Withdrawing from a mandatory provident fund

Submitted by user2 on Tue, 2020-09-15 07:17

Q: I am working in a company where we have a provident fund facility. I wanted to take some amount from my PF Account. In case of temporary withdrawal, the company will charge a certain % as loss of interest. Can I borrow this amount from my PF account? The purpose of borrowing is making investing in some areas.

Secondly, the company always gives interest on our PF balance on annual basis so would it be jaiz for us since this activity of fund and participating in fund is mandatory. The decision of investing PF fund is also with trustees of fund and not with us.

A: If it is a compulsory and mandatory contribution and they allow you to withdraw from the fund then it is permissible.

If it is compulsory and mandatory then you can receive the payout on an annual basis.

And Allah Ta'ala (الله تعالى) knows best.

Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)

Category:

Business and Dealings›Interest and Gambling›Provident funds

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