Work and Wages

Minimum Wage

According to the Labour Law of Palestine, the minimum wage for all types of works is set through collective labour agreement. The wage of the workers is not allowed to be less than the legally approved minimum wage limit.

The minimum wage is determined by the Committee on Wages, which is established by the Council of Ministers based on recommendation of the Minister. This Committee is composed of representatives of government, the employers and the workers. The Committee examines the public policies related to wages and the extent it is compatible with the living standards in addition to submitting recommendations to the Council of Ministers. It also determines the minimum wage limit which has to be issued through a decision by the Council of Ministers.

The Committee on Wages convenes on regular basis at least once a year. It also convenes, when necessary, based upon a request by its chairperson or by representatives of any of its three parties.

Source: §57, 86-89 of the Labour Law No. (7) of 2000

For updated minimum wage rates, please refer to the section on minimum wage.

Regular Pay

Labour Law defines wage as “the full wage, which includes the basic wage, added to it the applicable bonuses and allowances”, whereas the basic wage is defined as “the agreed upon cash and/or in-kind payment which the employers pay to the workers in return for their work”. Bonuses and allowances are excluded from wage amount.

Labour law ensures timely as well as regular payment of wages. Wages are paid at the end of each month in case of workers working on monthly basis and at the end of each week in relation to workers, working on unit production or hourly or daily or weekly basis. Employers are obliged to make payments in circulated legal currency on the working days and in the workplace. Law does not allow the workers’ wage payment to be delayed for a period exceeding five days from the regular wage payment date. Workers are entitled to wage if they are present at the workplace even if they do not perform a work for reasons related to the installation.

Law prohibits deductions from workers’ wage except in case of pursuance of a final judicial judgement; for any loan due for the employers, provided that each deduction does not exceed (10%) of the related workers’ basic wage and in case of any fines imposed upon the workers. The total deduction for later two cannot be more than 15% of basic wage.

Source: §1, 81, 82 & 83 of the Labour Law No. (7) of 2000