Is it Halal to accept sales commission?
What is the Islamic view of acquiring the sales commission by an employee for each business?
Which is done between one company and a customer, the employee may be acting as the mediator through a phone call or even without that some people even ask for big commission just for a phone call.
that if taking sales commission permitted or if a employer gives to the employee a particular thing thing to sell and if he says that if you sell you get a commission, is it permitted?
There are two types of sales commission.
That if you take a sales commission and the sales commission is given from the profit margin of the employer it’s permitted, or there is the MRP of that good and suppose the MRP of that good is $100 and the employer tells you $100 is a good you sell from that $100 I’ll give you $5 or I’ll give you $10 5% or 10% whatever it is it’s permitted.
But if the cost is $100 and he says that you get me a client and I’ll sell it for $110 then it’s not permitted, because they’re adding on that commission to the purchaser.
So if the commission is added to the purchaser it becomes prohibited.
But if it’s not added to the purchaser then it’s permitted.
Here there’s a thin line, what you have to understand that what is the MRP is the maximum retail price of that cost, and there are many times when the owners of the shop tell architects, okay get a customer to my shop I’ll give you 10% Commission.
Now if that architect or if that agent gets a customer to the shop and if the commission is given in such a way that no extra cost is there on the sale price of the goods then the commission is permitted, like you get customer what purchase I’ll give you 5% no problem, as long as the retail price of the goods he has sold to the customer is the same, and from his profit he’s giving you 5% 10% is permited, oh you get a client who is Rich I will increase the cost from 100 to 150 I’ll give you 25, that’s Haram.
The cost is 100, why are you increasing to 150 and then giving 25 or I’m increasing from 100 to 110 and giving you 10 that’s not permitted.
So as long as the cost is not added extra to the customer then the commission is permitted, but if the cost is added the commission cost is added to the customer then it’s not permitted.
So this type of commission is permitted but adding is different, regarding business if you are an owner if you’re buying a good for 100 then selling for 110, 120, because you’re a businessman, you’re buying it.
Now you become the owner, then you’re taking a profit you can 10% profit 20% I’m buying from wholesale, I’m selling a that’s permitted, that’s not commission, that is business you’re getting a profit, but commission means you don’t own the product and you are selling it, So the owner tells okay this is the price I’m not going to increase the price you sell I’ll give you commission permit, or if you an agent that gets someone to the shop and the owner tells you okay I’ll give you 5% of what he buys or 10% what he buy as long as he doesn’t increase the the cost of the goods or doesn’t put it onto the billing of the customer, this type of commission is permitted, if he puts it onto the bill of the customer charges customer extra then it’s not permitted.
