Tag Archives: Finance in Islam

Employee and Wage: From Islamic Perspective (part 3 – finished)

Employee and Wage

Author: Prof. Muhammad
(Chairman of Sekolah Tinggi Ekonomi Islam (STEI)Yogyakarta)

Minimum Standard of Wage >_ Nishob of Zakat

In practical level, although the minimum wage has been measured thoroughly by taking into measure components of food, clothes, and housing as stated in a letter issued by Minister of Employment and Transmigration No. 889 HK. 01.32.2002, it is still short to cover the basic needs of employee, particularly in developing countries. The provincial minimum wage (Upah Minimum Provinsi or UMP) of DKI Jakarta in year 2000 was IDR 972.604,00 monthly (or equal to 71 euro), increase by 8% from the 2007 UMP of IDR 900.560,00. Compare it to the employee’s wage in Europe in 2004; In belgium, 1.210 euro, France 1.280 euro, and Netherlands 1.264 euro. The minimum wage in these three countries in 2004 was 17 times higher than the minimum wage of employee in Jakarta in 2008.
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How to Manage the Household Finance in Islam – part 1

Finance in Islam

How to Manage the Household Finance in Islam – part 1

Author: Prof. Muhammad (Dean of Sekolah Tinggi Ekonomi Islam (STEI) Yogyakarta)

The wealth in Islam was a mandate, and a right of a person. The authority to use it was tightly connected to the ability (competence) and suitability (integrity) in managing the asset or in another term, the prudential principle. The Islamic principle taught us that “The best of wealth is the one that is managed by a righteous man (a trusted and professional man).”
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