Press Release

Taking into account the difficult conditions facing public employees and the banking system’s obligation to make special provision for the prevalent circumstances which caused partial December-salary delays, the PMA has issued a circular restricting all banks operating in Palestine to a maximum deduction of 50% of value of installments due for accounts of employees who have received partial payments of salaries. In other words, the deduction made in relation to borrower-employee, or to employees for whom he/she are guarantors, will not exceed 50% of the value of the payment disbursed to that employee’s account.

The PMA has also required banks to refrain from collecting interests/delay penalties from an employee for whom a partial salary was disbursed, in case he/she defers payment of the remaining amount of installment. The PMA also required banks to collect a single salary transfer fee, regardless of the number of salary payments. Furthermore, it required banks to scrap fees charged for bounced cheques drawn on public employee accounts, provided that the total value of bounced cheques for an employee does not exceed that employee’s monthly wage.