Is it permissible to participate in a pension plan where the company invests a portion of the salary in insurance companies under certain conditions, including that the return must not be less than 4%?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
The aforementioned contract is impermissible for two reasons: The first is that the amounts deducted from employees are invested in an insurance company, and commercial insurance is prohibited. Investing in it is also prohibited, unless the company has a permissible investment activity in which it adheres to Shariah guidelines. The second reason is that the capital is guaranteed in this scenario, which transforms the issue from a permissible into a usurious loan.
Summarized from the full answer at Ftawy · imported
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- 83782
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