Rules Concerning Ribā: Ruling on Receiving State Pension with Government Contributions

Practical Laws of Islam as per the teachings of Imam Khamenei

Rules Concerning Ribā: Ruling on Receiving State Pension with Government Contributions

English:

Question #1616:

Is there any problem in receiving an old-age pension from the state, after years of contributions deducted from the wages of the employee during his long years of service? It is to be noted, however, that what the person receives as pension is not only the contributions he made during his service, rather an amount increased by way of government contribution.

Answer #1616:

There is no problem in receiving the pension. The extra amount paid by the government to the pensioner over and above what he has contributed is neither interest nor ribā.

-Imam Khamenei, Practical Laws of Islam, Importance and Conditions of Rules Concerning Ribā