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Is the target system (setting a specific sales goal to be achieved within a defined period, with the threat of dismissal upon failure to achieve it, or deferring some sales representatives' sales to the following month for fear of increasing the target) permissible or forbidden, and is it considered a predetermination of livelihood?

1 min readAlso available in العربية

There is no harm in encouraging employees to achieve a certain sales target and incentivizing them with gifts and bonuses, provided that the employee's salary is fixed and known. It is not permissible to deduct from an employee's salary if they do not meet the required target, as this leads to uncertainty regarding their wage, which invalidates the contract. It is permissible for an employee to have a fixed salary plus a percentage of sales to motivate and encourage them, and this is a view held by some of the Salaf. If the contract is for a specific period, it is not permissible to dismiss the employee during that period for not achieving the required target. The principle is that the employee should be informed of the reality, so it is not permissible for them to carry over achievements from one month to another. The mentioned system may involve injustice to the employee and may tempt them to betray trust, and it may be invalid if it leads to uncertainty of the wage. The legitimate alternative is to agree on a fixed wage with a percentage given for incentive.

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

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