Is it permissible to participate in a pension plan where the company invests a portion of the salary in insurance companies under certain conditions, including that the return must not be less than 4%?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The aforementioned contract is impermissible for two reasons: The first is that the amounts deducted from employees are invested in an insurance company, and commercial insurance is prohibited. Investing in it is also prohibited, unless the company has a permissible investment activity in which it adheres to Shariah guidelines. The second reason is that the capital is guaranteed in this scenario, which transforms the issue from a permissible into a usurious loan.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/83782
Where this answer came from
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- Ftawy
- Original fatwa ID
- 83782
- 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