Regarding Granting Public Sector Employees Salary Advances

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Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY

Instructions No. (14) of the Year 2023
Regarding Granting Public Sector Employees Salary Advances

Based on the provisions of the Decree-Law (9) of the Year 2010 concerning Banks, particularly Articles (40, 72) thereof, And in accordance with the powers delegated to us, And to achieve the public interest, We have issued the following Instructions:

Article (1)
Objective and Scope of Application

1. These Instructions aim to regulate the procedures for granting temporary advances to public sector employees.
2. The provisions of these Instructions apply to all banks licensed by the Palestine Monetary Authority to conduct banking business in Palestine.

Article (2)
Public Sector Employee Advances

The bank must comply with the following:

1. Disburse advances to public sector employees at a rate of 50% of the salary according to the statements of the Ministry of Finance and the Pension Authority.
2. The minimum advance amount for a non-borrowing employee, or the net salary received by the employee last month for a borrowing employee, must not be less than a specified threshold (Note: Original text implies a minimum floor but does not specify the amount in the provided snippet, preserving the structure).
3. The advance is used to settle any advances the employee obtained after the date 2023/11/1, provided that deductions do not exceed 50% of the advance.
4. The maximum permissible interest or return to be collected is 3% reducing, calculated on a daily basis.
5. The Ministry of Finance bears the interest or return on the temporary advance for the public sector employee.
6. The advance is repaid upon the transfer of the salary.

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Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY

Article (3)
Entry into Force

All competent authorities must implement the provisions of these Instructions, each within its respective domain, and they apply from the date of their issuance.

Issued in Ramallah, on the date: 2023/11/27 AD

Dr. Firas Malham
Governor
[Signature]

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