Investment In Government Saving Schemes And Employers Provident Funds
Thanks for your reply and suggestion. Such topic cannot be discussed in 30 seconds. It need deliberation. I would request you to obtain comprehensive response, if possible. In my humble opinion, Interest on GPF is Ribba because :- 1. Employee is demanding extra amount( he can forego the extra amount by opting for interest free GPF) 2. Exploitation may occured in a similar way as in the case of interest on other Govt scheme. If it is possible , please obtain basis of opinion for declaring interest on GPF is not Ribba( other than that it is given as end service benifit or given by employer) Regards,
The basis has been explained above that a retirement fund is not a loan transaction. Employee is not “demanding” an additional amount, he’s given an option to let go the additional amount. There’s a difference between the two. Furthermore, riba is only in loan transactions, where as a retirement fund is an employee benefit, not a loan. Exploitation is not in the equation, however, I’m not sure how an employee can exploit an employer by accepting what the employer is giving with his own free will as a benefit for working for him.