Social Security in Islam: True Welfare Without Taxes and Premiums
Dear readers, Scandinavian countries (such as Sweden and Norway) are often glorified as the best model of the Welfare State in the world. Free education, guaranteed healthcare, and unemployment benefits.
However, there is one dark secret rarely told: All of that “welfare” is paid by the people themselves through absolutely terrifying income taxes (reaching 50-60% of their salaries!). The state appears to be the hero feeding its people, when in fact the state is forcibly reaching into the people’s right pocket, then putting it back into their left pocket after deducting bureaucratic costs.
In developing countries, the situation is worse. People are forced to pay health insurance premiums (such as BPJS) every month. If they pay late, they are fined or their healthcare services are cut off. This is not social security, this is legalized extortion.
Islam came with a truly humane, free, and non-plundering concept of Social Security (Dhaman Ijtima’i). Through tsaqofah from the book Nizhamul Iqtishadi fil Islam by Sheikh Taqiyuddin an-Nabhani, we will dissect how the Caliphate guarantees the welfare of every individual without collecting a single penny in taxes or premiums!
1. Introduction: The Illusion of the Welfare State vs. the Manager’s Responsibility
Under Capitalism, the state is fundamentally hands-off regarding people’s welfare. When mass protests occur, Capitalism modifies itself into a Welfare State by “forcing” people to pool together (through taxes and insurance) to mutually bear costs.
In Islam, the state (Caliphate) is a Manager (Raa’in) appointed by Allah ﷻ. Guaranteeing people’s welfare is not a “kindness” of the state, but rather a Shar’i Obligation that if neglected will cause the Caliph to be punished in Hell.
The Messenger of Allah ﷺ affirmed this absolute responsibility:
فَالْإِمَامُ الَّذِي عَلَى النَّاسِ رَاعٍ، وَهُوَ مَسْؤُولٌ عَنْ رَعِيَّتِهِ
“The Imam (Caliph) who leads the people is a manager (raa’in), and he will be asked about those under his care.” (HR. Bukhari no. 7138)
Islam distinguishes people’s needs into two major categories: Individual Basic Needs (food, clothing, shelter) and Public Basic Needs (education, healthcare, security). Both have different but equally robust guarantee mechanisms.
2. Guarantee of Individual Basic Needs (Food, Clothing, Shelter)
Individual basic needs are needs that must be fulfilled by each person individually so they can survive with dignity. If even one citizen (Muslim or Non-Muslim) dies of hunger or cold because they lack clothing/shelter, then the Caliph and all Muslims commit a grave sin.
However, Islam’s way of guaranteeing individual needs is not by distributing free food packages every month to healthy and strong people. If that were done, society would become lazy.
Islam uses a Layered Safety Net Mechanism (4 Layers). If the first layer fails, the second layer catches. If the second layer breaks, the third catches. If all fail, the State steps in directly!
Let us dissect these four safety net layers.
3. First Layer: The Obligation to Work for Able Men
The first layer of social security in Islam is the Obligation to Work for every healthy, strong, and capable man.
The state will not give free money to a healthy young man who is lazy to work. Instead, the state’s task is to provide employment opportunities and facilities for them.
- The state provides free skill education.
- The state gives dead land for free (Ihya’ul Mawat) to those willing to farm.
- The state provides interest-free (riba) business capital loans from the Baitul Mal for those who want to do business.
Allah ﷻ commands humans to seek sustenance:
فَامْشُوا فِي مَنَاكِبِهَا وَكُلُوا مِنْ رِزْقِهِ ۖ وَإِلَيْهِ النُّشُورُ
“And walk among its slopes and eat of His provision. And to Him is the resurrection.” (QS. Al-Mulk [67]: 15)
4. Second Layer: The Obligation of Sustenance from Heirs/Family
What if a person is disabled, severely ill, an elderly widow, or an orphan unable to work?
The second safety net will catch them: The Obligation of Sustenance from Family/Heirs. Islam obligates capable male relatives (father, grandfather, sons, uncles, or male siblings) to bear the living costs of their weak relatives.
Allah ﷻ says:
وَعَلَى الْمَوْلُودِ لَهُ رِزْقُهُنَّ وَكِسْوَتُهُنَّ بِالْمَعْرُوفِ ۚ لَا تُكَلَّفُ نَفْسٌ إِلَّا وُسْعَهَا
”…Upon the father is the mothers’ provision and their clothing according to what is acceptable. No person is charged with more than their capacity…” (QS. Al-Baqarah [2]: 233)
The Messenger of Allah ﷺ severely threatened men who abandon their families:
كَفَى بِالْمَرْءِ إِثْمًا أَنْ يُضَيِّعَ مَنْ يَقُوتُ
“It is sufficient sin for a man that he neglects those whom he is responsible to feed.” (HR. Abu Dawud no. 1692)
If a relative refuses to provide sustenance despite being capable, the State Judge (Qadhi) will force them to pay that sustenance, even seizing their assets if necessary!
5. Third Layer: Zakat for 8 Asnaf
What if the disabled person or widow is alone and has no relatives at all, or their relatives exist but are all equally poor?
The third safety net will activate: Zakat from the Baitul Mal. The Caliphate will take funds from the Zakat Fund (Vault #3 in the Baitul Mal) and give it to them, because they fall under the asnaf of Fakir or Miskin.
Zakat in the Caliphate is not merely voluntary charity collected by private amils. Zakat is an obligation compulsorily collected by the State from the wealthy (whose wealth reaches the nishab). If a wealthy person refuses to pay zakat, the Caliph will fight them (as Caliph Abu Bakr fought those who refused zakat).
6. Fourth Layer: The Absolute Responsibility of the State (Baitul Mal)
What if a major crisis occurs, the number of poor people is very large, and the money in the Baitul Mal Zakat Fund turns out to be empty?
Here lies the greatness of Islam. The last and strongest safety net descends: the State Treasury (Public Ownership and State Ownership Funds).
Even if Zakat is empty, the State is STILL OBLIGATED to guarantee food, clothing, and shelter for its starving people. The Caliph will take money from the proceeds of oil sales, gold mines, or Fa’i and Kharaj to buy wheat and distribute it freely to the starving people.
The Messenger of Allah ﷺ proclaimed this full responsibility:
مَنْ تَرَكَ مَالًا فَلِوَرَثَتِهِ، وَمَنْ تَرَكَ كَلًّا فَإِلَيْنَا
“Whoever leaves wealth (inheritance), it is for their heirs. And whoever leaves dependents, then the responsibility is upon us (the State).” (HR. Muslim no. 1619)
If all Baitul Mal vaults are empty, only then does the Caliph collect emergency tax (Dharibah) only from the wealthy to cover the hunger, and immediately stops it once the crisis passes.
7. Guarantee of Public Basic Needs (Education, Healthcare, Security)
If food, clothing, and shelter are guaranteed through the 4-layer mechanism, then Healthcare, Education, and Security have a different mechanism.
These three are Public Basic Needs that must be provided by the Caliphate State FREE and of the HIGHEST QUALITY for all people (rich, poor, Muslim, Non-Muslim), without exception!
Why must they be free? Because this concerns public welfare that is the direct responsibility of the Raa’in (Manager).
- Healthcare: The Messenger of Allah ﷺ once received a doctor as a gift from Muqauqis (King of Egypt). He made that doctor a public doctor for all residents of Madinah for free.
- Security: The Messenger of Allah ﷺ and the Caliphs provided soldiers and police to ensure the security of the people without charging security fees.
- Education: The Messenger of Allah ﷺ freed Badr War prisoners on the condition that they teach 10 Muslim children to read and write. This is proof that education costs are borne by the state (through prisoner ransom).
The costs of building super luxurious hospitals, paying specialist doctors with fantastic salaries, and building world-class universities are taken from the Public Ownership Fund (mining, oil, forests proceeds) and State Ownership Fund (Fa’i, Kharaj) in the Baitul Mal.
8. The Prohibition of Insurance and BPJS Systems
By understanding the Caliphate’s Social Security system above, we can see how invalid and oppressive the Health Insurance system (such as BPJS) is under Capitalism.
Under the Insurance/BPJS system:
- People are forced to pay monthly premiums. If they don’t pay, they are not served or are fined. This is extortion.
- The insurance contract contains elements of Gharar (Uncertainty), Maysir (Gambling), and Riba. You pay every month, if you stay healthy, your money is lost (or managed with riba). If you get severely ill, the insurance company loses money. This is a contract absolutely forbidden in Islam.
In the Caliphate State, Insurance (Taa’min) is forbidden to operate. People do not need to buy health cards, pay premiums, or queue for hours to get class-three health services. As soon as they are ill, they simply go to the State Hospital, show their identity as citizens, and receive VIP treatment for free until fully recovered!
Table 1: Comparison of Healthcare Guarantees
| Aspect | Capitalism (BPJS/Insurance) | Islamic Economic System (Caliphate) |
|---|---|---|
| Service Cost | Paying monthly premiums | 100% Free without a penny in contributions |
| Service Quality | Differentiated by class (Class 1, 2, 3) | VIP quality for all people (rich/poor) |
| Funding Source | People’s own money rotated in riba banks | Natural Resources (Mining, Oil) from Baitul Mal |
| Legal Status | Contains Gharar, Maysir, and Riba | State Shar’i Obligation (Worship) |
9. Exemplary Story: Umar bin Khattab and the Mother Cooking Stones
The most epic story about the functioning of Islamic Social Security occurred during the time of Caliph Umar bin Khattab (RA).
One night, Umar was on patrol (blusukan) to the outskirts of Madinah. He heard children crying from a tent. He approached and saw a mother stirring a pot over a fire, while her children cried from hunger.
Umar asked, “What are you cooking, O mother?” The mother replied, “I am cooking stones and water, so that my children think there is food until they fall asleep. May Allah punish Umar bin Khattab who has abandoned us!” (The mother did not know that the person before her was Umar).
Hearing this, Umar wept bitterly. He ran to the Baitul Mal warehouse, carried a sack of wheat and ghee on his own back. Aslam (his servant) offered to carry it, but Umar rebuked him: “Will you carry my sins on the Day of Judgment?! Let me carry it myself!”
Umar himself cooked that food, blew on the fire until smoke reached his beard, and fed those children until they laughed and fell asleep full.
This is Islamic Social Security! Not merely statistical numbers on paper, but the extraordinary fear of a Head of State before the threat of Allah ﷻ if even one of his people goes hungry.
10. Conclusion: Welfare Without Extortion
The Social Security system in Islam (Dhaman Ijtima’i) is the most tangible proof that Islamic Sharia is Rahmatan lil ‘Alamin.
- It rejects laziness by obligating work for those capable.
- It strengthens family bonds by obligating sustenance from heirs.
- It destroys the Capitalist insurance system that extorts the poor.
- It makes public services free (education, healthcare, security) by utilizing the people’s natural wealth.
Islamic Social Security Formula:
Welfare = 4-Layer Safety Net (Individual) + Free Public Services (State) + Prohibition of Tax/Insurance Premiums
True welfare like this will never be realized as long as we still live under the grip of the Capitalist system. It can only be felt when Islamic sharia is applied comprehensively in the institution of the Rightly Guided Caliphate.
Prayer for the Welfare of the Ummah
“O Allah, grant us leaders like Umar bin Khattab. Leaders who cannot sleep because they think of the hungry stomachs of their people, and who distribute the earth’s wealth justly according to Your sharia. Aameen.”
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