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Are the salaries received by employees of a government company, which deposits its financial assets in banks and charges late fees and administrative expenses, subject to a suspicion of usury, knowing that most of the company's dealings are permissible?

1 min readAlso available in العربية

Depositing money in banks for interest is forbidden usury (riba), and it is not permissible to put money in usurious banks, unless there is no other place to safeguard the money. In such a case, it is permissible only in a current account, and any interest accrued should be spent on the welfare of Muslims.

The late payment penalty on installments is invalid because it is usury. Allah (the Exalted) says: "O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers... And if there is one in [financial] difficulty, then [let there be] postponement until a time of ease. But if you give [from your right as] charity, it is better for you, if you only knew."

It is not permissible to work in a company that deals with usury or late payment penalties, even if the work involves writing or transportation. However, it is permissible to work in permissible activities that have no connection to usury, but the safest course of action is to completely avoid such places.

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

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