What is the ruling on a monthly salary and bonus from a usurious bank and investing it in a permissible business?
The ruling concerning the end-of-service bonus and retirement pension from a Riba-based bank is no different from the salary one received while working there. Therefore, one must dispose of it by spending it on the welfare of Muslims or giving it to the poor and needy. It is not permissible to take from it except for the poor and needy person, to the extent of his need and the need of those he supports. Some scholars permit giving a poor person who has repented from unlawful earnings a capital sum from it to earn a livelihood. However, if it is not permissible to take from it, then the monthly salary and the capital sum must be spent on charitable causes, and the profits from the project are permissible.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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