Why are Palestinians protesting ‘controversial’ new Social Security Law?

Thousands of Palestinians protested and shut down shops and businesses in the West Bank due to controversial new social security regulations that are being rolled out.

AFP

Thousands of Palestinians in the occupied West Bank protested against the Palestinian Authority (PA), due to a new social security law.

The new regulations contain changes to the retirement age, social security pay and maternity leave.

People joining the protests claim that money from taxation will be wasted in mismanagement rather than serving Palestinians in the long-term.

In several cities in the West Bank, including Ramallah and Bethlehem, hundreds of Palestinian business owners shut down their businesses on Tuesday as an act of protest.

AA

Palestinians staged a partial strike in the Israeli-occupied West Bank on Tuesday to protest a controversial social security law.

What is the new law about?

One of the first pieces of regulation implementedon Tuesday requires every Palestinian company with more than 200 employees to registerto join the Palestinian Security Corporation (PSSC).

The PSSC is the public body overseeing pensions and social taxation, as well as being the fund where the money is collected.

The new legislation demandsthat private-sector employees make a contribution of seven percent, while companies will need to give 10 percent of their profits to the fund.

The governmentargues that through the law, payment under the minimum wage will not be possible and will be easier to detect than before.

The minimum wage under the PA is currently $395 per month. However, according to the public Palestinian Central Bureau of Statistics, more than 15 percent of private sector employees receive less than the monthly minimum wage.

Another changeis that the retirement age for men and women is fixed at the age of 60.

Currently, private sector companies givetheir employees an ‘end of service’ salary after they leave the company, including a one-month wage for each year worked at the company.

This regulation was regarded as a form of retirement pay and will be abolished when the new law comes into effect.

The rightto maternity leave will be guaranteed and a longer leave given. Currently, new mothers can only take between oneand a couple of weeks off after giving birth.

The bill was enactedby the President of the State of Palestine, Mahmoud Abbas, in 2016 with a presidential decree and is to be implemented over time.

Reuters

Why are Palestinians protesting the Palestinian Authority?

From 2016 to 2018, Palestinian civil society organisations and state officials co-worked several amendments to attract public support.

Many protesting Palestinians believethe Abbas government is corrupt and accuse it of not doing enough to tackle corruption in state departments to ensure the new regulations are followed properly.

The Legislative Council of Palestine has not convened since Hamas and Al-Fatah split in 2007, after Hamas won the elections for the legislative branch of the government, and many Palestinians are angrythat Abbas is ruling by presidential decrees.

During previousdemonstrations in November last year, thousands shouted “let the social security law fall” and expressed their discomfort that the law came at a time of economic instability and a lack of national unity.

One demonstrator told a local Palestinian news agency: “A social security law can be good in an economically stable country, where people’s income is enough to contribute to the fund.” 

But, this seems not to be the case for many Palestinians joining the protests.

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