What is the ruling on compensating employees for delayed salaries at a rate of 1% for each day of delay, and what is the optimal way to dispose of it?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
It is not permissible to stipulate an increase on a fixed financial right owed in exchange for delayed payment, because it is a form of usury, as stated by the Fiqh academies. What the creditor pays to the lawyer to protect his money cannot be imposed on the debtor, as that falls under the usury of Jahiliyyah, which is an increase in exchange for delay, and this is a void and invalid condition.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/168791
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- Ftawy
- Original fatwa ID
- 168791
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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