What is the ruling of Islamic law on deducting 8% from one's salary for a "Loyalty and Belonging Fund" which pays 100 months of the last basic salary upon retirement?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
It is forbidden to subscribe to investment funds in usurious banks, even if they are commercial and not solidarity-based. One must resign immediately and take only the amount of money that was deducted. If the subscription was compulsory, then upon reaching retirement or death, only the deducted amount should be taken. Any excess is considered ill-gotten gain that must be disposed of by spending it on general Muslim welfare.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/137655
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 137655
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy