Legal and Illegal Earning in Islam: A Literature Review (2024)

FAQs

What is the legal means of earning in Islam? ›

Legal earning means: The income earned according to the instructions and the ways approved by Allah and His Prophet (PBUH). (Science, 2017) Allah says: “O you who believe! Eat the good things we have provided for you and be grateful to Allah if it is Him ye worship” (Albaqara,2: 173).

A fatwa is a religious ruling or opinion issued by an Islamic scholar or mufti. It is usually in response to a question posed by a Muslim concerning Islamic law or doctrine and is not legally binding. The word "fatwa" comes from the Arabic root f-t-y, which means "to decide" or "to give an opinion."

Moreover, the Prophet Muhammad (peace be upon him) emphasized the importance of earning a livelihood in a halal manner. He said in a hadith, "The purest food is that which you eat from your own earning." Conversely, earning haram money can lead to negative consequences.

If someone is earning money through means not allowed in Islam, they are said to be earning a haram living, the opposite of having halal earnings through a permissible job, which can actually be considered worship if one is working for the right reasons (but that goes beyond the scope of this post).

Halal income is a spirit of the body; it induces the body to do charitable work. Haram income never lets him do righteous work; it provokes the consumer to commit sin and do distractive work. Halal does not only refer to how our food is prepared and how our animal is slaughtered but also to how we earn our money.

The first and foremost benefit is of halal earning is that Allah (عَزَّوَجَلَّ) is pleased with the act. We are to stand in front of our Lord and we are answerable to Him. The correct means of earning becomes a basis of His pleasure.

There are two primary sources of Islamic law: Quran and Sunnah. Quran and Sunnah make up Shariah (pathway), the source of all principles of Islamic law. 2. Khan, A.A. et.

Religious Systems

For example, in Saudi Arabia, the legal system is based on sharia law, derived from the Koran, the Islamic religious text, as well as from the Sunnah and the Hadith. The legislature enacts statutes, but all are tested against Islamic tenets.

In shariah, there is not any written upper limit of profit that can be illegal.

God will provide as He is the All-Provider.

“..and be good to parents, and do not kill your children because of poverty – We will give provision to you, and to them,” [Quran 6:151]. God is the provider of all. A true believer does not fear poverty because they trust that God will provide for them.

What Quran says about wages? ›

According to Islamic teachings, employers must pay their employees a fair wage for their work and should not exploit them. This is based on the Quranic verse: “And give full measure when you measure, and weigh with a balance that is straight” (Quran, 17:35).

There's no money or wealth like halal money and wealth

There is indeed no barakah in haram earnings. In addition, extra income should always be put to productive use, as hoarding is frowned upon in Islam. Don't be a miser or get too attached to money and worldly possessions.

The permissibility of forex trading in Islam hinges on adherence to Islamic finance principles. In Islam, forex trading is considered haram when it involves interest payments, high uncertainty, or speculative practices resembling gambling.

to get money, shares, or assets, either as payment for work that you do or from an investment that you have made.

Earning money through lawful means is not only important for personal spiritual growth but also for the well-being of society as a whole. There are many different ways to earn halal money, such as entrepreneurship, professional careers, agriculture and farming, and real estate.

In particular, Islamic law prohibits the collection and payment of interest. Generally, it also prohibits trading in financial risk (seen as a form of gambling). It also prohibits investing in businesses considered haram (prohibited, forbidden), such as those selling alcohol or pork.