Retirement pension
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The first question of Fatwa No. ( 7121 )
Q1: I was a volunteer in the Egyptian Armed Forces from September 1967 to January 1981, and I stayed there for approximately thirteen years. They deducted a portion of my salary every month for insurance and pensions, and this was mandatory. After Allah granted me an understanding of Islam, I submitted my resignation, and it was accepted by the grace of Allah the Exalted. However, they gave me a monthly pension of 540.56 per month. Some of my brothers mentioned to me that this pension is riba (usury or interest) and that I must abandon it. Is this ruling correct or not, and what is the correct Islamic ruling regarding this pension?
A1 : If the situation is as described, it is permissible for you to take the retirement pension; because it is a reward for the service you performed during your period of work in the government. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q1: I was a volunteer in the Egyptian Armed Forces from September 1967 to January 1981, and I stayed there for approximately thirteen years. They deducted a portion of my salary every month for insurance and pensions, and this was mandatory. After Allah granted me an understanding of Islam, I submitted my resignation, and it was accepted by the grace of Allah the Exalted. However, they gave me a monthly pension of 540.56 per month. Some of my brothers mentioned to me that this pension is riba (usury or interest) and that I must abandon it. Is this ruling correct or not, and what is the correct Islamic ruling regarding this pension?
A1 : If the situation is as described, it is permissible for you to take the retirement pension; because it is a reward for the service you performed during your period of work in the government. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.