The Palestinian Authority Finance Ministry is expected to begin paying the salaries of approximately 160,000 civil servants in the West Bank and Gaza Strip on Wednesday, Israel Radio reported.
PA Prime Minister Salam Fayyad said that the source of the first full wage payments to public sector employees in more than a year was Israel's release of Palestinian tax funds last week.
Families of incarcerated Palestinians will also receive salaries unpaid for the past three months.
On Monday, the PA announced that employees cooperating with Hamas will be cut from the payroll. The PA now suspects that Hamas members will try to overpower Gaza's banks.
AP contributed to this report.