In a scheme like GP Fund (or CBF), an employee contributes a certain percentage of his salary (e.g. 8%). An equal amount is contributed by the employer in the account of the employee. This is a kind of forced saving by the employee. Is it lawful to take benefit from this facility. What about the interest on this accumulated money?

In schemes like the GP fund, the employee has no option but to accept the forced deduction made by the government. It is a well-known fact that the part contributed by the government is raised through interest transactions. However, it should not be the concern of the employee as to how the employer raises this amount to meet his part of the `forced’ contract.

The interest accrued on the amount is unlawful. A person should not benefit from it. He can spend it on the poor and needy without being hopeful of a reward from the Almighty, since this money actually is not his prerogative and in fact belongs to the society. By spending the money on the poor and needy the money is utilized for the society.