The decision this week by the West Bank-based Palestinian Authority to impose pay cuts on its civil servants in the Gaza Strip has sparked anger among the employees, with protests throughout the week.
Tens of thousands took to a square in central Gaza City today in the largest protest since the 30-per cent cut was announced, with demonstrators calling on PA leader Abbas to sack his government.
A handful of protesters announced they would begin a hunger strike, a spokesman told AFP.
Fatah runs the West Bank, the other part of the Palestinian territories separated from Gaza by Israeli territory.
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After Hamas seized power, around 70,000 PA employees in Gaza lost their posts but they were kept on its payroll nevertheless.
Hamas set up its own parallel administration with 50,000 staff, whose salaries the PA refuses to pay.
Earlier this week the Fatah-run PA announced the pay cuts, saying they were necessary because its budget has been hit by falling foreign aid.
Local elections due to take place have also been suspended in the Gaza Strip after infighting between Fatah and Hamas, though they are expected to take place next month in the West Bank.
Israel has maintained a blockade of Gaza for a decade, severely damaging the enclave's economy.