Fatwa No : 82563
A company giving interest-based profit to its employees

A company giving interest-based profit to its employees

Respected Mufti! What do the scholars of Islam say regarding the following issue that workers receiving 5% interest?
Details: According to labor laws, the company gives 5% of its annual profit to the workers. The company closes its annual accounts on June 30. Sometimes, this 5% profit is deposited into a bank in July, and sometime after mid-March, the board distributes this 5% profit, along with the interest earned in the bank from July to March, among the workers.
Until the profit is actually received, the workers have no control or ownership over it.
The question is that when the company hands over the 5% profit along with the bank interest to the board, is it permissible for the workers to take that bank interest and use it for their personal benefit?

الجوابُ حامِدا ًو مُصلیِّا ً

If the mentioned profit is deposited in the bank and interest is earned on it without any involvement or decision-making by the employees rather, the company owners deposit it in the bank on their own accord and later give it to the employees then this is not considered interest (usury) for the employees according to Islamic law. Rather, it is regarded as a part of the amount given by the company, and it is Islamically permissible for the employees to receive it.