Fatwa ID: 08986
Answered by Maulana Abdurrahman Persaud
Question:
I received a job offer from a government company that requires participation in a Provident Fund with three parts:
Account 1: 12% monthly employer contribution (mandatory)
Account 2: 5% monthly employee contribution (mandatory)
Account 3: Optional voluntary employee contribution
Employees then choose how to invest these funds through a financial advisor, and the company offers Shariah-compliant bonds and funds. When leaving the company, the Provident Fund balance is paid out.
Is participating in this mandatory Provident Fund and investing only in Shariah-compliant options permissible in Islam, and is receiving the payout upon leaving the company halal? I want to make my decision by Monday and avoid any financial arrangement that may be sinful.
In the name of Allah, the Most Gracious, the Most Merciful
Answer:
Participating in the mandatory provident fund will be allowed in this case, since investment will be made in Sharia-compliant avenues.
Likewise, payouts made by the company will be allowed. The contribution made by the company is considered to be a gift which distinguishes such schemes from insurances.[1]
Sharia legal ownership is not established until possession takes place, so when a mandatory deduction is made to your salary possession does not take place, so receiving it would be like a gift from the company.[2]
As for the optional contribution it is advisable to stay away from such investment since it has a close resemblance to interest based.
Only Allah ﷻ knows best.
Written by Maulana Abdurrahman Persaud
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham
References:
[1]
ص96 – اللباب في شرح الكتاب – (والأجرة لا تجب بالعقد) فلا يجب تسليمها به (و) إنما (تستحق بأحد معان ثلاثة: إما بشرط التعجيل) وقت العقد، لأنه شرط لازم (أو بالتعجيل من غير شرط) بأن يعطيه حالا، فإنه يكون هو الواجب، حتى لا يكون له الاسترداد (أو باستيفاء المعقود عليه) ، لأنها عقد معاوضة، فإذا استوفى المنفعة استحق عليه البدل. – المكتبة الشاملة
[2]
ص300 – البحر الرائق شرح كنز الدقائق ومنحة الخالق وتكملة الطوري – قَوْلُهُ بَلْ بِالتَّعْجِيلِ أَوْ بِشَرْطِهِ أَوْ بِالِاسْتِيفَاءِ أَوْ بِالتَّمَكُّنِ) يَعْنِي لَا يَمْلِكُ الْأُجْرَةَ إلَّا بِوَاحِدٍ مِنْ هَذِهِ الْأَرْبَعَةِ وَالْمُرَادُ أَنَّهُ لَا يَسْتَحِقُّهَا الْمُؤَجِّرُ إلَّا بِذَلِكَ كَمَا أَشَارَ إلَيْهِ الْقُدُورِيُّ فِي مُخْتَصَرِهِ لِأَنَّهَا لَوْ كَانَتْ دَيْنًا لَا يُقَالُ أَنَّهُ مَلَكَهُ الْمُؤَجِّرُ قَبْلَ قَبْضِهِ وَإِذَا اسْتَحَقَّهَا الْمُؤَجِّرُ قَبْلَ قَبْضِهَا فَلَهُ الْمُطَالَبَةُ بِهَا وَحُبِسَ الْمُسْتَأْجِرُ عَلَيْهَا وَحُبِسَ الْعَيْنُ عَنْهُ وَلَهُ حَقُّ الْفَسْخِ إنْ لَمْ يُعَجِّلْ لَهُ الْمُسْتَأْجِرُ كَذَا فِي الْمُحِيطِ لَكِنْ لَيْسَ لَهُ بَيْعُهَا قَبْلَ قَبْضِهَا وَأَشَارَ الْمُصَنِّفُ – المكتبة الشاملة