The Ruling on the Savings and Investment System in the Company
Machine translationRead the Arabic original
The questioner : May Allah keep you safe. I am calling you from Saudi Arabia. I have a question because a person mentioned your name to me, and I would like to get your opinion on a matter, if you have no objection.
The Shaykh : Please, go ahead.
The questioner : The question, may you live long, is that I work for a company that has a savings system.
The Shaykh : Yes.
The questioner : It is among the employment benefits they offer a person when he applies for a job with them. They have a home ownership program, savings, and other benefits. The savings system is that after you have worked for five years, you can start having them deduct from your salary, for example, ten percent, and they hold this amount for each year. They give you the amount, but they do not give you the bonus on it until the end of your service. You can withdraw the amount you saved at any time, but the bonus on it must not be received until the end of service. The intention is to encourage the person to save for his old age. So the question now is: Is the amount usury or something else? And after they saved this amount, they obtained a license from the Ministry of Labor and Social Affairs to invest these amounts. They came to the employees and gave each employee the right for the company to invest their money. They told them that you might profit or you might lose, but nothing will be taken from your capital. However, the profit is not guaranteed. My question is about the three parts: what they deduct from your salary, what they give you as a bonus after the end of service which you cannot take until the end of service, and the return from the investment. What is the ruling on them?
The Shaykh : It is not permissible for this employee to take anything other than his capital that they deducted from him. As for what you call the bonus, it is what they call interest. It is not permissible to call it a bonus or interest, but rather we should call it what Allah called it, riba (usury or interest)[Al-Baqarah 2:279]. It is as if he intended by the bonus something other than the interest he takes on it.
The questioner : If I took it from them, what do I do with it?
The Shaykh : Dispose of it in public utilities, but it is not permissible for you to benefit from it, not even by a qirsh.
The questioner : No, for example, I do not benefit from it, but can I build a mosque with it?
The Shaykh : No, a mosque is not built with dirty, impure money. Rather, it is for public utilities. Do you understand what public utilities are?
The questioner : Can I give it to charitable associations?
The Shaykh : No, no. I am asking you, do you understand what public utilities are? No, public utilities are everything that the general public benefits from. For example, if we imagine a poor village whose people are in need of paving a road for it, or for example, bringing water to it, or similar benefits that the general public benefits from, this is among the public utilities.
The questioner : Yes, meaning the rich and the poor, the needy and the non-needy all benefit from it.
The Shaykh : Well done.
The questioner : As for directing it to a specific needy group, this is not permissible.
The Shaykh : It is not permissible.
The questioner : Okay, may Allah reward you with good.
The Shaykh : And you, my brother.
The questioner : Goodbye.
The Shaykh : And do not forget to say the salam.
The questioner : Peace be upon you.
The Shaykh : Well done, and upon you be peace and the mercy of Allah. And upon you be peace and the mercy of Allah. Praise be to Allah, all is well.
The questioner : May Allah keep you safe.
The Shaykh : Please.
The Shaykh : Please, go ahead.
The questioner : The question, may you live long, is that I work for a company that has a savings system.
The Shaykh : Yes.
The questioner : It is among the employment benefits they offer a person when he applies for a job with them. They have a home ownership program, savings, and other benefits. The savings system is that after you have worked for five years, you can start having them deduct from your salary, for example, ten percent, and they hold this amount for each year. They give you the amount, but they do not give you the bonus on it until the end of your service. You can withdraw the amount you saved at any time, but the bonus on it must not be received until the end of service. The intention is to encourage the person to save for his old age. So the question now is: Is the amount usury or something else? And after they saved this amount, they obtained a license from the Ministry of Labor and Social Affairs to invest these amounts. They came to the employees and gave each employee the right for the company to invest their money. They told them that you might profit or you might lose, but nothing will be taken from your capital. However, the profit is not guaranteed. My question is about the three parts: what they deduct from your salary, what they give you as a bonus after the end of service which you cannot take until the end of service, and the return from the investment. What is the ruling on them?
The Shaykh : It is not permissible for this employee to take anything other than his capital that they deducted from him. As for what you call the bonus, it is what they call interest. It is not permissible to call it a bonus or interest, but rather we should call it what Allah called it, riba (usury or interest)
But if you repent, you may have your principal - [thus] you do no wrong, nor are you wronged.
وَإِن تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَالِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَThe questioner : If I took it from them, what do I do with it?
The Shaykh : Dispose of it in public utilities, but it is not permissible for you to benefit from it, not even by a qirsh.
The questioner : No, for example, I do not benefit from it, but can I build a mosque with it?
The Shaykh : No, a mosque is not built with dirty, impure money. Rather, it is for public utilities. Do you understand what public utilities are?
The questioner : Can I give it to charitable associations?
The Shaykh : No, no. I am asking you, do you understand what public utilities are? No, public utilities are everything that the general public benefits from. For example, if we imagine a poor village whose people are in need of paving a road for it, or for example, bringing water to it, or similar benefits that the general public benefits from, this is among the public utilities.
The questioner : Yes, meaning the rich and the poor, the needy and the non-needy all benefit from it.
The Shaykh : Well done.
The questioner : As for directing it to a specific needy group, this is not permissible.
The Shaykh : It is not permissible.
The questioner : Okay, may Allah reward you with good.
The Shaykh : And you, my brother.
The questioner : Goodbye.
The Shaykh : And do not forget to say the salam.
The questioner : Peace be upon you.
The Shaykh : Well done, and upon you be peace and the mercy of Allah. And upon you be peace and the mercy of Allah. Praise be to Allah, all is well.
The questioner : May Allah keep you safe.
The Shaykh : Please.
Source
سلسلة الهدى والنور، رقم 123 في قناة «تسجيلات الإمام الألباني - محمد أبو ليلى الأثري» — youtube.com (6:55)
The Arabic text is a machine transcription of the audio recording.