Working for a bank or an insurance company

Assalaamu’alaykum,

I want to know if bank and insurance company jobs as an accountant are halal occupations. 

بسم الله الرحمن الرحيم

الجواب حامدا ومصليا ومسلما

It is not permissible to give aid to the execution of unlawful transactions, such as an interest bearing loan or buying and selling insurance. It is, however, permissible to record unlawful transactions which have already been carried out. Therefore, working as an accountant is, in itself, permissible.

However, since majority of the wealth acquired by an insurance company is the sum of premiums paid by clients, which is unlawful according to shari’a, the income being paid to employees is also unlawful. Therefore, working as an accountant for an insurance company is not permissible.

On the other hand, the income paid to bank employees primarily comes from the money collected by account holders, which is halal. Therefore, it is permissible to serve as an accountant in a bank. Nevertheless, abstaining from such jobs is always better, so that one stays disconnected from unlawful transactions to the fullest extent.

والله اعلم

Allah subhanahu wa ta’ala knows best.

Samir Wahid

Approved by Mufti Husain Ahmad Madani