Question :

We are the management panel of a certain company`s staff provident fund. We collect payments from the employees subscribing to this fund. We use these amounts in business to make profit. We grant interest-free loans to subscribers from their savings up to (70%). In order to achieve justice amongst subscribers, the panel intends to exclude the uncovered payments of these loans from the calculation of the annual profits. What is the ruling of Sharia on this?

The Answer :

Praise be to Allah the Lord of the Worlds.

After reviewing the suggested article and the system of the staff provident fund, it was made clear that the fund saves subscriptions and uses them in business, then divides the annual profits amongst the employees/subscribers. We see no harm in adding the above condition to the system of the staff provident fund of your company to achieve justice amongst the subscribers through which each collects profits based on the actual amounts that he has contributed to the fund. And Allah the Almighty knows best.