Is a supplementary retirement plan in employment considered usury?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The governmental retirement system is permissible if the subscribers' funds are not placed in interest-based banks or invested in prohibited activities, and if the solidarity is optional, it must be abandoned if there are impermissible elements. However, if it is mandatory, the subscriber must dispose of the percentage of money equivalent to the usurious interest upon receipt. The retirement system for private companies is not permissible due to its inclusion of (excessive uncertainty). Supplementary retirement is permissible if the original system is permissible, as it is a payment of installments before their due date.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/37457
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 37457
- 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