Q&A (Fatwa)
#488: Ruling on Fixed Reward for Business and Labor
QUESTION
” Assalamu alaykum ya Admin, may Allah benefits you, Pls. What is Islamic rule on a fix profit on a joint business?”
ANSWER
Wa alaykum Salām Warahmatullāh Wabarakātuh.
Alhamdulillāh.
Āmīn to your du’ā and may Allāh benefit you too.
The question you asked depends on what you mean by ‘profit’ and ‘joint business,’ but generally the Ulamā differentiated between the reward of business which is profit, and the reward of labour, which is wage.
As for profit, it can never be fixed for it depends on the outcomes of the business.
As for his wage, it must be fixed as it is an agreement between the employer and the employed.
Profit must be variable while Wage is fixed.
Bārakallāhu fīkum.
Jazākumullāhu Khayran.
📚 IslamNode
