Is my employer’s pension scheme permissible?



Muhtaram Hazrat.

I am wishing to enrol for my employer’s pension scheme. However, I would like confirmation first to ensure it is halal.

I contribute 10%, and my employer matches it. I believe this is permissable, as it would be considered a gift?

It’s really the investment aspect that needs to be reviewed. I invest in the HSBC Amanah fund, and it states it is shariah compliant, but of course from my perspective this needs to be confirmed.

I have all the material ready, but fear you might refuse, as I suspect it would take hours to review.

Let me know Hazrat.



In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

The mentioned employer’s pension scheme will be permissible if the contributions and returns are both a fixed amount. The fixed 10% that is contributed by the employer will be regarded as a Hiba (gift).

We are unaware of the Shariah compliancy of the HSBC Amanah fund. You may find out from a reliable local Mufti.

And Allah Ta’āla Knows Best

Mufti Arshad Ali

Darul Iftaa, Jaamia Madinatul Uloom (Trinidad) /