Is it permissible for business partners in Mudarabah companies to receive a wage along with a percentage of the profit if they agree to that with the capital partners? And if it is permissible, how is the salary distributed if they are equal in work but differ in percentages?
If the agreement between the workers and the capital owners stipulates that the worker receives a fixed wage and a percentage of the profit, then this (profit-sharing partnership) is invalid. The worker must be entitled to a common share of the profit (such as a half, a quarter, or a third), not a specified sum of money or a percentage along with a specified sum of money. Consequently, this partnership is void. If it is void, the worker is entitled to a fair wage (similar to what others in the same profession would earn), and the entire profit belongs to the capital owner.
As stated in Al-Mughni: "All the profit belongs to the capital owner, because it is the growth of his wealth. The worker is entitled to a share only by virtue of the condition. So, if the mudarabah is invalid, the condition becomes void, and he is not entitled to anything from it. However, he is entitled to a fair wage."
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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