Is my employer’s pension scheme permissible?

Answered according to Hanafi Fiqh by


Muhtaram Hazrat.

I am wishing to enrol for my employer’s pension scheme. However, I would like confirmation first to ensure it is halal.

I contribute 10%, and my employer matches it. I believe this is permissable, as it would be considered a gift?

It’s really the investment aspect that needs to be reviewed. I invest in the HSBC Amanah fund, and it states it is shariah compliant, but of course from my perspective this needs to be confirmed.

I have all the material ready, but fear you might refuse, as I suspect it would take hours to review.

Let me know Hazrat.


In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

The mentioned employer’s pension scheme will be permissible if the contributions and returns are both a fixed amount. The fixed 10% that is contributed by the employer will be regarded as a Hiba (gift).

We are unaware of the Shariah compliancy of the HSBC Amanah fund. You may find out from a reliable local Mufti.

And Allah Ta’āla Knows Best

Mufti Arshad Ali

Darul Iftaa, Jaamia Madinatul Uloom (Trinidad)

This answer was collected from, which is operated by the Darul Iftaa of Jaamia Madinatul Uloom (Trinidad and Tobago) under the advice and guidance of Mufti Ebrahim Desai (Daamat Barakaatuhum) of South Africa.

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