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Deduction Of Salary Expense From Mudarabah In Two Stages
Is it permissible to deduct salaries from the Mudarabah in two steps: the first deduction being along with other administrative expenses, while the second being the salary of the bank's shareholders out of the net profits?
It is permissible in the Shariah to deduct salaries from the Mudarabah in the mode described. The second deduction represents nothing more than the bank's share in the profits of the Mudarabah operation, in its capacity as working partner, and such profit is to be paid to the bank's shareholders. Care should be taken to ensure that the second deduction is according to the share of the bank as prescribed in the Mudarabah contract.

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