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Is the company entitled to keep the difference between the bank exchange rate and the other rate (black market) when converting employees' salaries into their currency?

1 min readAlso available in العربية

The agreed-upon wage in lease contracts must be fulfilled, based on the Almighty's saying: (O you who have believed, fulfill [all] contracts), and the Prophet's (peace be upon him) saying: (Muslims are bound by their conditions), and the Almighty's saying in the Qudsi Hadith: (Three are those whose adversary I shall be on the Day of Resurrection: ... and a man who hired a laborer, took full work from him, but did not pay him his wage), and the Prophet's (peace be upon him) saying: (Give the laborer his wage before his sweat dries), which is a metaphor for the obligation of immediate payment upon completion of the work.

If it is agreed that the wage is in a foreign currency, and it cannot be sent to the country except in a local currency whose value depreciates, it can be received in the foreign currency in the company's country, or converted to the country in another currency such as the dollar. The company must comply with the employee's request to convert it into dollars, as this benefits him and does not harm the company.

If the company transfers riyals by means other than banks, such that the riyals reach the employee's country, then the salary must be paid in riyals. It is not permissible to give it in local currency at the bank's exchange rate, as this involves depreciation, injustice, and consuming wealth falsely. There is no room for the company to profit from employees' salaries. The just alternative is to transfer the riyals to the bank in dollars.

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

Read the full answer on Ftawy