What is the ruling on the interest (called profits) resulting from investing end-of-service benefits that are mandatorily deducted from one's salary? And how should the employee deal with these mandatory interests upon resignation?
It is not permissible to invest the fund's money except in areas that are -compliant. It is not permissible to invest in prohibited areas such as usury (riba), gambling (), and trading in unlawful goods.
Accordingly, it is not permissible to invest in usurious bonds nor in the shares of companies that engage in prohibited activities.
The usurious returns obtained from these prohibited investments are not permissible for employees to own. They must disburse them for the benefit of Muslims, such as the poor, hospitals, and schools.
However, as for the money deducted from salaries or provided as a grant from the authority, as well as the returns from permissible investments, there is no objection to benefiting from them.
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