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What is the ruling of Islamic law regarding compensating a worker for the residency fees he previously paid, and should the amount be calculated at the old price at the time of payment or at the current price after the increase in fees?

1 min readAlso available in العربية

The current company believes that the amount to be paid is the value of the fees at the time they became due, not at the present time, because this is what is fixed as a liability and is treated like fixed debts. The consideration for the value is at the time of obligation, not at the time of payment.

Ibn al-Munajjā mentioned that the consideration for the value is at the time of the loan, because that is when the debt became fixed as a liability.

As for inflation and the difference in purchasing power, the general rule for debts is to return their equivalent, even if the purchasing power changes. However, if the currency collapses or its value decreases significantly, and there is an extreme disparity (ghabn), scholars have differed on judicial rulings regarding the debt: whether it should be returned in kind or by its value.

If there is no agreement on the value, the matter is referred to the judiciary.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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