Workplace benefits

[Faye78]

Salams Mufti,

I work in a bank and as part of my compensation profile, I receive the following benefits. Please can you confirm the halal status of these or what changes I need to make to make these halal:

1. Life Assurance - my employer pays for this and if I die, my family receive x times my salary

2. Income protection - My employer pays for this so if unable to work, I continue receiving income

3. Critical illness - I pay for this so if unable to work, I receive funds

4. Personal accident - I pay for this so if unable to work, receive funds

5. Private medical - my employer pays for this

(6. Pension which I will ask separately about)

JZ

[Mufti_Billal]

Wasalam

May Allah bless you.
If you are working for a conventional bank, then we strongly advice no to. Please see the link below:

Fatwa: Is it haram or halal to work in a bank?

This is iA the most comprehensive resource for this question on the internet. We present views from Al Qalam, IslamQA, IslamQAorg, SeekersGuidance and then our resident expert Mufti Faraz Adam presents his views, and finally IFG present a commercial perspective on the matter. View One: Al Qalam When working as an employee in a business where a major portion of the business does not conform to the dictates of Sharīʿah there are principally two issues that must be determined: Is the job itsel…

In terms of the benefits you have mentioned:

1. If it is not part of your wage then it is permissible (also see links below)

2. Same as number 1

3. Not permissible unless it is a legal requirement

4. Not permissible unless it is a legal requirement

5. Same as number 1

Employment incentives

I have a question which I hope you can answer. My employer gives me a portion of money for things like life insurance, critical illness insurance etc etc, am I allowed to take them policies?? Part of the wage package.

Personal Finance Question: Income Protection Insurance

Is income protection insurance halal?

And Allah knows best!

[Faye78]

Salams,

JZ for the advice. Why would these benefits not be halal? They are effectively a form of insurance (just like car insurance or travel insurance). Also don’t understand why private medical wouldn’t be allowed - whether paid for by the individual or the employer - this is like paying for medicines. Please can you elaborate.

Also on the call on Saturday, there was advice that the Hanafi teaching what the Role and not the Employer a son the key defining point.

JZ

[Mufti_Billal]

Insurance is haram in itself: 1) it can be tolerated in certain situation when it is a legal requirement such as car insurance. This is the most accepted view.
B) it can be tolerated based on maslaha (public interest). This is the opinion of some scholars for certain contracts such as breakdown cover. This is also my opinion. But, each insurance contract must be looked at individually before making an opinion, rather than having a general opinion on what does, or what does not fall in this category.

I believe private medical insurance does not fall in any of the two categories. So unless you are getting it for free, then it would not be valid to sign up for such scheme.

Income insurance is also the same in my opinion. I personally have thought about it many times, and I have not found any ground to see it as permissible.

I did not understand your last sentence:

Also on the call on Saturday, there was advice that the Hanafi teaching what the Role and not the Employer a son the key defining point.

And Allah knows best!

[Faye78]

AH JZ for the reply. To summarise does this mean:

1. The benefits I have listed 1 to 4 relate to money being out in the even of my death or inability to work. As such is is not (a) a legal requirement nor (b) in the public interest.

2. Benfits 1 and 2 benefits are funded by my employer - does this make a difference to being able to accept them? For example, my employer pays for the basic level and I can top up to enhance the level of cover.

3. Benfits 3 and 4 - because I pay for these through my employement, does this make it haram i.e. I should cancel these optional benefits?

4. Item 5 private medical care - this is to pay monthly for access to a private GP or treatment through BUPA - this is a fixed company benefit. Any issues on this benefit?