Is it permissible, from an Islamic perspective, to subscribe to an end-of-service insurance fund that invests its money in investment certificates and the stock market, knowing that the employee cannot withdraw from it before 10 years, and if he withdraws, he only takes what he paid, and if he completes 10 years, he takes what he and the company paid? And is it possible, upon withdrawal, to take only the value of the amounts paid and donate the rest, and what should be done if an Islamic violation is found?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
There is no objection to an employee setting aside a portion of their salary and the company donating an equal or greater amount to be invested for the employee upon retirement, provided that it is not placed in prohibited commercial insurance companies, and that it is invested in a permissible manner. It is not permissible to subscribe to funds that rely on usurious investment certificates, even if the subscriber intends to dispose of the usurious profits, because entering into the contract itself is prohibited. If one has subscribed before knowing of the prohibition, they must withdraw from it immediately.
Summarized from the full answer at Ftawy · imported
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- Ftawy
- Original fatwa ID
- 17683
- Imported
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