❀ Ruling on Interest from Provident Fund and Its Impact on Nikah ❀
Question: I work in an organization where deductions are made toward a Provident Fund, and interest is added to it. In the future, when I withdraw the funds, can I give the interest portion to the poor and consider the remaining amount purified?
Answered by: Shaykh Saeed Mujtaba Saeedi ḥafiẓahullāh & Researcher Wajid Iqbal ḥafiẓahullāh
If the interest-based amount enters your account without your intention or choice, and you did not intend to benefit from it:
Then by separating that amount, the remaining sum becomes purified, in shāʾ Allāh.
However, it is essential to understand that:
Interest (Ribā) is strictly ḥarām in all circumstances—regardless of the intention.
Even if your intention is to give the interest amount to the poor or a madrasa,
receiving it in the first place remains impermissible.
If it is known that the organization or institution deposits your money and pays interest upon it:
Then participating in such a scheme is not permissible.
✔ For government employees, the General Provident Fund (GPF) is typically mandatory, but
✔ For semi-government employees, the Provident Fund is often optional and can be canceled.
Recommendation: If possible, withdraw or opt-out of such systems to avoid any involvement with Ribā.
➤ The interest amount should not be used personally.
✔ It may be given to the poor or charitable causes without the intention of reward, solely to dispose of it.
◈ If the interest came without intention or choice, the remaining money is ḥalāl after disposal of the interest portion.
◈ Knowingly participating in an interest-based system is impermissible.
◈ The interest amount must be disposed of and not used for personal gain.
◈ If opting out of the Provident Fund is possible, it is strongly recommended.
Question: I work in an organization where deductions are made toward a Provident Fund, and interest is added to it. In the future, when I withdraw the funds, can I give the interest portion to the poor and consider the remaining amount purified?
Answered by: Shaykh Saeed Mujtaba Saeedi ḥafiẓahullāh & Researcher Wajid Iqbal ḥafiẓahullāh
❖ Ruling on Interest in Provident Fund
If the interest-based amount enters your account without your intention or choice, and you did not intend to benefit from it:
Then by separating that amount, the remaining sum becomes purified, in shāʾ Allāh.However, it is essential to understand that:
Interest (Ribā) is strictly ḥarām in all circumstances—regardless of the intention.Even if your intention is to give the interest amount to the poor or a madrasa,
receiving it in the first place remains impermissible.❖ Is It Permissible to Remain in a System That Gives Interest?
If it is known that the organization or institution deposits your money and pays interest upon it:
Then participating in such a scheme is not permissible.✔ For government employees, the General Provident Fund (GPF) is typically mandatory, but
✔ For semi-government employees, the Provident Fund is often optional and can be canceled.
Recommendation: If possible, withdraw or opt-out of such systems to avoid any involvement with Ribā.❖ What to Do With the Interest Money?
➤ The interest amount should not be used personally.
✔ It may be given to the poor or charitable causes without the intention of reward, solely to dispose of it.
✿ Summary:
◈ If the interest came without intention or choice, the remaining money is ḥalāl after disposal of the interest portion.
◈ Knowingly participating in an interest-based system is impermissible.
◈ The interest amount must be disposed of and not used for personal gain.
◈ If opting out of the Provident Fund is possible, it is strongly recommended.
