Fatwa ID: 07970

Answered by Maulana Sheik Abdel Ahaad Imrit

Question:

I’m looking for Fatāwā on the Mudārib and Sharīk earning a monthly salary?

In the name of Allah, the Most Gracious, the Most Merciful

Answer:

Drawing a salary from your company is allowed under certain conditions:

1) You must have a separate employment agreement outlining your job description, working hours, and salary. This agreement should be distinct from your contract and shareholding responsibilities as a director.

2) Your salary should not be contingent upon the dividends you receive or retain within the business. Instead, it should be based on the work you perform, regardless of the company’s profits or losses.[1]

For the detailed fatwa regarding the issue you may check Fatawa Darul Uloom Zakariyya Vol5, pg.751-754 ZamZam Publish

Only Allah (عز و جل) knows best.

Written by Maulana Sheik Abdel Ahaad Imrit

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

[1] https://darulfiqh.com/can-a-director-of-a-limited-company-draw-a-regular-salary-along-with-dividends-2/