Written by: Sheikh Mubashir Ahmad Rabani Hafizahullah
We, the government employees, are involved with the GP Fund. Is it permissible according to Islamic Shariah?
Answer:
The GP Fund refers to the amount deducted monthly from the salaries of government employees by the government, which is later returned to them upon retirement with interest. According to the Qur'an and Sunnah, the extra amount received is considered usury (riba).
As Allah (SWT) says in the Qur'an:
«يَا أَيُّهَا الَّذِينَ آمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا إِنْ كُنْتُمْ مُؤْمِنِينَ ﴿278﴾ فَإِنْ لَمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِنَ اللَّهِ وَرَسُولِهِ وَإِنْ تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَالِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ ﴿279﴾ »
Translation:
"O you who have believed, fear Allah and give up what remains [due to you] from interest, if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal - [thus] you do not wrong, nor are you wronged."
From this verse, it is clear that Allah (SWT) commands the taking of the principal amount and forbids the acceptance of any excess. Furthermore, it is mentioned that taking usurious money is contrary to faith and equivalent to waging war against Allah and His Messenger (PBUH).
Similarly, in the Hadith, there is a curse upon those who take usury. Therefore, the employee can only receive the amount that was originally deducted; any extra amount is not theirs. If they accept it, they are undoubtedly consuming usury and deserve the curse.
It is well known among the governmental circles that the extra amount provided in the GP Fund is usury. As indicated in the government account forms, in Field 14, it asks whether the employee desires interest on their accumulated amount. If the employee states that they do not wish to receive interest, their accumulated amount is kept free from the taint of usury. Thus, all employees should avoid receiving this extra amount.
The Juridical Status of the GP Fund
Question:We, the government employees, are involved with the GP Fund. Is it permissible according to Islamic Shariah?
Answer:
The GP Fund refers to the amount deducted monthly from the salaries of government employees by the government, which is later returned to them upon retirement with interest. According to the Qur'an and Sunnah, the extra amount received is considered usury (riba).
As Allah (SWT) says in the Qur'an:
«يَا أَيُّهَا الَّذِينَ آمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا إِنْ كُنْتُمْ مُؤْمِنِينَ ﴿278﴾ فَإِنْ لَمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِنَ اللَّهِ وَرَسُولِهِ وَإِنْ تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَالِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ ﴿279﴾ »
Translation:
"O you who have believed, fear Allah and give up what remains [due to you] from interest, if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal - [thus] you do not wrong, nor are you wronged."
From this verse, it is clear that Allah (SWT) commands the taking of the principal amount and forbids the acceptance of any excess. Furthermore, it is mentioned that taking usurious money is contrary to faith and equivalent to waging war against Allah and His Messenger (PBUH).
Similarly, in the Hadith, there is a curse upon those who take usury. Therefore, the employee can only receive the amount that was originally deducted; any extra amount is not theirs. If they accept it, they are undoubtedly consuming usury and deserve the curse.
It is well known among the governmental circles that the extra amount provided in the GP Fund is usury. As indicated in the government account forms, in Field 14, it asks whether the employee desires interest on their accumulated amount. If the employee states that they do not wish to receive interest, their accumulated amount is kept free from the taint of usury. Thus, all employees should avoid receiving this extra amount.