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Is my salary from a payroll processing company halal?

Answered as per Hanafi Fiqh by Darulifta-Deoband.com
I work for a MNC as a software engineer. I work for payroll domain. So it does not involve any types of interest based transaction and I am not involved in any type of interest calculation. I have to generate only tax reports. But I have a doubt on my company. Actually, tax structure in US is very complicated so companies do not process payroll for their employees by themselves but assign it to payroll processing companies. Our company is also one of the payroll processing company. So they will get the money for the clients, deduct the tax and generate the pay-slips and tax reports and deposit the salary in the employees account. So if the salary date is 30th of November. They will ask the clients to deposit the money few days earlier say 26th of November. And this way earn the interest on the money of client. So my my earning is halal?

Answer

(Fatwa: 967/965/N=1433)

If the owner of your company is non-Muslim then the salary which you derive on your service is lawful and halal absolutely for you as the interest which a non-Muslim gets is halal for him and he becomes its owner (Baqiyat Fatawa Rashidiya p. 227 and Azizul Fatawa p. 598). And there will not come any malice due to earning interest from other’s money as that money has come under the risk of non-Muslim (owner of the company). But if the owner of the company is Muslim then it is wajib for him to give this interest money in charity. And in this case if the company gives you salary without the explanation of interest and does not reveal to you that the money which is given to you contains so and so money of interest – it is obvious that the company does not tell rather it is not necessary that it pays you the salary with interest money – then too your salary shall be lawful and acceptable. Do not have any doubt regarding your salary.

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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