We are employees at an agency that deducts seven percent from our salaries and adds fourteen percent, making the total twenty-one percent, and it is compensated in

The questioner : We are employees at an agency that deducts seven percent from our salaries and adds another fourteen percent, making it twenty-one percent. In one of the years, two years as I recall, we lost money in the savings because at the end of the year we lose what is worth seven percent, or eight percent, or ten percent. But in most years, we made a profit in this savings. What is the ruling on the legitimacy of this savings, and does it fall under the category of riba (usury or interest) in riba transactions? Even though we do not know in what direction they use this money—Allah knows best—but the issue of profit and loss is present; sometimes we make a profit, sometimes we lose, but the issue of profit is more frequent than loss. The second part of the question is that these funds are not in our possession; we cannot dispose of them except in the case of one’s services... Is zakah due on these funds or is it not due? And may Allah reward you with all good?

The Shaykh : Your question contains two questions. Three? What is the first question?

The questioner : The first question is whether the savings that we receive at the end of every year, where we get profits of seven percent, eight percent, or ten percent, and we were exposed to a loss twice—I do not know if it is due to the fluctuation of the dinar and the dollar, or because of the investment by the investor...?

The Shaykh : Leave the loss aside for now...

The questioner : We... the money from our savings, we do not know the forms of its investment. Is it in bonds? Is it in real estate? We do not know how they invest it, but at the end of every year we receive profits, and sometimes we lose.

The Shaykh : Trading with funds... do you know?

The questioner : I do not know... they say there are investments that lose and make a profit...

The Shaykh : The method of depositing in the bank, this is well known... please proceed.
Famous: The investment, as I learned from the responsible professors... the agency elects a committee. This matter occurs frequently. The question is from one of the good brothers who seeks to distinguish the halal from the haram. After questions and investigation and such, and he was the one responsible for the committee, he said the investment comes through two methods. The first method is the bulk purchase of currencies, which may profit or lose through the currency. The second method is depositing in the bank through riba (usury or interest)?

The Shaykh : ... call it invalid. From which aspect is this investment that you are referring to? It is not permissible if you have, for example, a fixed salary... for the job only and not for investment... and anything beyond that is not permissible because you have learned the method of investment through... and not through trade and mudarabah (profit-sharing partnership) and buying assets, which may profit and may lose... as you heard just now. Therefore, as Allah the Exalted said:
Abu Malik: ...

The Shaykh : And this is the problem of all the departments that deal with such transactions.

The Shaykh : ... .