Provident Fund

Question:

Assalam-O-Alaikum,
Blessings on our Prophet(SAWS), on Siyyidi Maulana Sheikh Muhammad Nazim Al Haqqani, Shaykh Hisham and on all awliya and salihin.

I am working with a private company in Pakistan. Provident Fund (PF) is deducted every month from my salary. PF is managed by some other company. Here are the details of contribution.

1. Certain Amount (about 3 % of salary) is deducted from Employee Salary every month.
2. Same amount (about 3 % of Employee salary) is deposited by Employer in PF

When leaving the company, Employee receives PF and breakup of PF is provided with following details:
1. Employee Contribution: X Amount
2. Employer Contribution : Y Amount (Same as X)
3. Interest: Z Amount

My question is about amount (3.). Since it is cumulative interest on both, what should I do with the interest amount.

Answer:

A`udhu billahi min ash-shaytan ir-rajeem
Bismillahi ‘r-Rahmani ‘r-Raheem

wa `alaykum salam,
Interest in any form is Haram. You can distribute the interest to charities. Allahu A’lam!

Imam Senad Agic
American Islamic Center – Chicago
Majlis #1 Head Imam (IABNA)
www.aicchicago.com
www.imamsenadagic.com
www.iabna.org

This entry was posted in Halal & Haram and tagged , , . Bookmark the permalink.

Comments are closed.