Provident fund?
Question
If a job holder specifically knows that the profit of his compulsory provident fund is achieved from interest based bank, then can he take that money ?
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. The surplus amount you receive will be considered as a gift from the company.[1]
And Allah Ta’āla Knows Best
- Checked & approved by
- Mufti Ebrahim Desai
Where scholars differ, it’s safer to take the more cautious view.
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Source: Jamiatul Ulama KZN — https://jamiat.org.za/provident-fund/
Fatawa SA: https://fatawa.co.za/fatwa/jamiat-15501
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