Mufti Online — Madrasah Ta'leemuddeen

Withdrawing from a mandatory provident fund

· 27 Muharram 1442 AH1 min readEnglish

Question

I am working in a company where we have a provident fund facility. I wanted to take some amount from my PF Account. In case of temporary withdrawal, the company will charge a certain % as loss of interest. Can I borrow this amount from my PF account? The purpose of borrowing is making investing in some areas.

Secondly, the company always gives interest on our PF balance on annual basis so would it be jaiz for us since this activity of fund and participating in fund is mandatory. The decision of investing PF fund is also with trustees of fund and not with us.

Answer

If it is a compulsory and mandatory contribution and they allow you to withdraw from the fund then it is permissible.

If it is compulsory and mandatory then you can receive the payout on an annual basis.

And Allah Ta'ala (الله تعالى) knows best.

Answered by
Mufti Ebrahim Salejee (Isipingo Beach)
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Source: Mufti Online — Madrasah Ta'leemuddeen — https://muftionline.co.za/node/31703
Fatawa SA: https://fatawa.co.za/fatwa/muftionline-31703

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