Rami Qahman, 28, died after being shot east of Rafah in southern Gaza and 37 other Palestinians were shot and wounded during the violence, Gaza health ministry said.
Hundreds of demonstrators gathered at points along the frontier but most kept a distance from the separation barrier, correspondents said.
Egyptian President Abdel Fattah al-Sisi has reportedly convinced Palestinian Authority President Mahmoud Abbas to agree to accept the ceasefire understandings reached between Hamas and the Zionist entity, the London-based Al-Hayat reported on Thursday.
Quds News Network on Twitter said the victim was 20-year-old Mohammad Abusharbin.
Emadi had "smuggled the money" into Gaza in suitcases like a "gangster", the official said.
Egypt's president convinced PA President Abbas to OK a ceasefire between Israel and Hamas, an Arabic daily reports.
Hamas has hired over 40,000 people in Gaza since 2007 but many appeared to have been excluded from the list of payees.
Israeli Defence Minister Avigdor Lieberman criticised the Qatari money transfer to Gaza. An Israeli soldier was killed by a Palestinian sniper.
In a sign that a deal could be imminent, Israel has agreed to allow Qatar to finance salaries of Hamas government employees as well as provide temporary financial support to Gaza families.
At least 221 Palestinians have been killed by Israeli fire since the end of March, the majority shot during protests and clashes, while others have died in tank fire or air strikes.
Elkin accused Abbas, whose peace talks with Netanyahu stalled in 2014 and who is boycotting the United States because of its pro-Israel policies, of cutting salaries to "inflame Gaza, because he has not been successful on other fronts".
Recent days have seen progress toward an agreement whereby Gaza's Hamas rulers would stop the clashes in return for an easing of the Israeli blockade on the coastal enclave, which Israel says is necessary to prevent arms smuggling.
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