The Consequences of Deducting Part of the Employee's Salary by the Employer and Adding a Part to it
প্রশ্ন · Question
Assalamu Alaikium Sheikh،may Allah ﷻ protect you and grant the
victory through your hands... Ameen.
In many Western countries we have a scheme called the Pension
scheme. This is when the employee contributes a certain amount of
his wage and gives it to the company he works for. The company also
put in a certain amount of money, which is separate from his wages,
depending on the amount the employee puts in. When the employee
reaches a certain age to retire from the company, the company will
give the employee a pension to which he contributed and they put in
money as well.
Some companies invest the contribution given by the employee into
other investments like buying shares in companies that trade in
alcohol and interest and some companies do (not?) invest the money
at all.
Could you please tell us whether this type of Pension scheme is
permitted in Islam, as many of us in my location have been signed up
by our companies because it has been made mandatory by the
government?
I hope my question is clear.
Jazakumullahu Khair
Wa Alaikum Assalam wa Rahmatullahi Wa Barakatuhu
উত্তর · Answer
1- The employer may agree with the employee to provide him with
health care or to give him a pension after a certain age for a part of
the employee's wage, which is deducted during a certain period, in
addition to another part paid by the employer... This action from the
employer towards his employees as long as it is attached to the
contract between the employer and employees as a condition of the
contract, this is because the original contract is an Ijara contract and
this is known, and the commitment by the employer to provide
health care and a pension to the employee is a condition attached to
the contract of employment, and the conditions in the contracts are
not prevented unless there is text of their prohibition, such as
permitting of a Haram or prohibiting a Halal. They do not need a text
that allows them to be permissible, but requires the absence of a
prohibiting text. Narrated by Ibn Katheer bin Abdullah bin Amr bin
Auf Al -Muzani from his father from his grandfather that the
Messenger of Allah ﷺ said:
«حَلَّ حَرَاماً
َ
وْ أ
َ
وَالْمُسْلِمُونَ عَلََ سُُُِوطِهِمْ إِلََّ سَُِْطاً حَرَّمَ حَلََلاً أ »
“Muslims must fulfill their conditions, except a condition that
prohibits a Halal or permits a Haram.” [Tirmidhi].
(Revision Islamic Personality Volume Three (Shakhsiya), the chapter
of Wad’ (situation)- Shart (condition)
This is on the one hand, on the other hand, what is given to the
employee is a part of his wage deducted from him and a part is
added to it by the employer, and the employer can give his employee
of his money as much as he wants.
2- If the contract of health care or pension is a stand -alone contract,
like if an institution is established and announces to the public that
whoever wants to receive health care if he is sick or wanted to get a
pension after a certain age, then they must pay a specified monthly
amount... This is not permissible because it is a specific contract ...
This contract is invalid.
3- As for the institution's investing the money in Haram ... if this
based on your consent, that is, if you agree that they invest what you
pay with the interest, then it will go ahead, but if you do not agree
then it will not go ahead, then you are not allowed to agree that it is
invested with interest. But if the investment is without your consent,
i.e. it is not your choice, but they are doing it without your consent
under the compulsory state law, then you are not sinful.
In summary, if you are employed under a compulsory state law, and
the employer deducts part of your salary and adds part to it, and
invests this money without taking your opinion in that or without
your consent, but it is under the compulsory state law, and after a
certain age he gives you a pension or health care. .. You are
permitted to take the pension and health care because all this in
exchange for the employer's deduction of part of your salary, and
because it is compulsory.
This is what I outweigh and Allah is Most Knowledgeable and Most
Wise
Your Brother,
Abu Yasin
4 Rabii’ Al-Akhir 1440 AH
11/12/2018 CE