What is the ruling on the money an employee receives after retirement, given that this money comes from a deduction from his salary during his employment, plus an addition by the state?
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The questioner : Regarding the retirement of employees, once an employee completes twenty years, he is entitled to retirement; that is, he leaves his job and they grant him a salary. This salary is... they have a method... twenty years of the employee's basic salary. They had previously taken money from them, six or seven dinars each month. This is mandatory, not optional.
The Shaykh : The taking?
The questioner : The taking is mandatory.
The Shaykh: All right.
The questioner : It is not optional, and in the end, after you leave, you receive a retirement salary of, for example, according to the rank... but is this salary valid or not? They take money from him previously, and they complete the amount from their side, as employees, they complete from their side on this amount; so that they pay you a monthly salary until the last beneficiary passes away...
The Shaykh : There is no doubt that the issue has two aspects: the first aspect.
The student : ...retirement.
The Shaykh : There is no doubt that the issue has two aspects, and one of them is clearly a right and lawful for the retiree. If we suppose that an employee worked in his position for a certain number of years, and the total amount deducted from his salary was, for example, five thousand; then this part does not require questioning or hesitation that it is lawful. The remaining part, or the second part, is the subject of the inquiry: he is entitled to this money, five thousand, so how did they add to the five thousand...? These added and large amounts, if they are not the result of their operating the saved salary deducted from his income through riba (usury or interest), but rather a grant and assistance from the state to the one who worked for the state's benefit, then there is nothing wrong with it.
The questioner : There is no doubt that the grant is occurring, but this deducted money, there is no doubt that the ministry operates it. But if they operated it with this amount, its profits could not reach these sums that they give to the employee; so there is doubt in it, but the rest is a grant from the state that covers the remainder...
The Shaykh : Yes, in my opinion, whoever has a connection with the state can know what percentage is added to the money deducted from the teacher's salary, the riba (usury or interest) percentage that is added; for example, five percent. In this case, the one who receives this salary deducts this percentage from it and spends it as we say in such cases in public utilities.
The Shaykh : The taking?
The questioner : The taking is mandatory.
The Shaykh: All right.
The questioner : It is not optional, and in the end, after you leave, you receive a retirement salary of, for example, according to the rank... but is this salary valid or not? They take money from him previously, and they complete the amount from their side, as employees, they complete from their side on this amount; so that they pay you a monthly salary until the last beneficiary passes away...
The Shaykh : There is no doubt that the issue has two aspects: the first aspect.
The student : ...retirement.
The Shaykh : There is no doubt that the issue has two aspects, and one of them is clearly a right and lawful for the retiree. If we suppose that an employee worked in his position for a certain number of years, and the total amount deducted from his salary was, for example, five thousand; then this part does not require questioning or hesitation that it is lawful. The remaining part, or the second part, is the subject of the inquiry: he is entitled to this money, five thousand, so how did they add to the five thousand...? These added and large amounts, if they are not the result of their operating the saved salary deducted from his income through riba (usury or interest), but rather a grant and assistance from the state to the one who worked for the state's benefit, then there is nothing wrong with it.
The questioner : There is no doubt that the grant is occurring, but this deducted money, there is no doubt that the ministry operates it. But if they operated it with this amount, its profits could not reach these sums that they give to the employee; so there is doubt in it, but the rest is a grant from the state that covers the remainder...
The Shaykh : Yes, in my opinion, whoever has a connection with the state can know what percentage is added to the money deducted from the teacher's salary, the riba (usury or interest) percentage that is added; for example, five percent. In this case, the one who receives this salary deducts this percentage from it and spends it as we say in such cases in public utilities.
Source
www.al-albany.com
The Arabic text is copied verbatim from the original source, without any edits.