How Palestinian workers in Israel stand to benefit from new payment regulations
Come January, many Palestinians working in Israel will see big changes in how and how often they are paid.
RAMALLAH, West Bank — An Israeli law restricting cash transactions will have a positive impact on the Palestinian economy as well as Palestinians working in Israel, some economists say.
The law, passed in March and set to take effect at the beginning of 2019, will limit the amount of cash in the economy in a bid to fight money laundering and tax evasion. It sets a limit of 11,000 shekels (about $3,000) on business cash transactions; larger transactions are to be made through e-cards or bank transfers.
Under the new law, workers in Israel who earn $3,000 or more per month, regardless of their nationality, will receive their wages through bank transfers rather than in cash. Wages are also to be paid monthly, not weekly, as is currently the case.
The Palestinian Central Bureau of Statistics estimates that in 2017, some 130,700 Palestinians held permits to work in Israel and the settlements. Palestinian economists say the decision will help Palestinians by improving the structure and organization of the Israeli labor market.
