161
D‐ Violating the right to work by not developing an effective social security
system for workers: The continued deprivation of workers of their right to
social security prevents ensuring them a decent pension and putting legal
text into practice.194 Since the cancellation of the Social Insurance Act,
which provided reasonable assurance for workers in their retirement in
2007, no fair alternative system was laid down.
E‐ Violating the right to work by subjecting end‐of‐service (EOS) and
retirement funds to income tax: During 2010, the PNA laid down a draft
law amending the Income Tax Act, aimed at subjecting (50%) of the funds
allocated to the end of service (EOS) and retirement to income tax, which
would be a serious violation of workers' rights if it is ratified. Although the
resolution amending the retirement law195 and canceling the Social
Insurance Act stipulated the subjection of the “non‐governmental
organizations, civil society, the private sector staff, workers subjected to
the provisions of the labor law, employees and members of trade unions”
to the civil retirement system related to government employees, it also
provided that “it is regulated by an order issued from the Council of
Ministers”. Despite the issuance of the mentioned regulation by the
Council of Ministers,196 this regulation did not develop a comprehensive
pension system for workers in different NGO sectors and was not able to
develop it without it essentially falling within the public pension law. This
is assuming the integration of the retirement and social security systems
together, one for public sector employees, and the second for the private
sector employees. The applicable public pension system was developed to
suit government employees only, who receive salaries from the general
budget, and who assume service in the job for a purpose totally different
from the goal of working in the private sector, which is the administration
194
Article (22) of the Palestinian Basic Law for the year 2002 stipulates that: “1‐ Social, health, disability
and retirement insurance shall be regulated by law; 2‐ Maintaining the welfare of families of martyrs,
prisoners of war, the injured and the disabled is a duty that shall be regulated by law. The National
Authority shall guarantee these persons education, health and social insurance.”
195
Resolution Act No. 5 of 2007 amending the Law on Public Pensions for the year 2005 issued on
23/08/2007.
196
The mentioned regulation was issued by the Council of Ministers on 09/08/2010.
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