QUESTION: It is lawful for a Muslim to collect pension and entitlement after his or her resignation or retirement from work? What is the Islamic rulings on this? (Abdul majid M Badru, ebute meta west)
All praise is to Allaah and may His Peace and Blessings be upon our noble Prophet Muhammad (peace and blessings of Allaah be upon him). It is lawful to collect your pension or entitlement after retirement because you have given the full service required of you to the establishment. This is correct as long as it is in line with company policy and agreements known to both you and your company.
Resignation on the other hand is different and can’t be likened to retirement. In this case, you have decided to leave the company probably without completing the term that will make you benefit from the pension or retirement benefit. In that case, you would probably not be paid the salary of the month you leave unless it is at the end of that month. No company will pay you pension for such resignation but your personal contribution to the retirement benefit will be refunded to you. And Allaah knows best.
This article was culled from the publications of Deen Communication Limited