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Fatwa CenterEmployment insurance in Canada
Question
In Canada the employer will deduct a certain percentage from the salary as employment insurance known as EI. If an employee is laid off from work, the government will pay him an amount equal to 65% of his wages. The EI contributions he made by law the government uses in various investment products, both Halal and Haram. The EI benefits one gets is from these sources. Is it okay to use these EI benefits? When we asked a Mufti he said don't make things complicated, you have contributed by law and you are entitled for the benefit. Its not your concern where government is investing. I had a car accident and my insurance paid me the claim. Is it okay to get this claim and use it because I was paying insurance by law. Can you put some light on these situations?
Answer
Praise be to Allah, the Lord of the Worlds; and blessings and peace be upon our Prophet Muhammad and upon all his Family and Companions.
As for employment insurance, if it is between the employee and the government, it is lawful above all if the employee is needy, as the Shari'a establishes an allocation from the Bayt al-Mal (public treasury) for the needy people who should actually be supplied with sustenance from it. But the best and more pious for the employee is to take from this insurance only an amount equal to the one he has paid and not to accept taking more than that.
Allah knows best.
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