Government deductions from salaries

31-8-2005 | IslamWeb

Question:

Work in a company dealing in petroleum, the company collects P.A.Y.E from its employees and remits to the government up to 30% of employees' salary. Is it acceptable in Shariah for the company to deduct such much from the employees to be remitted to the government monthly?

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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 is His slave and Messenger. We ask Allaah to exalt his mention as well as that of his family and all his companions.

 

Deducting a part of employees' wages for the government is what is called taxes. We have already issued many Fataawa clarifying the ruling on the issue when it is permissible for the government to deduct such wages and when it is not permissible. We also clarified the ruling on avoiding paying taxes. So please refer to Fataawa: 89947, 82392, 82251, 84560 and 85356 for details.

On the other hand, if (P.A.Y.E) means something other than taxes, then the respected questioner is kindly requested to clarify for us what it means. 

Allaah Knows best.