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Is it valid to accept additional amount or interest for GPF beyond 8.32%?

Answered as per Hanafi Fiqh by Darulifta-Deoband.com
I am working in govt. department, It is necessary to deduct 8.32% from gross salary to GPF, govt. allows 8% interest on GPF, but I deduct more amount then 8.32 % for my future and it will be compulsory for govt. to pay interest on amount which I have willingly deducted from my gross salary, so please clarify it is valid to accept additional amount or interest, Thanks

Answer

(Fatwa: 2114/B=1710/tb=1431)

The amount which the government deducts on percentage basis from monthly salary in the name of provident fund and adds the same amount from its side in the name of interest, it is not interest as a matter of fact, rather it is gift for the good services of the employee. Hence you are allowed to take that extra amount. 

But it will not be right for you to take interest on that extra amount which you get deducted willingly on your behalf. Whatever amount the government will add it shall be interest which should be given by you in charity.

Allah (Subhana Wa Ta’ala) knows Best

Darul Ifta,
Darul Uloom Deoband

This answer was collected from the official ifta website of Darul Uloom Deoband in India.

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