Darul Iftaa Mahmudiyyah

Return on Compulsory Provident Fund

· 11 Jumada I 1442 AH1 min readFatwa 46612English

Question

Assalamu Alaikum. Recently I have come to know that only government mandatory imposed provident fund is allowed in Islam. Usually in case of Bangladesh, the rate of this provident fund varies from 10 % to 25%. Is there any ruling in Islam regarding the percentage that is required to be followed in this case?

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu 'alaykum wa-rahmatullāhi wa-barakātuh.

Provident funds or pension funds are of two types: voluntary and compulsory. If the fund was compulsory and you had no option in accepting or declining being part of the fund, then upon retirement, it will be permissible for you to take the money. If an amount from your salary was deducted, that will be regarded as your salary. [1] The surplus amount you receive will be considered as a gift from the company. The percentage return earned is irrelevant.

And Allah Ta'ala Knows best

Zaakir Ismail

Student Darul Iftaa
South Africa

Checked and Approved by,

Mufti Ebrahim Desai.

References (Arabic / Urdu sources)

[1]«البحر الرائق شرح كنز الدقائق ومنحة الخالق وتكملة الطوري» (7/ 300):

ألأجرة لا تملك بالعقد بل بالتعجيل او بشرطه او بالاستيفاء او بالتمكن يعنى لا يملك الأجرة الا بواحد من هذه الأربعة والمراد انه لا يستحقها المؤجر الا بذالك

Imdadul Fatawa vol 3 pg 112-112

Nawadirul Fiqh vol.1 pg 325

Answered by
Zaakir Ismail
Checked & approved by
Mufti Ebrahim Desai
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/46612
Fatawa SA: https://fatawa.co.za/fatwa/askimam-46612

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