The Majlis Archive
Finance - Banking - Business The Majlis Vol 20 No 10, p.2

In a pension scheme, only the employer pays the monthly fee.

Question

In a pension scheme, only the employer pays the monthly fee. The employee is not involved in the agreement. The company pays the money after the death of the employee to his heirs. What is the Shariah's law in this regard?

Answer

If only the employer pays towards the fund, and no deductions are made from the employee's wages, the amount given to the heirs of the deceased after the death of the person, will belong to the heirs in equal shares. It will not form part of the estate of the deceased. However, if the money was given to the person before his death, then it will form part of his estate.

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The Majlis Vol 20 No 10
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