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Does draft Palestinian social security law really protect workers?

The draft social security law has been widely criticized for failing to provide workers sufficient retirement pensions or protection in cases of work-related disability.

A Palestinian employee paid by Palestinian Authority stands next to a policeman as he waits to receive his salary outside a closed bank in Gaza City June 5, 2014. A Palestinian unity government formed by President Mahmoud Abbas and the Islamist Hamas group faced its first and serious challenge on Thursday when civil servants of Hamas, who were not on the payment list, scuffled with those cashing their salaries. Civil servants employed by Hamas since 2007 arrived and prevented employees paid by the Palestini
An employee of the Palestinian Authority stands next to a policeman as he waits to receive his salary outside a closed bank in Gaza City, June 5, 2014. — REUTERS/Mohammed Salem

RAMALLAH, West Bank — Work on a Palestinian social security law began in October 2012, and the first draft was submitted July 27, 2015, to the Council of Ministers by the committee ​selected to develop it. The draft presented had shortcomings that required further amendment. The final version of the law was submitted in December to the Council of Ministers, which is expected to ratify it and send it to the president for signing.

The law covers issues related to retirement benefits, maternity leave, disability and payments to families of deceased workers and compels companies to make contributions to the Social Security Fund on behalf of their employees. The draft law comes at a time when Palestinian workers are suffering hardships and dire conditions, with no guarantees of financial security. The minimum wage law is not being enforced, and Palestinians face rising unemployment and difficulty being allowed to work in Israel.

Criticism of the social security law has been leveled by representatives of workers unions, who are divided between those who view it as better than nothing despite its shortcomings and others, the majority, who think its shortcomings undermine the concept of social security. The proposed retirement funds — which the committee supposedly set at the minimum wage, 1,450 shekels a month ($366), which is also the poverty line — are not commensurate with the cost of living and difficult economic conditions in general for Palestinians. In fact, critics argue, monthly payments would fall well below the poverty line under the draft plan.

Ibrahim Dhouib, a member of the General Secretariat of the Palestinian General Federation of Trade Unions, told Al-Monitor, “The idea behind the law is to offer security to workers in case of disability and old age, neither of which is addressed in this law. The wage percentage received by workers whose employment has ended is greatly below their respective salaries and therefore cannot cover expenses. We expected these fundamental deficiencies to be addressed during discussions pertaining to the draft law, which, in its current form, does not achieve the objectives for which it was legislated in the first place.”

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