Zero Contribution Pension Halal?

Assalamu Alaikum,

My company provides some benefits to all employees by default in addition to my negotiated salary, such as life assurance, incapacity income protection, private medical insurance, and a pension with voluntary contributions.

I have read fatwas on the halal-ness of all the above, except pensions - in which case they say that it depends on what funds the pension invests in.

Given my case, that the company is paying into a pension with me not contributing any of my own money at all, and this is not part of my negotiated salary but a company-wide policy, will it then become halal to accept this - even if it is not in a shariah compliant pension portfolio?

This has been given very recently, and I currently have no ability to control how it is invested at the moment - though I expect this to change soon, in which case I plan to immediately put it into a halal pension fund - and thereafter potentially contribute my own money into it with employer matching.

Can you advise on what I would need to do, and be careful of?


Assalaamu alaykum,

In the specific scenario and context where you’ve mentioned you have no control and no ability to action anything yet, it will be permissible for you to accept this.

As you’ve right said, as soon as you get the ability to effect something, from that moment, you will be responsible to make it shariah compliant.

Wasalaam, Jazakallahukhair