28 November 2020   12. Rabi-us-Thaani 1442

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Using Interest to pay a bonus

Q: Can Interest monies be used to pay bonuses for staff e.g. maid, gardener etc.?

A: Interest monies incidentally accrued should be given to the poor and needy without the intention of reward. Hence, if the domestic helper or gardener are needy then this can be given to them, not as payment and without the intention of reward. However, giving interest monies to an employee as a bonus that was contractually stipulated will not be valid. Such bonuses must be paid as remuneration from lawful funds. This may also be the case where there has been a general practice of paying such a bonus and there is an unwritten 'obligation' or 'expectation'.

And Allah Ta'ala Knows Best

Darul Ihsan Media Desk

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