Reem Al Balawi knew it would be bad news even before she opened the message from UNRWA, the UN agency for Palestinian refugees. What she did not expect was a 20 per cent cut to her salary, starting next month.
“I have worked as a teacher with UNRWA for 15 years in elementary schools in northern Gaza,” said Ms Al Balawi, 41, a mother of six. “During this [Israel and Hamas] war, as soon as UNRWA resumed its operations I returned to work despite the danger and shelling.”
The decision is a crushing blow for Ms Al Balawi, whose monthly salary will drop from about $1,200 to $900. She has been the sole provider for her family since her husband's shop was destroyed not long after the latest war began in October 2023.
Heavy Israeli bombardment has destroyed most of Gaza, leaving most of its two million residents without homes or a means to support themselves. Despite a ceasefire that began in October, Israel continues to restrict the entry of humanitarian aid and commercial goods, pushing up prices of whatever basic items are available.
“Living conditions in Gaza are already unbearable,” Ms Al Balawi told The National. “We need any extra financial support we can get, not salary cuts.”
Along with hundreds of UNRWA employees in Gaza whose pay is being cut, hundreds more are being dismissed under sweeping austerity measures announced by the agency, which said it is facing a $220 million shortfall in its 2026 budget.
In a message to staff on January 14, UNRWA Commissioner General Philippe Lazzarini said it had been forced to adopt “last-resort” measures to avoid collapse.
From February 1, the working hours for local staff will be reduced by 20 per cent, with salaries adjusted accordingly.
Even more alarming for many employees is a decision announced by Sam Rose, acting director of UNRWA Affairs in Gaza, to terminate the contracts of employees who are living outside the territory on exceptional leave, with effect from March 1.
UNRWA “has continued to exert every possible effort to secure and provide the necessary funds to sustain current programmes and meet its obligations regarding staff salaries. However, the situation has continued to deteriorate", Mr Rose said in a message to employees.
He said that after a "careful review", Mr Lazzarini had "decided to terminate the contracts of employees who are outside Gaza and currently on exceptional leave, in the interest of the agency”.
Among those affected is Ayman Al Kurdi, 47, from Jabalia camp in northern Gaza. He left Gaza with his family when the Rafah border crossing opened briefly, seeking medical care for his youngest son, Ahmad, who suffers from a heart condition.
“For nearly a year in Egypt, I relied entirely on my UNRWA salary of about $1,800 to survive, pay rent and treat my son,” he told The National.
“I’ve worked with UNRWA for 21 years, moving through several positions. It is inconceivable that after all this, I would be dismissed in such an arbitrary way.”
Mr Al Kurdi said attempts to appeal the decision were rejected. “They told us the decision is final and cannot be reversed.”
Mustafa Al Ghoul, head of the Employees’ Union in Gaza, said the dismissals affect nearly 500 people working in the education sector.
“These employees are permanent, core staff of UNRWA,” Mr Al Ghoul told The National. “Casting them aside is a grave injustice to families who have already endured unimaginable hardship.”
He disputes UNRWA’s claim that the financial situation left it no alternative.
“Funding data shows the agency still has room to manoeuvre,” he said. “These decisions come in response to political pressure, especially Israeli and American pressure, to weaken or dismantle UNRWA.”
The union has launched protest action and appointed an international law firm to challenge the dismissals.
Sami Al‘Umsi, head of the Workers’ Union in Gaza, warned UNRWA’s decision would have a ripple effect.
“This is an extremely critical time,” he told The National. “Dismissing UNRWA employees now will sharply raise unemployment. Hundreds of families will lose their only source of income and fall into poverty. The labour market in Gaza is already nearly paralysed.”
For Ms Al Balawi, having her pay cut is personal. “I go to work in the middle of war, under shelling, to educate children who have lost everything,” she said. “Now they are taking from us what little stability we have left. How are we supposed to survive?”
