{"id":21572,"date":"2021-04-17T18:12:13","date_gmt":"2021-04-17T18:12:13","guid":{"rendered":"http:\/\/daruliftabirmingham.co.uk\/?p=21572"},"modified":"2021-04-17T18:14:41","modified_gmt":"2021-04-17T18:14:41","slug":"is-a-voluntary-provident-fund-vpf-allowed-in-the-shariah","status":"publish","type":"post","link":"https:\/\/daruliftabirmingham.co.uk\/home\/is-a-voluntary-provident-fund-vpf-allowed-in-the-shariah\/","title":{"rendered":"Is a Voluntary Provident Fund (VPF) Allowed in the Shariah"},"content":{"rendered":"

Fatwa ID: 05248<\/strong><\/span><\/p>\n

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Answered by: Mufti Eunus Ali\u00a0<\/strong><\/span><\/p>\n

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Question<\/u><\/strong><\/span><\/p>\n

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Assalamu Alaikum. I am working in a company where they are deducting 12% of my salary as PF. And I have an option to make this 12% to 24 or 36 i..e VPF. Is this allowed in Islamic Shariah? And it is also useful for income tax saving purposes. At retirement, they will give some extra amount with my actual saving. Please sort out this problem I am totally confused than you.<\/span><\/p>\n

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In the name of Allah, the Most Gracious, the Most Merciful<\/u><\/strong><\/span><\/p>\n

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Answer<\/u><\/span><\/strong><\/h1>\n

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Allah states in the Quran, \u201cAllah has permitted transactions and has forbidden riba (interest)\u201d (Surah Al Baqarah v.275)<\/span><\/p>\n

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It is narrated by Abdullah Ibn Mas’ud (may Allah be pleased with him): The Messenger of Allah (\ufdfa) cursed the one who accepted usury, the one who paid it, the witness to it, and the one who recorded it. (Sunan Abi Dawood: 3333)<\/span><\/p>\n

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It is evident from the above-mentioned verse and hadith that involvement in riba (interest) is haram and must be avoided at all cost.<\/span><\/p>\n

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In regards to your question, as the Voluntary Provident Fund (VPF) scheme attracts interest in the payout to those who sign up for it, it will not be permissible due to the above verse and Hadith.<\/span><\/p>\n

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As it is a voluntary contribution it will need to be avoided.<\/span><\/p>\n

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Only Allah knows best<\/span><\/p>\n

Written by Mufti Eunus Ali<\/span><\/p>\n

Checked and approved by Mufti Mohammed Tosir Miah<\/span><\/p>\n

Darul Ifta Birmingham<\/span><\/p>\n

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Fatwa ID: 05248   Answered by: Mufti Eunus Ali\u00a0   Question   Assalamu Alaikum. I am working in a company where they are deducting 12%…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[17],"tags":[],"_links":{"self":[{"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts\/21572"}],"collection":[{"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/comments?post=21572"}],"version-history":[{"count":5,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts\/21572\/revisions"}],"predecessor-version":[{"id":21594,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts\/21572\/revisions\/21594"}],"wp:attachment":[{"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/media?parent=21572"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/categories?post=21572"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/tags?post=21572"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}