Ijarah: Justice in Labor Relations and Wages in Islam
Dear readers, every year we witness the same scene: millions of workers take to the streets demanding increases in the Regional Minimum Wage (UMR), while entrepreneurs cry that wage increases will bankrupt their companies. The relationship between employer and employee in Capitalism is like that between predator and prey—oppressive and full of suspicion.
Capitalism views workers merely as a “factor of production” (a commodity), similar to machines or raw materials. Their wages are pressed as low as possible to pump up profits for capital owners. On the other hand, Socialism-Communism equalizes all wages regardless of skill, which ultimately kills motivation and creativity.
Islam came with a humanitarian revolution in the world of work. Through tsaqofah drawn from the book Nizhamul Iqtishadi fil Islam by Sheikh Taqiyuddin an-Nabhani, we will dissect the concept of Ijarah (Service Lease/Labor). In Islam, workers are not slaves, but rather partners bound by a sacred shar’i contract.
Let us explore how Islam honors the sweat of workers and creates eternal harmony between employers and employees.
1. Definition of Ijarah: A Contract for Benefits
In fiqh muamalah, employing someone is called an Ijarah contract.
Sheikh Taqiyuddin an-Nabhani defines Ijarah as:
عَقْدٌ عَلَى الْمَنْفَعَةِ بِعِوَضٍ “A contract for a benefit (service) with compensation (wage).”
In the context of employment:
- Musta’jir = Employer (master/company).
- Ajir = Worker (laborer, employee, professional).
- Ujrah = Wage (salary/compensation).
- Manfa’ah = Service or labor provided by the worker.
So, when a company employs an engineer, the company is actually renting the benefit (expertise) of that engineer, not buying their physical body or life time. Since this is a lease contract for benefits, there must be absolute clarity to prevent injustice.
Allah ﷻ legitimizes the Ijarah contract:
فَإِنْ أَرْضَعْنَ لَكُمْ فَآتُوهُنَّ أُجُورَهُنَّ
“Then if they breastfeed for you, give them their wages.” (QS. At-Talaq [65]: 6)
2. Conditions for a Valid Ijarah Contract
For a work contract to be valued as worship and valid under sharia, three things must be clear (ma’lum) at the beginning of the agreement (employment contract):
- Type of Work (Naw’ul ‘Amal): The duties must be clearly defined. There must be no ambiguous clauses such as “perform other tasks assigned by the supervisor.” If hired as a driver, they cannot be forced to wash the employer’s clothes.
- Duration of Work (Muddah): Working hours must be clear. For example, from 08:00 to 16:00. Forcing overtime without agreement and without additional pay is haram.
- Wage (Ujrah): The amount must be agreed upon before work begins. An employer must not say, “Just work first, we’ll figure out the pay later.”
The Messenger of Allah ﷺ said very firmly:
مَنِ اسْتَأْجَرَ أَجِيرًا فَلْيُسَمِّ لَهُ أَجْرَهُ
“Whoever employs a worker must specify their wage.” (HR. Abdurrazzaq in Al-Mushannaf)
3. Types of Workers (Ajir)
In Islam, workers are divided into two categories based on the nature of their engagement:
1. Ajir Khas (Specific Worker)
A worker who leases their labor to one specific party for a specific period of time. During that time, they may not work for others.
- Examples: Factory employees, office workers, domestic helpers, private drivers.
- Characteristics: Their wages are calculated based on time (daily, monthly), not merely output. If they show up at work but the machine is broken so they cannot work, they still receive full wages.
2. Ajir Musytarak (General Worker / Freelancer)
A worker who leases their labor to complete specific tasks, without being bound to specific hours, and may work for multiple clients simultaneously.
- Examples: Tailors, freelance architects, AC repair technicians, practicing doctors.
- Characteristics: Their wages are calculated based on completion of work. If the work is unfinished or damaged due to their negligence, they are not entitled to full wages.
4. Sharp Critique of the Minimum Wage System (UMR)
This is the sharpest point of divergence between Islam and Capitalism. How should salary standards be determined?
Under Capitalism, the state sets a Regional Minimum Wage (UMR) or Decent Living Standard (KHL). The government calculates the price of rice, rent, soap, and transportation, then sets that figure as the minimum wage.
Islam views this minimum wage system as a great injustice. Why?
- Degrading Human Dignity: The minimum wage calculates human pay exactly like calculating the operating cost of a machine (fuel + oil + spare parts). Workers are paid just enough so they “don’t die” and can come to work again tomorrow.
- Exploitation of Ability: If a worker is highly skilled and works fast, they are still paid only the minimum wage. The added value of their expertise is seized by the employer.
- Provoking Conflict: Because the minimum wage is based on the price of basic necessities (which always rise due to paper money inflation), workers will inevitably demonstrate every year demanding increases, and employers will always resist.
Visual Analogy: Machine vs. Human
Capitalist Minimum Wage System: You have a lawn mower. You only give it 1 liter of fuel per day because that’s the limit to keep the machine running. You don’t care whether it cuts 10 meters or 100 meters—the fuel stays at 1 liter. That is how Capitalism treats workers.
Islamic Ijarah System: You hire a lawn-cutting expert. You look at the quality of their cutting, their speed, and their neatness. You pay them based on the value of their service, not based on how many plates of rice they eat that day.
5. The Concept of “Ajrul Mitsil” (Equivalent Wage) in Islam
If Islam rejects the minimum wage, then how are wages determined?
Islam establishes that wages are determined based on Ajrul Mitsil (Equivalent Wage commensurate with the value of the benefit), mutually agreed upon between employer and worker.
Ajrul Mitsil is determined by the labor market (market value of the service), NOT by the price of basic necessities (living cost).
- If the service of an IT engineer is valued at 20 Dinars in the market, then that is the Ajrul Mitsil, regardless of whether they are single or have 5 children.
- If a dispute arises between employer and worker regarding the wage amount, then the state (through Khubara’ or labor experts) will assess the Ajrul Mitsil for that type of work and enforce that figure.
How Do Workers Meet Their Living Needs?
Here lies the beauty of the Islamic Economic System. In the Caliphate, Basic Needs (food, clothing, shelter) are guaranteed to be fulfilled by the system as a whole (not burdened on employers), and Public Facilities (healthcare, education, security) are provided free by the State from the Baitul Mal treasury.
Because education and healthcare are already free, the wages received by workers (whatever their amount) are used in full to improve their standard of living (buying better food, vacationing, or giving charity). Workers no longer need to worry about hospital installment costs or school enrollment fees for their children!
6. Workers’ Rights That Must Be Fulfilled
Islam establishes very strict rights for workers that are forbidden for employers to violate:
1. Wages Paid on Time Delaying wages due to company cash flow problems is not permitted. The Messenger of Allah ﷺ said:
أَعْطُوا الأَجِيرَ أَجْرَهُ قَبْلَ أَنْ يَجِفَّ عَرَقُهُ
“Give the worker their wage before their sweat dries.” (HR. Ibn Majah no. 2443)
2. Not Burdened Beyond Capacity Workers have the right to rest, the right to worship (prayer), and time for their families. If an employer forces overtime without agreement, that is injustice.
3. Workplace Safety Guarantee Employers must provide a safe working environment. If a worker is injured due to negligence of company safety standards, the employer must pay compensation (Diyat or Arsy).
4. Free from Income Tax (PPh) In the Caliphate State, it is haram to deduct workers’ salaries for Income Tax. Wages are the absolute right of the worker.
7. Severe Warning for Oppressive Employers
Islam does not take lightly the protection of the working class. If an employer exploits a worker’s labor yet cuts their wages or delays payment, Allah ﷻ Himself will be their adversary on the Day of Judgment.
In a Hadith Qudsi, the Messenger of Allah ﷺ reported that Allah ﷻ said:
ثَلَاثَةٌ أَنَا خَصْمُهُمْ يَوْمَ الْقِيَامَةِ: … وَرَجُلٌ اسْتَأْجَرَ أَجِيرًا فَاسْتَوْفَى مِنْهُ وَلَمْ يُعْطِ أَجْرَهُ
“There are three whose adversary I will be on the Day of Resurrection: … (one of them) is a man who employed a worker, the worker completed the work, but he did not give him his wage.” (HR. Bukhari no. 2270)
Imagine, an oppressive employer doesn’t just deal with labor unions, but deals directly with the Creator of the Universe!
8. The Role of the Caliphate in Labor Disputes
Under the Capitalist system, if workers are oppressed, they must hire expensive lawyers and go through labor court processes that take years.
In the Caliphate, labor dispute resolution is handled very quickly, freely, and fairly by the state’s judicial institutions.
- Qadhi Khushumat (Dispute Judge): If a contract dispute arises (e.g., unpaid wages), the worker can report directly to the Qadhi Khushumat. The judge will summon the employer that very day and decide the case based on contract evidence.
- Qadhi Hisbah (Market Order Police): If there is mass exploitation (e.g., a factory does not provide adequate ventilation, or sets inhumane working hours), the Qadhi Hisbah has the authority to conduct inspections and immediately impose sanctions on the factory owner on the spot without waiting for reports from workers.
Table 1: Comparison of Labor Systems
| Aspect | Capitalism | Islamic Economic System |
|---|---|---|
| Wage Standard | Minimum Wage (Based on cost of living) | Ajrul Mitsil (Based on value of service/benefit in the market) |
| Basic Needs | Burdened on worker’s wages (school, hospital paid by self) | Guaranteed free by the Caliphate State |
| Labor Relations | Class conflict (Exploiter vs. Exploited) | Partnership bound by Shar’i contract (Ijarah) |
| Salary Tax | Deducted by Income Tax every month | Zero Percent (Forbidden to be taxed) |
9. Character of the Muslim Worker: Qawiyyun Amin
On the other hand, Islam also demands the highest level of professionalism from the worker. Workers must not be lazy, waste time, or damage the employer’s equipment.
The Qur’an sets two main requirements for an ideal worker, as stated by the daughter of Prophet Shu’aib (AS) when recommending Prophet Musa (AS) for employment:
إِنَّ خَيْرَ مَنِ اسْتَأْجَرْتَ الْقَوِيُّ الْأَمِينُ
“Indeed, the best one you can hire is the strong and trustworthy.” (QS. Al-Qashash [28]: 26)
- Qawiyyun (Strong): Possesses expertise, competence, professionalism, and adequate physical capacity to complete tasks.
- Amin (Trustworthy): Has integrity, is honest, does not leak company secrets, and does not steal company assets (neither time nor material corruption).
If a worker has fulfilled the qualities of Qawiyyun Amin, then the employer is forbidden from withholding their rights even for a second.
10. Conclusion: Harmony Between Worker and Employer
The Ijarah system in Islam proves that economic justice need not be achieved through bloody Communist-style revolution, nor by allowing Capitalist-style oppression.
- It abolishes the minimum wage system that degrades humans, replacing it with Ajrul Mitsil that honors expertise.
- It frees workers from fear of school and hospital costs, because the Caliphate guarantees them separately.
- It binds employers with the threat of Hellfire if they oppress the rights of workers’ labor.
Formula:
Islamic Ijarah = Clear Contract + Wage Based on Benefit (Ajrul Mitsil) + Timely Fulfillment of Rights + Guarantee of Basic Needs by the State
Only under the shade of the Islamic Caliphate will May Day (Labor Day), filled with tears and tear gas, never occur again. What will exist instead is mutual contentment between God-fearing employers and trustworthy workers.
Prayer for Blessed Sustenance
“O Allah, make our sweat an act of worship that You are pleased with. Suffice us with Your lawful sustenance, and keep us far from oppressing the rights of others. Aameen.”
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