Praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.
Caring for citizens and managing their affairs is a duty upon the state, to the best of its capacity and ability. Social Security is part of performing this duty, as this system provides a guarantee for citizens who have advanced in age and meet the stipulated conditions. The Social Security system is based on the principle of mutual guarantee (Takāful), cooperation, and donation (Tabarru'). As such, it falls under the scope of Allah's (The Most High) saying {which means}: "And cooperate in righteousness and piety, but do not cooperate in sin and aggression."[Al-Mā'idah/2].
Therefore, there is no religious objection to paying the required financial contributions to obtain the Social Security pension, whether the payment is made promptly or in installments. Even if an increase is incurred on the amount paid due to the installment plan, this increase is not considered Ribā. This is because the Social Security contract is a contract of benevolence and assistance (Irfāq wa Iḥsān), not a contract of trade ('Aqd Tijārah). In Islamic jurisprudence, a person who contributes to Social Security is not fundamentally classified as a debtor to the fund. Consequently, any increase requested over the original contribution amount is not classified as usurious interest (Fā'idah Ribawiyyah) on a late debt. Rather, the situation is classified such that what the person wishing to complete their contributions pays (the installment plus the increase resulting from calculating subsequent years) is considered a new contribution founded on the principles of mutual guarantee and cooperation.
Accordingly, there is no religious objection to benefiting from Social Security pensions, and the increase imposed on the contributor is not considered forbidden Ribā, because Ribā occurs in compensatory debts and loans, while the Social Security system is based on the principle of mutual guarantee, cooperation, and benevolence. And Allah (The Most High) knows best.
