The Concept Of Wages / Salaries according to Islam

It is motivated by the inadequacy of Islamic guidelines regarding the system of compensation or post-employment benefits in ensuring employee / worker wages. And it is common that the boss (employer / employer) wants to give a minimum salary   for employees who have worked. This can occur among other things because many Muslims do not really understand Islam in Kaffah, especially specifically regarding the matter of compensation.

According to the Islamic definition, wages must be in such a way that they do and are sufficient to meet the needs of life for themselves and their families and not burden them. Islam is not just a religion, but a way of life. A Muslim who is obedient to his religion, he should be more committed in his work. Companies must determine compensation packages for employees in such a way as to enable them to meet their basic needs and with a standard of living comparable to employers

In Islamic principles, it has been enacted that in employment contracts, compensation points or salary payments must be stated and written in the employment contract, payments must be defined in advance by the employer to avoid confusion and arguments between the two parties. This will concentrate and ensure that the employee’s work is in accordance with the agreement. Furthermore, the salary scale formulation must be done carefully according to the employee’s past experience and qualifications. More importantly, the wages to be given by employers to employees must be commensurate with the work and performance performed by employees. Islam encourages employers to value their employees according to their qualifications, experience, knowledge, abilities and the amount of work they do (Surah al-Yasin: 54, Surah An-Najm: 39)

Islam emphasizes the concept of compensation that employers must refrain from prejudice, bias, and favoritism in determining a very fair and reasonable amount. Salaries must be sufficient to cover staffing needs (based on applicable living standards). The amount of compensation must be sufficient for them to buy food, clothing, shelter and transportation. There is no discrimination against valuable workers no matter the sex of the worker (Surah an-Nahl: 97; Surah al-Kahfi: 30, Surah al-A’raf: 85)

That the employer must provide a salary immediately after the work is completed by the employee (this is also in line with the Hadith of the Prophet SAW who said “Pay the laborer his salary before his sweat dries”

The main purpose of the “employee” is to seek the pleasure of Allah ordered by Allah in Surah al-Dzariyyat verse 56 which regulates that “I created jinn and men but that they worship me”. With this direction in mind, employees have the responsibility to work with sincerity, in carrying out their duties and fully realize that they will be responsible for all their actions. God has promised rewards for goodness and punishment for wrongdoing that is carried out in this world or the hereafter

Ultimately, good compensation can be ensured only when employers and employees will comply with Islamic Compensation guidelines. Employees must consider that his work is part of worship and he must be responsible for his work in the afterlife. The employer must think that he must be responsible in the afterlife if he does not maintain Islamic guidelines when designing and ensuring compensation. Employers must also think that employees are valuable organizational resources and good remuneration can help in achieving the goals set by the organization.


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