What is the ruling on the insurance project undertaken by the company, which deducts a monthly sum from the salary, to be returned as a larger amount after 15 years?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The issue can be summarized in two scenarios:
1. If the company mandatorily deducts a portion of the salary and deposits it in an interest-bearing bank, this is prohibited usury (riba), but there is no sin upon the employee. The employee should only take what he originally paid after the specified period and dispose of any excess. 2. If the company deducts a portion of the salary as a loan at the employee's discretion and does not deposit it in an interest-bearing bank, then there is no harm in that, as long as any increase paid after the specified period is not a stipulated 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/51393
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 51393
- 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