What is the Sharʿi ruling on an employees' insurance fund, given that its monthly subscriptions amount to 9% of the subscribers' salaries, the company contributes half a million Egyptian Pounds to it annually, product transport vehicles donate 10 EGP per vehicle, it is funded by the returns of deposit certificates and bank investments, it is supervised by the Insurance Supervisory Authority, 30% of its funds are mandatorily invested in National Bank of Egypt investment certificates, and the remainder optionally in Islamic banks, and the fund pays the employee upon retirement or death a 15-month bonus plus one and a half months for each year of service, and varying percentages in cases of disability, and it contributes 50% of the expenses for surgeries and disasters, with a maximum of 500 EGP per case, and membership in it is optional? And if it is permissible: what is the ruling on the fund financing the purchase of durable goods for subscribers, up to a maximum of 75% of the total deductions, with an additional 8% on the value of the goods, and is it permissible to purchase gold jewelry in installments according to the same system?
The fund's regulations stipulate investing a portion of its money in purchasing investment certificates from the National Bank, and this is a clear dealing with usury (riba).
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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