The rich traditions and teachings of Islam regarding the economic system can be a means to solve a lot of economic crises that are facing the contemporary world. For example, Islam offers a comprehensive framework for economic transactions and a wage system based on the Qur’an and Sunnah to establish fairness and avoid discord in society.

The importance of fair compensation lies at the heart of the Islamic wage system. The Qur’an emphasises equitable treatment of workers and exhorts employers to provide their labours with wages based on justice. In the Qur’an, Allah says, “Give full measure and full weight in justice, and do not deprive the people of their due.” (Surah An-Nisa, 4:36) This ayat underscores the importance of fairness and honesty in economic transactions, including the payment of wages.

Furthermore, Prophet Muhammad (PBUH) also gave strict instructions to ensure fair payments of wages. He emphasised that the workers should be paid their due compensation on time. According to a hadith narrated by Abu Huraira, the Prophet (PBUH) said, “Give the labourer his wages before his sweat dries.” (Sunan Ibn Majah). This instruction highlights the urgency of paying workers promptly and not delaying their payments, ensuring their financial stability and dignity.

Justice and equity in compensation are other principles of the Islamic wage system. It emphasises the principle of equity in compensation, wherein individuals are remunerated based on the value and effort of their work rather than arbitrary factors such as social status or ethnicity. The Qur’an states, “And for all, We have made heirs to what is left by parents and relatives. And to those whom your oaths have bound [to you] - give them their share. Indeed, Allah is ever, over all things, a Witness.” (Surah An-Nisa 4:33). This ayat highlights the equitable distribution of wealth and resources, including wages, among heirs.

Similarly, in the famous Farewell Sermon, Prophet Muhammad (PBUH) declared, “Your lives and properties are sacred. You have rights upon each other that have been entrusted to you by God.” (Bukhari and Muslim). This statement also stresses the sanctity of human life and property, including the right to fair compensation for labours.

Prohibition of exploitation is also a significant concern of the principles of the wage system in Islam. Islam unequivocally prohibits the exploitation of workers and condemns practices that undermine their rights. The Qur’an warns against injustice and oppression in economic dealings, stating, “Woe to those who give less [than due], who, when they take a measure from people, take in full but if they give by measure or by weight to them, they cause loss” (Surah Al-Mutaffifin, 83:1-3). These verses admonish those who cause loss to others through their deceptive transactions and emphasise the importance of honesty and integrity in commerce.

Moreover, various hadiths of Prophet Muhammad (PBUH) also exemplify his contempt towards exploitation and unfair treatment of workers. The Prophet (PBUH) admonished employers who withheld or delayed wages, stating, “Whoever hires someone, he must pay him his wages” (Sunan Ibn Majah). He (PBUH) also states, “Three persons will face Allah’s wrath on the Day of Judgment. They are the ones who dies without fulfilling his promise to Allah, one who sells a free person into slavery and devours the profits and one who engages a labourer and denies him wages after his service.” (Sahih al-Bukhari). This hadith signifies the contractual obligation of employers to compensate workers fairly and promptly, without resorting to exploitation or injustice.

After that, it was narrated in another hadith that the Prophet (PBUH) said, “Those working under you are your brothers. They have been made by Allah subservient to you and should not be burdened with tasks beyond their powers and if such a burden has been put on their shoulders, then you should help them.” (Sahih Muslim). In another hadith, it is also said, “If you give light work to your servant, Allah shall reward you on the Day of Judgment”. (Sahih Ibn Hiban).

In short, it can be said that the wage system of Islam is mainly based on the principles of fairness and justice and Islam promotes equitable treatment of workers, timely payment of wages, and prohibition of exploitation. By adhering to these principles, individuals and societies can foster economic prosperity while upholding the dignity and rights of workers. In a world marked by economic inequalities and injustices, the teachings of Islam offer timeless wisdom and guidance for creating a more just and equitable society. So, may Allah guide all of us to the right path!
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The writer is a scholar of Islamic views on contemporary issues