I am employed in an organization where monthly deductions are made from my salary in the name of Gratuity and Pension Funds (GPF). These funds are given back to the employee at the time of retirement. The employer invests these funds . There are 2 categories of GPF i.e. interest bearing and non -interest bearing. But at the end the employer invest the funds in the same place, collected in both categories.
Employees have a option to withdraw amount as loan from these funds (if they want to use this money before retirement). If the employee has selected interest bearing GPF he will have to pay interest on the withdrawn amount and if he/she has selected non-interest bearing GPF interest does not have to be paid on the withdrawn amount. Kindly clarify which GPF should the employee opt for or should this be avaoided altogether. One additional detail is that GPF is not the ownership of the employee and he has no rights with respect to investment in these funds.
الجواب وباللہ التوفیق
If the G.P. Fund account is not at your discretion and the deduction from your salary is mandatory then it is permissible and the extra money received on it in the name of interest is not interest. To take that extra money is permissible. If the employee however, with his discretion deposits additional money in the account then it is considered impermissible. It is permissible for him to take only the amount which was deducted from his salary, the extra amount he would receive is doubtful as being interest in addition to the risk of getting involved in interest later, therefore, it is necessary to give such additional money as sadaqah.
عن علي رضي اللّٰہ عنہ کل قرض جر منفعۃ فہو ربا، وکل قرض شرط فیہ الزیادۃ، فہو حرام بلا خلاف۔ (إعلاء السنن ۱۴؍۴۹۹ دار الکتب العلمیۃ بیروت)
کل قرض جر نفعًا حرام۔ (شامي ۵؍۱۶۶ کراچی)
الأجر لا یلزم بالعقد؛ بل بتعجیلہ أو شرطہ في الإجارۃ أو بالاستیفاء للمنفعۃ۔ (تنویر الأبصار مع الشامي ۹؍۱۳-۱۴ زکریا)
فقط واللہ اعلم بالصواب