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Inside Hamas’ Secretive Payroll Amid Gaza’s Financial Collapse

In Gaza’s conflict-torn landscape, Hamas pays its civil servants through secretive cash handovers following cryptic texts, reflecting the harsh realities amid financial collapse. With salaries reduced to a fraction and the risk of deadly repercussions, these workers navigate a dangerous maze of survival. This covert system underscores broader issues of governance, funding, and humanitarian challenges in conflict zones.

Inside Hamas’ Secretive Payroll Amid Gaza’s Financial Collapse

How Hamas Pays Its Civil Servants Amidst War and Economic Turmoil

In the heart of Gaza’s turbulent landscape, receiving a salary has become a cloak-and-dagger affair for thousands of civil servants working under Hamas. The ongoing Israel-Gaza conflict and the near-collapse of Gaza’s banking systems have thrust these government employees into a precarious routine — one where salary payments come disguised as mysterious text messages and risky clandestine handovers, according to a recent BBC investigation.

A Cryptic Salary System That Defies the Odds

Imagine being a police officer, a tax official, or a teacher, and instead of receiving your paycheck through a bank deposit or paycheck slip, you get a cryptic text message, sometimes sent harmlessly to your spouse’s phone. The message instructs you to show up at a specific location at a specific time, armed with a secret code phrase like "Meet a friend for tea." Upon arrival, a stranger hands you an envelope full of cash — no questions, no words exchanged — before melting away into the crowded streets of Gaza.

This secretive process, designed to evade detection amid severe restrictions and conflict, highlights the extreme measures Hamas has adopted to maintain a semblance of governance and stability. The BBC report reveals that payments are made roughly every 10 weeks, providing around 30,000 civil servants with just over $7 million (approximately £5.3 million) in total—a mere fraction, around 20-30%, of their pre-war salaries.

Economic Hardship Deepens as Inflation Soars

These paltry payments are coming at a time when the cost of living in Gaza has spiraled dramatically. Basic commodities, such as flour, can cost up to $80 per kilogram, making a reduced salary barely enough to cover essentials. For most families, this financial pinch is suffocating.

Adding to the challenges, the physical cash disbursed is often in poor condition—tattered, old banknotes that local shopkeepers refuse to accept. A schoolteacher, supporting a family of six, shared with the BBC how he received 1,000 shekels (around $300) in worn-out bills, of which only 200 shekels were considered usable. "I honestly don’t know what to do with the rest," he lamented.

Risk and Uncertainty: The Human Cost

Every trip to collect this clandestine salary carries grave risks. One civil servant from Hamas’s Ministry of Religious Affairs poignantly told the BBC, "Every time I go to pick up my salary, I say goodbye to my wife and children. I know that I may not return." This stark reality shows the human toll behind the seemingly simple act of collecting a paycheck.

Funding Hamas: A Complex and Opaque Network

The mechanisms behind how Hamas continues to finance these payments remain shrouded in secrecy. After Israeli forces eliminated Ismail Barhoum, Hamas’s financial chief, in March during a targeted strike, questions have intensified regarding the group’s financial networks.

Historically, Hamas has secured funding through import duties, local taxation, and international aid from countries like Qatar. Its military branch, the Qassam Brigades, receives separate financial support primarily from Iran, operating under a distinct and secretive financial framework. Prior to the October 7, 2023 attacks on Israel, a senior Hamas official disclosed that Hamas had stockpiled approximately $700 million in cash reserves, alongside large sums of shekels hidden in underground tunnels—resources now strained under the weight of ongoing conflict and economic sanctions.

Broader Implications: Governance Amid Crisis

This clandestine salary process is not just about money; it symbolizes the resilience of Hamas’s administrative machinery despite crippling external pressures. It raises critical questions for international policymakers and humanitarian organizations about sustaining civil governance and social services in conflict zones under financial siege.

  • How can governments balance sanctions aimed at militant groups without undermining civilian civil servants reliant on these payments?
  • What humanitarian mechanisms can be deployed to protect non-combatants in zones of protracted conflict?
  • Does the secretive nature of funding sustain conflict or create opportunities for negotiation and peace-building?

Editor’s Note

The secretive salary system adopted by Hamas civil servants lays bare the profound difficulties faced by those caught between conflict and survival in Gaza. While it underscores administrative resilience, it also poignantly highlights the moral and practical dilemmas faced by all parties in the Israeli-Palestinian conflict. As the world watches, it is crucial to move beyond headlines and consider the everyday realities of communities trying to hold their lives together amidst chaos. Understanding these nuances is essential for any thoughtful approach to peace, aid, and justice in the region.

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