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Is participating in the employees' insurance fund permissible or forbidden, knowing that the fund invests money and grants loans with interest, and are the monies received by the employee at the end of service forbidden?

1 min readAlso available in العربية

It is not permissible to subscribe to a fund that grants loans with usurious interest, because usurious interest is forbidden by the Qur’an, the Sunnah, and the consensus of scholars. The subscriber must withdraw from it and take what he has paid, and dispose of any increase resulting from usurious interest or unlawful activity. It is permissible to establish a cooperative solidarity fund if it is regulated by Sharia controls, so that it does not involve injustice or what is forbidden, and is based on foundations that prevent gambling and demonstrate the spirit of cooperation and solidarity.

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

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