You Get Rid of the Surplus Amount of Profit Only
Fatwa No: 384283

Question

Assalamu AlaykumI live in a western country whereby it is compulsory by law for working people to set aside a percentage of their earnings in a 'superannuation' fund, only accessible upon retirement. The companies managing these funds invest in different sectors, some halal and others not (eg tobacco)When I first started working, a small amount of money was deposited into these companies as part of my contract (approx $400). This amount over the years increased and decreased depending on the yearly gains or losses.This money may or may not have accrued interest or profit from unethical investments. I do not know the exact investment dealings of that company, but i do not believe it to be islamically compliant. A few years later i transferred this amount to an islamic superannuation company and added an extra amount (roughly $600). A yearly administration fee of approximately $100 is deducted from my balance to maintain this compulsory account. The amount in this account is being invested in an islamic business. My question is, if I want to purify my current balance in the islamic superannuation account (total of approximately $900), how do I do that? There is no gaurantee that I will ever receive this money as it may be consumed by adminstration fees, or decrease subject to business losses etc over the years? How do I separate the halal income (eg my capital and profit made from investment) from any interest (which would have also been invested as the entire amount is transferred into the new account). If we for eg assume that the original $400 had $100 of interest, do I need to remove pay $100 as sadaqah as well as 1/9th of any profit made over the years in the new account? Or can I just pay $100?May Allah reward you

Answer

All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) is His slave and Messenger.

The bottom line here is that if you give out the surplus amount of profit from what is taken from you, whose impressibility you doubt about that it came as a result of investing that amount that is deducted from you in forbidden matters, then this is enough a precaution from consuming what you suspect to be forbidden.

Your capital money is lawful for you, but you get rid of the profit which you doubt about only.

Therefore, the amount that is transferred to your Islamic account is the amount that you have to look at what is in surplus of your capital money.

If we presume that the amount that is deducted from you and which you doubt that it is invested in what is forbidden is 400 only, and when it was transferred to the Islamic account it was 500, then you should give out 100 once you receive the amount and not before that because you said that you do not guarantee to receive it.

Giving out the 100 that is in excess is a form of precaution and piety only and not an obligation as we have previously clarified.

It may also be that the percentage about which you doubt is less than 100 because not all sources of investment are doubtful as you mentioned.

Allah knows best.

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