Financial prizes given to encourage saving
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Fatwa number ( 9150 )
Q: I would like to ask Your Eminence about saving, and I would like to explain how it is calculated: A bonus of 10% is paid for each year, knowing that it is not added as capital for the following year, but is calculated at the end of service. For example: An employee whose salary is 3000
Saudi Riyals, and who saved 600 Riyals monthly, and spent 5 years in service, it is calculated as follows: 600 × 12 = 7200 Riyals, 7200 × 5 = 36000 Riyals, so he is given a bonus of 50%: 36000 × 50 ÷ 100 = 18000 Riyals, which is added to the amount he saved in 5 years: 36000 + 18000 = 54000 Riyals. I have read the fatwa attached to this message, in which the honorable Shaykh Ahmad Hasan Muslim, a member of the Al-Azhar Fatwa Committee, says: that the financial prizes that come to encourage saving are permissible no matter what. What is the difference between the bonus and the prizes, and is it lawful or forbidden? Since some Muslims understood that saving is lawful after this fatwa colored in yellow. I ask Allah, then Your Eminence, to inform me and guide me to evidence and the path of guidance. May Allah reward you with good
A : Saving in this manner is forbidden; because adding an amount of 50% to the amount saved over a period of five years is considered an increase of riba.
Q: I would like to ask Your Eminence about saving, and I would like to explain how it is calculated: A bonus of 10% is paid for each year, knowing that it is not added as capital for the following year, but is calculated at the end of service. For example: An employee whose salary is 3000
Saudi Riyals, and who saved 600 Riyals monthly, and spent 5 years in service, it is calculated as follows: 600 × 12 = 7200 Riyals, 7200 × 5 = 36000 Riyals, so he is given a bonus of 50%: 36000 × 50 ÷ 100 = 18000 Riyals, which is added to the amount he saved in 5 years: 36000 + 18000 = 54000 Riyals. I have read the fatwa attached to this message, in which the honorable Shaykh Ahmad Hasan Muslim, a member of the Al-Azhar Fatwa Committee, says: that the financial prizes that come to encourage saving are permissible no matter what. What is the difference between the bonus and the prizes, and is it lawful or forbidden? Since some Muslims understood that saving is lawful after this fatwa colored in yellow. I ask Allah, then Your Eminence, to inform me and guide me to evidence and the path of guidance. May Allah reward you with good
A : Saving in this manner is forbidden; because adding an amount of 50% to the amount saved over a period of five years is considered an increase of riba.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.