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Is it permissible for the Mudarib (investor/manager) to take a monthly salary from the capital, if the Mudarabah company has not made profits for two years, knowing that the capital owner has agreed to that?

1 min readAlso available in العربية

It is not permissible for either the mudarib (agent/worker) or the Rabb al-Mal (capital provider) to stipulate a fixed salary for themselves. They are only entitled to their agreed-upon share of the profit, if profit occurs. The mudaraba contract becomes invalid if one of them stipulates a fixed sum of money for himself, because this could lead to one of them taking the entire profit or a portion of the capital. Furthermore, it is essential to specify the worker's share in proportions (e.g., a percentage), because stipulating a fixed sum of money could lead to the worker becoming lax in seeking profit. If the mudaraba contract is invalidated, the profit and loss belong to the Rabb al-Mal, and the worker is entitled to ajr al-mithl (a reasonable wage for similar work). However, if the amount given to the mudarib is a loan until profits are realized, then there is no objection. Alternatively, the mudaraba contract can be dissolved, and a lease contract (ijara) can be established between the capital provider and the worker for a known wage in exchange for management.

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

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