The two fundamental principles of justice and Benevolence are the basic determinants of land rent justice demands that rent should be levied upon the tenant cultivators according to their ability to pay so that they might feel happy and satisfied, and in consequence work hard to increase the productivity of land. And benevolence demands that rent should only be collected from them when they have produced over and above their needs; and when the produce is not in excess of their needs, no rent should be collected form them.
The third principal which governs determination of rent is referred to in the following verse of the I loly Quran.
“Wrong not, and you shall not be wronged,”
This principal implies that rent should be fixed in such a way that it bites neither the tenant nor the land owner. It should neither e too high as to be burden some on the tenant, nor should it be too low as to damage the interests of the landowner. It must be fixed with justice and goodness to both so that the interest of the partners involved in the contract are well safe guarded and protected.
In order to protect the interests of both the landowner and the tenant, the Muslim state considers three factors, that is.
- Productivity of Land
- Cultivator and his welfare, and
- Cost of cultivation, before determining the rent of land.
Principles of Land Rent in Islam.
Nature of Land:
fhe nature of land plays an important part in determining the rent of land in an Islamic state. The amount of rent is determined according to the nature of land. A fertile land is subject to a higher rent, while a less fertile is likely to pa> a lower rent and a barran land may not pay any rent at all.
Nature of Crops:
A land capable of producing rich commercial crops will be subject to a higher rent in comparison with land which produces less expensive crops.
Nature of irrigation:
The amount of rent will also vary with the changes in the type of irrigation used to raise crops from any land. The greater the capital employed by the cultivator to irrigate his land, the lesser will be the amo mt of his rent and vice versa.
Allowance for the cultivator’s Labour:
Before determining rent of land, an allowance has to be given to the cultivator for his labour. While calculating his expenses of cultivation, due regard is paid to personal labour in the process of cultivation.
Thus all the above mentioned factors. I.e. nature of land, naittev of crops, nature of irrigation and expenses of cultivation including the labour of the cultivator, must be taken into consideration in determining rent of land.
- How the wages should be determined in an Islamic state. Explain the methods to standardise wages in Islam?
Ans: Islam offers a very simple solution of the problem of wages and safeguards the interest both of the working class and the employers. The labourer gets a reasonable wage without infringing the legitimate rights of the employer. The employer is not allowed to tyrannise the working class by depriving them of their rightful share, while the latter are not given over the entire National Dividend so as to deprive the former of his rightful claim.
The wages are determined in a most equitable fashion without undue favour to or undue oppression on any side. Each party gets its legitimate share of their joint product without being unjust to the other.
This principle is mentioned in Quran as
“And-that he may pay them for their deeds and they will not be wronged.”
This verse makes it quite clear that wages of every man should be determined by his work and contribution to joint product, and he should be paid neither less nor more than what he has laboured for.
Level of wages:
In view of the principle of justice w^ges in a Muslim society will be determined through negotiation between the labourer the employers and the state. The interest of both the wages earner and the employers will be taken into account quite impartially in arriving at any decision with regard to wage. It would be the duty of the Islamic State to see that wages are fixed at a level that they are neither so law as to deprive labourer of their elementary necessaries of life, nor so high as to deprive the employer of his just- shart of the joint product. In order to establishes an equitable wages level in the country, it would be necessary to fix the minimum wage rate, and this minimum rate must be reviewed occasionally to make
adjustments according to changes in the price level and the cost of living. The maximum rate will of course be determined by the contribution of the labour and will vary accordingly .
Actual level of Wages:
Thus Islam has provided safe guards to protect the rights of both the employer and the employee. I he lower level below which wages must not fall protects the right of the labourer. While the upper limit above which wage must nor rise safeguards the interest of the employer. Actual wages will move in between these limits according to the laws of supply of and demand for labour, which of course, will be influenced by the customary standard of living of working class, the effective strength of their organizations , and the attitude of the employers reflecting their belief in God and the day of judgement.
As a result of the interaction of all these—factors , wages will be fixed same where between the minimum and the maximum level determined by the customery standard of living and contribution of the labourers respectively.
Stability of Wages:
In order to maintain wages at a reasonable standard, Islam has given complete freedom of mobility to labour, they are free to move and seek their livelihood in any part of the country. There are absolutely no restrictions on their movement from one* area to another area of the state in order to seek higher wages.
The second method to standardize wages complete freedom of occupation. Every man is at liberty to select any occupation of his own choice and there are no restriction which may in any way create difficulties in the selection of occupation or in the choice of geographical area of work for the labourers.
As a result labour force is distrubited in all occupation and in all parts of the country in proportion to its demand and there can be really any excess or shortage of labour anywhere. This freedom of mobilit) of labour between different areas and occupations greatly helps to maintain stability in the wages throughout the country.