Profit Percentage Versus Salary

3-12-2003 | IslamWeb

Question:

Two persons started a business were each one of them paid an equal amount of money and is getting 50% of the profit however only one of them physically work at place and he gets in return a weekly salary is this Halal or should he get a higher percentage instead.

Answer:

All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) is His slave and Messenger.

Abdul-‘Azeez Al-Khayyat said in his book ‘Sharikaat’: “There is a consensus among scholars that it is unlawful for the manager who is an associate to take a known salary for his running of the business like 50 or 100 , …etc.

From the above the associate manager takes instead of that salary 50% (percent) of the profit, 55% or 60% of the profit. So, he is given an extra share from the profit. This is the opinion of the Hambali and Hanafi schools.

They say that as the profit is due for the money invested, it is also due for the job carried out. In other words, the person who invests his money gets a share of the profit and the person who invests his time and effort gets a share of the profit, too.

Allah knows best.

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