Q: I have a question for Mufti Saheb regarding a business contract for an employee.
I am an optometrist and have my own optometry practice. It is the main source of my income to run my home. I am hiring another optometrist to run the business so that I can increase my studies.
The going rate for an optometrist is around R25 000 a month in KZN.
I have offered this person a salary of R15 000 with the incentive of earning 50% of the profits from the business every month.
In the expenses of the business I have stipulated R25 000 as a salary for myself to run my expenses. I will still assist in the decision making and management of the practice. As the sole owner of the business. Is it permissible for me to take this R25 000 salary as part of the business expenses not to be included in the profit.
The expenses are all shared with the optometrist I wish to hire so that there is full transparency.