Lessons from the Birth ... Date Added: 19-11-2018

The Day of Ashura' Date Added: 19-09-2018

Inspirations from Hijrah Date Added: 16-09-2018

General Iftaa` Department ... Date Added: 06-09-2018

The Four Schools of Islamic ... Date Added: 30-09-2019

The Culture of Building Date Added: 03-02-2019

Mawlid: Revival of the ... Date Added: 19-11-2018

Glimpses on the Birth of ... Date Added: 19-11-2018


Fatwa Number : 3513

Subject : Ruling on Contributing in Pension Fund of Jordan Agricultural Engineers Association

Classified : Current Financial Issues

Fatwa Type : Search Fatawaa

Question :

What is the ruling of Sharia on contributing in the pension fund of the Jordan Agricultural Engineers Association, (see enclosed copy of pension system)?

The Answer :

Praise be to Allah the Lord of the Worlds.

Funds established by different parties, public or private, embody a form of social solidarity encouraged by society. Actually, paid contributions are donations, yet they are conditional and this is permissible in Sharia.

The enclosed pension system referred to above is cooperative insurance and it is permissible by consensus of the majority of modern jurists. It rests on cooperating in risk taking and it doesn`t fall within the framework of pure financial netting. This way, delay penalties imposed on late contributions aren`t usurious, because usury is embodied in pure financial netting contracts as well as usurious loans and debts; whereas, cooperative insurance doesn`t fall under any of these.

In conclusion, delay penalties taken by the above Fund aren`t usurious. Therefore, it is permissible to contribute in that Fund. And Allah the Almighty knows best.



Name *

E. mail Address *


Comment Title *

Comment *


Warning: this window is not dedicated to receive religious questions, but to comment on topics published for the benefit of the site administrators—and not for publication. We are pleased to receive religious questions in the section "Send Your Question". So we apologize to readers for not answering any questions through this window of "Comments" for the sake of work organization. Thank you.