Establishing a Cooperative Fund for Ministry Employees
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Praise be to Allah alone, and may blessings and peace be upon the one after whom there is no prophet. Having reviewed the matter sent to His Eminence the Grand Mufti from His Excellency the Minister of Labor, bearing number (113 1) and dated 9/1/1428 AH, regarding the supervisory role over the Cooperative Fund for Ministry of Labor employees, and referred to the Committee by the General Secretariat of the Council of Senior Scholars with number (77) and dated 15/7/1428 AH, His Excellency asked the following: Given the Ministry of Labor’s desire to establish a cooperative fund for its employees, in order to strengthen the bonds of brotherhood and love among the staff and to encourage cooperation among them, in accordance with the saying of Allah the Exalted: [Al-Ma'idah 5:2]
the verse. Also, the Prophet (peace and blessings be upon him) advised us to do so, saying:Sunan an-Nasa'i 2560Sahih (Darussalam) The idea is to encourage Ministry employees to donate (not obligatory for every employee), but rather voluntarily, through monthly installments deducted from their salaries. These amounts are collected in a fund called the “ Cooperative Fund ,” the purpose of which is to assist needy members of the fund. It is disbursed as a benevolent loan to those facing disasters or emergencies, or unintentional financial shortfalls, among Ministry of Labor employees. We ask your Eminence, may Allah reward you, to review the attached regulations for this fund and inform us of their compliance with Islamic law. The fund consists of the following articles: Chapter One: Definitions. Article 1: This fund is named the “Cooperative Fund for Ministry of Labor Employees.” Article 2: The following terms are intended to mean: - The Fund: A cooperative fund among Ministry employees. - Member: A Ministry of Labor employee who holds an official position and is a member of the fund. - Loan Applicant: A male or female employee of the Ministry, and a member subscribed to the fund, who meets the conditions for
granting the loan. - The Loan: A benevolent loan granted once every two years, not exceeding (5000) five thousand riyals. - Monthly Installment: A fixed monthly installment paid by the subscribed member throughout their service with the Ministry. - Guarantor: An official Ministry employee with at least (5) years of service. - The Committee: The committee supervising the management of the fund’s operations. Loan Duration: Twenty months, starting from the month following the employee’s receipt of the loan. Article 3: The purpose of the fund is to assist needy members who face disasters, emergencies, or financial shortfalls resulting from an error (determined by the committee). Article 4: The loan is an optional right for those among the Ministry’s employees who wish to take it, and it is not permissible to lend to anyone else. Article 5: The supervisory committee of the fund consists of four members: the committee chair and three members, appointed by the Minister based on nominations from the Deputy Ministers and the Director General of Administrative and Financial Affairs, and the supervisory committee is determined annually.
Article 6: The main components of the fund are: A- An initial subscription fee paid by the member only once upon agreeing to join, in the amount of (100) one hundred riyals. B- A monthly installment collected from members in the amount of (100) one hundred riyals per month. C- Donations from subscribed members of the fund or from others, whether inside or outside the Ministry. Article 7: The borrower is obligated to repay at the rate of (250) two hundred and fifty riyals per month, for a period of twenty months, in addition to the monthly installment. Article 8: The fund’s fiscal year begins with the start of the state’s fiscal year and ends with its end. Article 9: Liquidation of the Fund: The fund may not be liquidated except by a written request signed by two-thirds of the fund’s members, and approved by the Minister. Article 10: Exemption from Loan Repayment: The borrower is exempted from repaying the loan if unable to do so due to incurable illness, based on a decision by the supervisory committee supported by a medical report, or in the event of death. Article 11: The supervisory committee of the fund
is responsible for preparing the necessary executive procedures to implement the provisions of these regulations, which are approved by the Minister. Article 12: Final Accounts: The supervisory committee of the fund prepares a financial report every six months and submits it to the Minister. Chapter Two: Procedures and Rulings. Collection Procedures: A- The supervisory committee nominates two individuals to perform the accounting, secretarial, and fund custodian duties. B- The fund accountant compiles the names of subscribers and collects the subscription values monthly in cooperation with the head of the Salaries Department in the Employee Affairs Directorate, after a written authorization signed by the member, including authorization for the bank to deduct the subscription amount, which is deposited into the fund. C- Books are kept in accordance with accounting systems. D- An account is opened at one of the Islamic banks, into which all collected amounts are deposited via the rapid transfer system. Disbursement Procedures: 1- The case of the loan applicant and the loan amount are discussed by the supervisory committee, provided that the loan amount does not exceed (5000) five thousand riyals, guaranteed by one of the Ministry’s employees.
2- A check is made out to the borrower, specifying the loan amount, and signed by both the committee chair and the fund custodian. 3- The fund provides assistance to those in need if there is a surplus resulting from donations, up to a maximum of (5000) five thousand riyals, in cases approved by the committee and agreed upon by the Minister. Repayment Procedures: 1- The borrower’s consent is obtained to deduct a monthly repayment installment from their salary via rapid bank transfer. 2- The first repayment installment is deducted from the salary of the month following the month in which the loan was received. 3- The loan is repaid within twenty months, in addition to the member’s subscription installment.
After the Committee’s study of the articles of the Cooperative Fund for Ministry of Labor employees, it issued a ruling that it sees no Islamic legal impediment to this fund with its aforementioned articles.
cooperate in righteousness and piety
وَتَعَاوَنُوا عَلَى الْبِرِّ وَالتَّقْوَىthe verse. Also, the Prophet (peace and blessings be upon him) advised us to do so, saying:
The believers are like a building they support one another.
المسلم للمسلم كالبنيان يشد بعضه بعضًاgranting the loan. - The Loan: A benevolent loan granted once every two years, not exceeding (5000) five thousand riyals. - Monthly Installment: A fixed monthly installment paid by the subscribed member throughout their service with the Ministry. - Guarantor: An official Ministry employee with at least (5) years of service. - The Committee: The committee supervising the management of the fund’s operations. Loan Duration: Twenty months, starting from the month following the employee’s receipt of the loan. Article 3: The purpose of the fund is to assist needy members who face disasters, emergencies, or financial shortfalls resulting from an error (determined by the committee). Article 4: The loan is an optional right for those among the Ministry’s employees who wish to take it, and it is not permissible to lend to anyone else. Article 5: The supervisory committee of the fund consists of four members: the committee chair and three members, appointed by the Minister based on nominations from the Deputy Ministers and the Director General of Administrative and Financial Affairs, and the supervisory committee is determined annually.
Article 6: The main components of the fund are: A- An initial subscription fee paid by the member only once upon agreeing to join, in the amount of (100) one hundred riyals. B- A monthly installment collected from members in the amount of (100) one hundred riyals per month. C- Donations from subscribed members of the fund or from others, whether inside or outside the Ministry. Article 7: The borrower is obligated to repay at the rate of (250) two hundred and fifty riyals per month, for a period of twenty months, in addition to the monthly installment. Article 8: The fund’s fiscal year begins with the start of the state’s fiscal year and ends with its end. Article 9: Liquidation of the Fund: The fund may not be liquidated except by a written request signed by two-thirds of the fund’s members, and approved by the Minister. Article 10: Exemption from Loan Repayment: The borrower is exempted from repaying the loan if unable to do so due to incurable illness, based on a decision by the supervisory committee supported by a medical report, or in the event of death. Article 11: The supervisory committee of the fund
is responsible for preparing the necessary executive procedures to implement the provisions of these regulations, which are approved by the Minister. Article 12: Final Accounts: The supervisory committee of the fund prepares a financial report every six months and submits it to the Minister. Chapter Two: Procedures and Rulings. Collection Procedures: A- The supervisory committee nominates two individuals to perform the accounting, secretarial, and fund custodian duties. B- The fund accountant compiles the names of subscribers and collects the subscription values monthly in cooperation with the head of the Salaries Department in the Employee Affairs Directorate, after a written authorization signed by the member, including authorization for the bank to deduct the subscription amount, which is deposited into the fund. C- Books are kept in accordance with accounting systems. D- An account is opened at one of the Islamic banks, into which all collected amounts are deposited via the rapid transfer system. Disbursement Procedures: 1- The case of the loan applicant and the loan amount are discussed by the supervisory committee, provided that the loan amount does not exceed (5000) five thousand riyals, guaranteed by one of the Ministry’s employees.
2- A check is made out to the borrower, specifying the loan amount, and signed by both the committee chair and the fund custodian. 3- The fund provides assistance to those in need if there is a surplus resulting from donations, up to a maximum of (5000) five thousand riyals, in cases approved by the committee and agreed upon by the Minister. Repayment Procedures: 1- The borrower’s consent is obtained to deduct a monthly repayment installment from their salary via rapid bank transfer. 2- The first repayment installment is deducted from the salary of the month following the month in which the loan was received. 3- The loan is repaid within twenty months, in addition to the member’s subscription installment.
After the Committee’s study of the articles of the Cooperative Fund for Ministry of Labor employees, it issued a ruling that it sees no Islamic legal impediment to this fund with its aforementioned articles.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.