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Is it permissible to combine a fixed salary with a 10% share of annual profits in exchange for management and development, and is this considered Mudarabah?

1 min readAlso available in العربية

It is permissible to combine a fixed salary and a commission if each has an independent function, such as one contract being for a fixed wage and the other for a commission. There is no harm in this, as long as the institution is agreeable. The Hanbalis and some of the Salaf have held it permissible for the wage to be a percentage of the profit, likening it to musaqat (sharecropping of trees) and muzara'ah (sharecropping of land).

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

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