Cryptic texts and cash in hand: How Hamas pays its civil servants

Civil servants, from police officers to tax officials, receive cryptic texts, sometimes on their spouse’s phones. The message instructs them to reach a specific location at a designated time with a code phrase like, “Meet a friend for tea”. Upon arrival, the officials are discreetly handed an envelope of cash by a stranger, often without a word, and the person vanishes immediately after with no further discussion.

Hamas reportedly pays around 30,000 civil servants once every 10 weeks. These payments amount to just over 20 per cent of their pre-war salaries, totalling about $7 million (£5.3 million), according to the BBC. For most employees, that’s roughly one-third of what they used to earn and in a place where basic necessities like flour can cost up to $80 per kilogram, that barely makes ends meet.

Each journey to collect payment carries the risk of death. One employee from Hamas’s Ministry of Religious Affairs told the BBC, “Every time I go to pick up my salary, I say goodbye to my wife and children. I know that I may not return.”

Even after successfully collecting their salaries, the officials often face a challenge with the condition of the currency. With scarcity of cash, many receive old, soiled notes that shopkeepers refuse to accept. The BBC quoted a school teacher, who is the sole provider for a family of six, as saying, “I received 1,000 shekels (about $300) in worn-out banknotes. Only 200 shekels were usable and the rest, I honestly don’t know what to do with.”

How Hamas continues to finance its employees still remains unclear. In March, Israeli forces killed Ismail Barhoum, Hamas’s head of finance, in a strike on Nasser Hospital in Khan Younis. Israel justified its action by accusing Barhoum of funnelling funds to the group’s military wing.

Historically, Hamas has relied on import duties, local taxes, and financial support from Qatar. Its military wing, the Qassam Brigades, is largely funded by Iran and operates through a separate financial system. A senior Hamas official told the BBC that prior to the October 7, 2023, attack on Israel, the group had stockpiled around $700 million in cash and hundreds of millions of shekels in underground tunnels.