In the midst of ongoing conflict, Hamas has continued to pay salaries to around 30,000 civil servants through a covert cash-based system, totaling approximately $7 million despite severe economic strain. Civil servants, according to reports, have been receiving just over 20% of their pre-war salary every 10 weeks, leading to rising frustration as inflation skyrockets — with items like flour hitting record prices.
With no functioning banking system in Gaza, the collection process for these payments is perilous. Employees receive discreet messages instructing them to meet at specific locations for payment. A civil servant shared the fear that comes with each salary pickup, aware that Israeli strikes may target those distribution points.
One teacher revealed that he was handed tattered banknotes which were largely unusable, forcing him to rely on food aid to feed his family. Despite losing key financial leaders and the destruction of much of its infrastructure, Hamas is believed to have stockpiled significant cash reserves before the current war.
Hamas traditionally relied on taxes and support from countries like Qatar, as well as inflated prices on goods, to fund its operations. However, this has led to accusations from Gaza residents that aid is being selectively distributed, fueling public discontent regarding the inequitable access to essential resources amid the crisis.
