Impermissibility to deduct money in case of not achieving a target
Fatwa No: 32050

Question

I work as a receptionist in the field of furnished apartments. The administration obliges me to achieve a target to give me a commission. However, this system has been changed and if I do not achieve the specified amount of money during the month, then 1% of the deficit will be deducted from my salary. However, they give me 0.007% as incentive in case of achieving the specified amount of money. Is this permissible under Sharee‘ah? May Allaah Reward you.

Answer

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His Slave and Messenger.

In principle, the transaction is permissible if there is no deduction because this act is impermissible and represents consuming people’s wealth unjustly. The expected situation will be one of two cases: either deserving the stated commission because of achieving the target amount of money or not deserving it because of not achieving that target. However, deducting an amount of money as a punishment for not achieving the target is not permissible because it is a form of injustice. Allaah Almighty Says (what means): {O you who have believed, do not consume one another's wealth unjustly.} [Quran 4:29]

Allaah Knows best.

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