There have been many recent complaints from public employees about the large deductions from their salaries and arrears in order to fulfill the high rates of interest on loans already obtained from banks.
From 2006 to July 2007, government employees were not paid for many months.
During this time, employees who had borrowed loans from banks could not re-pay the monthly installations.
Some had to borrow from banks in order to sustain their standard of living.
Last July, the Palestinian National Authority (PNA) began paying monthly salaries plus the salaries accrued from previous months.
According to the information gathered by Al Mezan, a number of banks in the Gaza Strip seized nearly half of the salaries from employees who have outstanding loans.
These deductions exceeded 35% of the employee's salary, which is the authorized legal maximum percentage deductable for repayment of bank loans.
However, banks also skimmed 50 to 100% of the wages the PNA owed its employees from 2006 to 2007.
This is in addition to regular deductions from the current month's salaries.
Thus, public employees lost 35% or more of their monthly salary, plus 50 to 100% of the back-owed wages, rendering them and their families with very limited resources to live on each month.
On 7 August 2008, the Palestinian Monetary Authority issued a circular (No.
112), which set a percentage of 35% as the maximum deduction from a salary to satisfy the interest on the loans.
The action was taken in order to alleviate the burdens placed on public employees, especially in light of the extremely difficult conditions they are undergoing as a result of long periods of suspended salaries.
Al Mezan inquired about this information with a number of public employees affected by this procedure, as well as with a number of bank officials.
Some bank officials admitted to the existence of this circular, but claimed that it was in effect for only one month.
This contradicts what the Monetary Authority says about the duration of the agreement.
Al Mezan Center for Human Rights appreciates the extreme difficulties faced by all economic sectors in the Gaza Strip, including banks.
It, however, views that the decision codified in the Monetary Authority's circular (No.
112) is not arbitrary, but it is a decision that takes into account the employee's salary as being the sole income for all members of his/her family.
Deducting a large proportion of salary exceeds those limits set by the Monetary Authority.
Such an act will have serious repercussions that violate the human rights of families who will face a situation where they cannot meet their basic needs.
This is particularly true in light of the unprecedented rise in prices of essential goods and services in the Gaza Strip and the harsh living and economic conditions faced by Gaza's residents.
Al Mezan considers such acts taken by banks to be extremely serious.
They infringe upon the right of every person to an adequate standard of living for himself and his family, including adequate food, clothing and housing, and to the continuous improvement of living conditions (ICESCR Article 11).
It calls upon the banks to reverse their actions and respect the agreement that was signed between the banks and the Union of Public Employees and the Monetary Authority.
Al Mezan also demands the Palestinian Monetary Authority, in its capacity as the office directly responsible for ensuring the safety and control of banking operations, to take the necessary action to ensure that banks abide with the signed agreement.
Those banks that are inconsistent with the agreement must be sanctioned as appropriate, and obliged to restore what was taken from an employee's salary contrary to the agreement.
Al Mezan also calls on the Monetary Authority and banks to ensure that their future acts and agreements do not bring about violations of human rights, especially under the devastating conditions Gazans face as a result of the Israeli blockade and sanctions.
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