Can a partner take a salary from a business partnership? 

Q. Is a working partner in a business entitled to a salary in addition to the profits/dividends he receives as a shareholder? The salary being in lieu of the work he does.

A. A partner in a business is only entitled to a stipulated percentage of profit irrespective of his being an active (working) or silent partner. An agreement can be made for the active partner to take a greater percentage of the profit but he may not take a fixed salary. (Al Lubaab Fi Sharhil Kitaab 2/127)

If however, a partner enters into a separate contract of employment/management etc. in the business apart from the partnership contract, then such a partner may take a salary based on the employment contract which will be governed by the terms of the employment contract. (Ahsanul Fataawa 7/328-Fataawa Darul Uloom Zakariyya 5/735/736/737)

Allah Ta’ala Knows Best

Mufti Ismaeel Bassa