Shari‘ah Ruling on Receiving Salaries Through Interest-Based Banks
✍ Written by: Saudi Fatwa Committee (Fatāwā al-Lajnah ad-Dā'imah)
There is no harm in receiving salaries through interest-based banks. The transaction is not impermissible, because:
✔ The employee does not deposit money for the purpose of usury.
✔ The government deposits the salary for safekeeping, so that the employee may receive his payment.
Similarly, transferring money from one city or country to another via banks is also permissible due to genuine necessity.
Prohibition applies only when:
➤ The funds are used in usurious dealings,
➤ Or assistance is provided in usurious transactions.
However, if there is no alternative means and money is deposited in the bank for safekeeping or for a legitimate non-usurious purpose, or for transfer, then there is no harm, In Shā Allah.
If the government arranges to disburse salaries through means other than interest-based banks, then that would be better and safer.
(Reference: Ibn Bāz – Majmūʿ al-Fatāwā wa al-Maqālāt, 19/251)
✍ Written by: Saudi Fatwa Committee (Fatāwā al-Lajnah ad-Dā'imah)
✦ Receiving Salaries Through Interest-Based Banks
There is no harm in receiving salaries through interest-based banks. The transaction is not impermissible, because:
✔ The employee does not deposit money for the purpose of usury.
✔ The government deposits the salary for safekeeping, so that the employee may receive his payment.
Similarly, transferring money from one city or country to another via banks is also permissible due to genuine necessity.
✦ What is Prohibited?
Prohibition applies only when:
➤ The funds are used in usurious dealings,
➤ Or assistance is provided in usurious transactions.
However, if there is no alternative means and money is deposited in the bank for safekeeping or for a legitimate non-usurious purpose, or for transfer, then there is no harm, In Shā Allah.
✦ A Better Alternative
If the government arranges to disburse salaries through means other than interest-based banks, then that would be better and safer.
(Reference: Ibn Bāz – Majmūʿ al-Fatāwā wa al-Maqālāt, 19/251)
