Inside Hamas’s Secret Salary Network Amid Gaza Crisis

Despite war and economic collapse, Hamas pays 30,000 civil servants through a secret cash system, risking Israeli strikes. Funded by pre-war reserves and inflated taxes, the scheme sparks public anger amid severe food shortages. Critics accuse Hamas of prioritizing loyalists, deepening resentment in an already devastated Gaza.

Despite nearly two years of war, Hamas has managed to maintain a clandestine cash-based system to pay tens of thousands of civil servants, even as its military capabilities are severely diminished and Gaza’s economy teeters on collapse. The payments—amounting to around $7 million—are dispersed every 10 weeks, covering only a fraction of pre-war salaries.

Three government employees in Gaza confirmed to the BBC they had recently received roughly $300 each. These payments, delivered in worn-out notes, are often worth less than their nominal value due to the region’s crippled financial infrastructure and hyperinflation. For many, the money barely stretches beyond a few days' worth of food.

With Gaza's banks non-functional, salary collection is done in secret. Workers receive encrypted messages telling them when and where to meet a contact, often referred to euphemistically as “a friend for tea.” The handover is quick and discreet, usually in a crowded public space—targets frequently struck by Israeli forces. Employees describe each salary pickup as a life-risking event.

The source of Hamas’s financial resilience remains partly hidden. However, a senior Hamas insider told the BBC that nearly $700 million in cash was stockpiled in tunnels before the October 2023 attack that led to Israel's ongoing military campaign. Hamas also continues to raise revenue by heavily taxing goods, especially cigarettes, and selling them at exorbitant prices.

As humanitarian conditions in Gaza worsen, resentment is growing. Accusations that Hamas prioritizes aid for loyalists are widespread. Civilians unaffiliated with the group report being excluded from food distributions while watching Hamas supporters receive parcels.

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International criticism is mounting, with questions raised about how Hamas continues to fund its governance while civilians suffer. “Why didn’t they secure food, water, and medicine before launching their war?” asked one grieving widow.