Incentives from the company if the employee sells more goods

13-9-2005 | IslamWeb

Question:

I am working in sales department and I sell approximately 10% of the computers on finance which is done by another company, its just a facilitator. My company deals only in computers and the finance part is done by other company, and sometimes our company announces extra incentives like if we do more than 17% business on finance they will give extra 2500 rupees in the salary. This is given by our company and not by the finance company. Please advise whether this extra money is Halaal or shall I have to discard this salary as Haraam.

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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.

 

There is no harm in accepting the incentives that the company gives to the employees in order to incite them for more effort or to obtain more profit.

However, it should be noted that if the financing system that the purchasing company deals with involves Ribaa (i.e. usury or interest) then it is not permissible to facilitate for it the procedures of purchase, as if one does so, he is helping them in Ribaa. Indeed Allaah Says (which means): {Help you one another in virtue, righteousness and piety but do not help one another in sin and transgression. And fear Allaah. Verily, Allaah is Severe in punishment.}[Quran 5:2].

The financing with Ribaa is as follows: the company pays the price of goods for a given customer, and then it orders him to repay by instalments with an interest in return for the delay in payments, and they call this increase in price a profit. But indeed this is nothing but a contract with Ribaa and it is forbidden in Islam.

Allaah Knows best.