I am an Army Officer in Bangladesh Army. As a rule we cannot do any kind of business except stock exchange. In service, some money are cut off as obligatory (provident fund) which will be given at the end of the service with good interest rate calculated. Again we are given a facility to increase the obligatory cut off money (provident fund) up to a good amount, so that officers are benefited at the time of retirement. Many officers increase the money basing on the solvency to get a good amount as the govt. declared rate of interest is high and the money is secured. Some officers do not practice this as "interest (Ribaa)" comes into play. This provision is also for the govt. officials in our country. There is a debate on this issue as it is govt. declared facility as salary and money is received at the time of retirement. If I have to take money from this head, I have to take on some specific ground like house repairing, marriage, etc., by application and that is again refunded by cutting off from salary monthly basis at some rate. Please clarify up to what extent I can take the benefit of this facility. Is it up to the obligatory cut off money with interest or without interest? Or the amount I can cut from my salary at my own up to govt. specified limit with interest or without interest? There is a provision also that some one may not take interest of the cut off money by applying to govt. Please help us by correct answer.

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger. We ask Allaah to exalt his mention as well as that of his family and all his companions.

If the situation is as mentioned, that the government invests the money deducted from army personnel in forbidden fields, then in our view it is not permissible to participate in this provident fund unless it is impossible to avoid it. So it is not permissible to participate in this fund more than what is taken from you forcefully. Also, it is not permissible to borrow money from this fund since it involves Ribaa (interest and usury). This loan involves a profit and this is Ribaa itself.

However, you have the right to take what you have given to the government throughout your military service and whatever is in excess of the amount that you originally contributed, you have to spend it in charitable fields as mentioned in Fatwa: 85315 with the intention of getting rid of this excess money but not with the intention of giving charity, but you should not leave this money for the government.

We have previously issued Fatwa: 89640 clarifying the ruling on an employee taking a pension in return for the deductions that are taken from his wages, and explained when it is permissible for him to take such pension and when it is not permissible, so please refer to the Fatwa.  

Allaah Knows best.