The Commissioner General of the United Nations Relief and Works Agency for Palestine Refugees, UNRWA, Philippe Lazzarini, has announced a new package of austerity measures affecting locally recruited staff and the delivery of services across all of the agency’s fields of operation, amid what he described as the most severe financial crisis in UNRWA’s history.

In an email addressed to UNRWA staff, Lazzarini said that starting from 1 February 2026 and until further notice, a comprehensive measure will be implemented to reduce weekly working hours by 20 percent, accompanied by a corresponding 20 percent salary cut. He said the move was an emergency step aimed at avoiding large scale layoffs of local staff and ensuring the continuation of minimum essential services.

Details of the reduction in working hours

Lazzarini explained that, in accordance with Article 1.101(1) of the local staff regulations, working hours have been adjusted based on job categories. Employees currently working 37.5 hours per week will see their hours reduced to 30 hours weekly, while those working 42 hours per week will have their schedules reduced to 33.6 hours.

He noted that certain categories of staff will be exempted from these reductions and will continue to work full hours, either 37.5 or 42 hours per week, due to the critical and sensitive nature of their duties. This exemption, he said, followed a comprehensive analysis of UNRWA positions across all fields to prevent undermining overall performance in sectors where working hours cannot be practically reduced.

An unprecedented financial crisis

The Commissioner General said that UNRWA has been grappling with financial crises for years, particularly since 2018, but stressed that the current crisis is fundamentally different from previous ones.

He attributed the situation to the suspension of funding by two major donors that together accounted for nearly one third of the Programme Budget used to pay the salaries of locally recruited staff, in addition to insufficient increases in funding from other sources.

While resource mobilization efforts have resulted in new contributions or increased pledges from some donors, for which the agency expressed gratitude, Lazzarini said these funds remained insufficient to meet Programme Budget requirements.

He also pointed to the campaign led by the Israeli occupation government against UNRWA, including sustained engagement with governments and lawmakers in donor countries, which has had a direct negative financial impact. Allegations related to breaches of neutrality, even after being disproven or addressed, have led several traditional donors to reduce contributions or impose additional conditions.

Projected deficit of 220 million dollars

Lazzarini explained that global cuts in humanitarian and development funding during 2025 have severely constrained the agency’s ability to secure additional resources, within an international context that has forced other UN and international organizations to reduce staff and services.

Despite these challenges, UNRWA managed to continue paying the salaries of its locally recruited staff throughout 2025 thanks to cost control measures exceeding 175 million dollars, along with the deferral of 45 million dollars in liabilities to 2026.

However, projections for Programme Budget revenues in 2026 indicate a cash flow deficit of 220 million US dollars, even if existing austerity measures remain in place, leaving the agency’s financial situation extremely fragile and unsustainable.

Addressing staff questions on why UN regular budget funds cannot be used to resolve the crisis, Lazzarini clarified that these funds are administered by the UN General Assembly and cannot be redirected. The costs of regular budget staff, which cover the salaries of international personnel, cannot be transferred to the Programme Budget allocated for local staff salaries. He noted that this position has been repeatedly affirmed by the Advisory Committee on Administrative and Budgetary Questions, most recently in December 2025.

Lazzarini said he was fully aware of the negative impact that reduced services and working hours would have on Palestinian refugees who rely on UNRWA, as well as on staff working under extremely difficult conditions. He stressed that the decision represents a last resort to preserve the agency and its mandate.

He added that if sufficient funding is secured to cover the deficit in the coming period, senior management will review the decision with the aim of restoring services to their current levels.

The Commissioner General concluded by saying that senior management continues to work intensively with UN member states to ensure the sustainability of UNRWA operations. He pledged to keep staff informed of any new developments with full transparency, calling for continued collective efforts to protect the agency, support colleagues, and serve Palestine refugees.

Staff protest and temporary work stoppage in Jordan

In parallel, UNRWA staff carried out a work stoppage after clinics operated by the agency across various parts of Jordan announced a temporary suspension of services on Monday, 19 January 2026, as part of a protest against decisions issued by UNRWA management.

Staff said the stoppage took place from 10:00 am until 12:00 pm, affecting the provision of health services during that period.

The protest came in rejection of what employees described as unfair and unjust decisions targeting both the refugee community and staff, decisions they say will negatively affect the continuity and quality of health services. These measures include the reduction of working hours and a 20 percent cut in salaries, alongside other administrative and financial steps.

According to the statement, the decisions include the dismissal of more than 600 employees in Gaza, the termination of a number of security guards in Amman, shortening the renewal period of employment contracts to one year instead of three, and the failure to convert staff contracts to permanent status after ten years of service.

The statement also pointed to reduced clinic working hours, the closure of clinics on Saturdays starting next month, a freeze on new recruitment, the failure to regularize daily wage workers, and salary cuts for staff in Gaza and the West Bank.

It further warned of major cutbacks in health services, accompanied by shortages of essential medicines, including insulin, increasing patient suffering and posing serious risks to their health.

Organizers of the protest called for unity and collective action in defense of the right to fair and dignified health services, and in rejection of any measures that undermine the rights of employees and Palestine refugees alike.