After nearly two years of conflict, Hamas’s military capacity has been severely weakened, and its political leadership is under intense pressure. Despite these challenges, Hamas has managed to sustain a covert cash-based salary payment system for approximately 30,000 civil servants, paying a total of around $7 million monthly.
Salary Payments and Distribution Method
According to BBC interviews with several civil servants, employees receive only about 20% of their pre-war salaries every 10 weeks. Payments are made through a secretive system involving encrypted messages sent to employees’ phones, instructing them to go to specific locations at set times. There, discreet couriers hand over sealed envelopes containing cash before quickly disappearing to avoid detection.
This limited payment has caused significant dissatisfaction, even among Hamas loyalists, especially in the face of skyrocketing inflation and acute food shortages. For example, the price of one kilogram of flour in Gaza has soared to as high as $80, an unprecedented level.
Risks Involved in Collecting Salaries
Because Gaza’s banking system is non-functional, receiving salary payments is a risky operation. Israeli forces frequently target these cash distribution points in an effort to undermine Hamas’s governance. One Hamas Ministry of Religious Affairs employee described how he says goodbye to his family each time he collects his salary, knowing the potential danger.
A schoolteacher, identified as Alaa to protect his identity, recounted receiving 1,000 shekels (around $300) in worn, unusable banknotes — only 200 shekels were actually spendable. He struggles to feed his six-member family, often relying on humanitarian aid distributions.
How Hamas Finances Salary Payments
Despite heavy damage to its administrative and financial infrastructure, Hamas reportedly had amassed around $700 million in cash hidden in underground tunnels before the October 7, 2023 attack that triggered the current Israeli military offensive. This stash was directly managed by senior Hamas leaders Yahya Sinwar and his brother Mohammed, both later killed by Israeli strikes.
Hamas’s funding sources include:
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Heavy import taxes and duties levied on Gaza’s population
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Financial support from Qatar
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Military funding from Iran directed at Hamas’s armed wing, the Qassam Brigades
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Approximately 10% of the budget of the Muslim Brotherhood, according to senior sources
Additionally, Hamas generates revenue through taxing traders and selling cigarettes at inflated prices—up to 100 times their pre-war cost, with a pack that used to cost $5 now priced above $170.
Public Frustration and Humanitarian Impact
Many Gaza residents express anger that Hamas distributes food parcels and other aid predominantly to its supporters, leaving much of the population facing hunger and malnutrition. Families report witnessing neighbors loyal to Hamas receiving food and flour while they endure severe deprivation.
One widow, Nisreen Khaled, lamented how her children cried from hunger and from seeing Hamas-affiliated neighbors receive aid. She questioned Hamas’s priorities, asking why it failed to secure food, water, and medicine before initiating the deadly October 7 attack.
Conclusion
This secret salary payment system demonstrates Hamas’s resilience under extreme military and economic pressure. However, it also highlights the dire humanitarian conditions in Gaza, marked by widespread food insecurity, inflation, and ongoing risk due to the political and military conflict.
By Maxamed Cawil Jaamac
(In-depth analysis based on BBC reporting and other sources)
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