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Percentage based commission

Answered according to Hanafi Fiqh by Muftionline.co.za

Q: Is this kind of shart halaal in a business contract? Earnings and commissions: Commission will be percentage based and in hierarchical order subject to change. Depending on monthly sales, commission will range from 5% to 10%. Commission amounts will be calculated at the end of every month based on sales as follows:

R0 to R5000 at 5%

5001 to 10000 at 7.5%

10000 and above at 10%

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A: If the commission is fixed and the agent knows exactly the amount he will be receiving without any ambiguity, it will be permissible.

And Allah Ta’ala (الله تعالى) knows best.

 

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)

This answer was collected from MuftiOnline.co.za, where the questions have been answered by Mufti Zakaria Makada (Hafizahullah), who is currently a senior lecturer in the science of Hadith and Fiqh at Madrasah Ta’leemuddeen, Isipingo Beach, South Africa.

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