Interest Money for Staff Bonuses

Q: Is it permissible to use interest to pay staff bonuses? Bonuses have been made compulsory.

A: If in any profession or employment the payment of bonuses has become a set trend, or legislation provides for it then one cannot use interest to pay the bonus. The bonus has now become a legal payment recognized by Shariah, on the same level as the usual remuneration. In such a case if the employer pays his staffs’ bonuses from interest, it means that he has derived benefit in his business from interest, which is unlawful.