Saving with the Aramco Company
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Fatwa No. ( 17271 )
The questioner: We present to your Eminence that we are employees of the Saudi Aramco Company in Dhahran and its branches in Riyadh Jeddah Yanbu and others, and the number of its employees is approximately 55,000. The company has issued
a booklet about the savings system in Saudi Riyals, in both Arabic and English. Upon reviewing this booklet, it becomes clear from its content that the savings system consists of two types: The first type: It consists of three tiers: 1- The saved amount, i.e., the amount deducted from the employee's salary by his choice, starting from a deduction of 1% to 10%, as on page 3 of the aforementioned system. 2- The company pays the saver a savings bonus, according to the length of service, which starts from 5% to 100%, as on page 4 of the system. 3- The profit on the saved amount and the bonus, which increases with the length of time, as on page 6 of the system. As for the second type: It consists of the first two tiers, the saved percentage and the bonus provided by the company for savings, as on the last part of page 6 of the system. This is the understanding of the two types of savings based on the aforementioned attached booklet for your Eminence. Since some employees have become confused regarding Fatwa No. ( 8161 ), does it include the two types mentioned above or not? We request clarification of this so that the conscience is absolved, whether it is permissible or forbidden.
A : After the Committee studied the inquiry and reviewed the aforementioned system and the previous fatwa issued by the Committee with number (8161) and date 9 \ 3 \ 1405 AH, the text of which is: (Subscribing to the savings system
at Aramco Company is forbidden; because it contains riba al-fadl and riba al-nasi'ah, due to the determination of an interest rate ranging between 5% (five percent) and 100% (one hundred percent) of the money saved by the Saudi employee, as well as what is given to the saving employee as a bonus, unlike the non-saving employees, as stated in its savings system) end of quote. The Committee answered : That its aforementioned fatwa includes the two types of savings mentioned in the system, so they are forbidden by the Shari'ah; because they contain the forbidden riba, as explicitly stated in the Qur'an and the Sunnah, which are known from the religion by necessity, and that encouraging the employee to perform his job duties and continue working is not done except by what Allah and His Messenger (peace and blessings be upon him) have made permissible, not by forbidden earnings.
The questioner: We present to your Eminence that we are employees of the Saudi Aramco Company in Dhahran and its branches in Riyadh Jeddah Yanbu and others, and the number of its employees is approximately 55,000. The company has issued
a booklet about the savings system in Saudi Riyals, in both Arabic and English. Upon reviewing this booklet, it becomes clear from its content that the savings system consists of two types: The first type: It consists of three tiers: 1- The saved amount, i.e., the amount deducted from the employee's salary by his choice, starting from a deduction of 1% to 10%, as on page 3 of the aforementioned system. 2- The company pays the saver a savings bonus, according to the length of service, which starts from 5% to 100%, as on page 4 of the system. 3- The profit on the saved amount and the bonus, which increases with the length of time, as on page 6 of the system. As for the second type: It consists of the first two tiers, the saved percentage and the bonus provided by the company for savings, as on the last part of page 6 of the system. This is the understanding of the two types of savings based on the aforementioned attached booklet for your Eminence. Since some employees have become confused regarding Fatwa No. ( 8161 ), does it include the two types mentioned above or not? We request clarification of this so that the conscience is absolved, whether it is permissible or forbidden.
A : After the Committee studied the inquiry and reviewed the aforementioned system and the previous fatwa issued by the Committee with number (8161) and date 9 \ 3 \ 1405 AH, the text of which is: (Subscribing to the savings system
at Aramco Company is forbidden; because it contains riba al-fadl and riba al-nasi'ah, due to the determination of an interest rate ranging between 5% (five percent) and 100% (one hundred percent) of the money saved by the Saudi employee, as well as what is given to the saving employee as a bonus, unlike the non-saving employees, as stated in its savings system) end of quote. The Committee answered : That its aforementioned fatwa includes the two types of savings mentioned in the system, so they are forbidden by the Shari'ah; because they contain the forbidden riba, as explicitly stated in the Qur'an and the Sunnah, which are known from the religion by necessity, and that encouraging the employee to perform his job duties and continue working is not done except by what Allah and His Messenger (peace and blessings be upon him) have made permissible, not by forbidden earnings.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.