Is this partnership, in which employees pay 60% of the profits after covering costs and rent, and the employer takes 40%, with the employer reimbursing the rent previously paid by the employees at the end of the year, legitimate in Islam?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Scholars differed on the permissibility of the wage being a percentage of the profit. The majority of scholars prohibit it because the wage is unknown, citing the Prophet's (peace be upon him) prohibition of hiring a worker until his wage is known. However, the Hanbalis consider it permissible by analogy with musaqat (sharecropping in irrigating) and muzara'ah (sharecropping in cultivation). Ibn al-Qayyim views it as a form of partnership, not (leasing/hiring), and Ahmad explicitly stated this.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/193904
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 193904
- 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