Government giving the employees profit from the national bank

CategoriesTrade, Business & All Things Money [552]

Retired government employees in our country deposit their commutation in a national bank where government accords a monthly profit on a fixed rate:

1. Is such profit permissible under Islam and does it fall in category of Riba?

If this profit is Riba, what is the instruction in Islam for such employees to earn their livelihood? What options do those employees have due to poor health, deteriorating physical or poor of state of mind or such a justifiable reason do not allow them to be re employed or under take a business.

In the name of Allah, the most Beneficent, the most Merciful.


The profit given by the government will be considered as a gift to the employee. It is similar to a pension scheme where the government by law decuct some of the employees salary and return the money which they have deducted along with profit to the employee when he reaches his pension. (See Nawadir Fiqh p.325 v.1)

Only Allah Knows Best

Mohammed Tosir Miah

Darul Ifta Birmingham

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