Educational content only. We analyze commission-only
roles using the principles of
Ju'alah (Reward for Task) and Gharar (Uncertainty).
This is not financial, legal, or religious advice. Please consult a qualified
scholar or professional for your specific situation. We do not issue fatwas.
The "Eat what you kill" mentality. 100% commission jobs (like estate agents, recruiters, or door-to-door sales) offer unlimited earning potential but zero security. Is this high-stakes model compatible with the Islamic emphasis on fair wages?
Scholarly consensus overview
Working on a "Commission Only" basis is generally Permissible under the contract of Ju'alah (Job wages based on result).
However, because there is no base salary ($0 default), the terms of the commission MUST be extremely clear. Any ambiguity (Gharar) in how the commission is calculated can render the entire contract void and sinful, as it leads to disputes.
Ijarah (Salary) vs Ju'alah (Reward)
Most jobs are Ijarah: you are paid for your time. You show up for 9 hours, you get paid, regardless of whether you sold anything.
Commission-only jobs are Ju'alah: you are paid for a result. If you work 100 hours but sell nothing, you get £0. This is fair in Islam if you agreed to it, but it requires high risk tolerance.
Tool 1: Volatility Simulator
Are you financially resilient enough for Ju'alah? Islam discourages putting yourself in a position of destruction (financial ruin).
The Problem of Uncertainty (Gharar)
Gharar refers to ambiguity or deception. In a salary job, you know exactly what you will get. In commission sales, there is inherent uncertainty about the amount, which is allowed.
But there cannot be uncertainty about the terms. "We'll pay you a good bonus if you do well" is Haram as a binding contract because "good" is subjective. "We will pay you 5% of gross revenue" is Halal because it is mathematically defined.
Tool 2: Gharar (Uncertainty) Detector
Run your contract through this detector. If the terms are vague, the contract is defective.
Tool 3: Contract Fairness Checklist
Beyond validity, is it fair? Watch out for these clauses.
Common Roles Analysis
Estate Agents
Typically 1-2% of property value. Status: Halal. The goal (selling the house) is clear, and the fee is a fixed percentage of a known number.
Recruitment/Headhunting
Typically 10-20% of first year salary. Status: Halal. Provided the candidate stays for the rebate period (clawback terms must be clear).
Multi-Level Marketing (MLM)
Commission on recruiting others (downlines). Status: Problematic/Haram. Often involves Pyramid structures and selling "the dream" rather than a product. High Gharar and often Deception.
SaaS Sales (Tech)
Base + OTE (On Target Earnings). Status: Halal. This is a hybrid Ijarah + Ju'alah. Very common and safer than commission-only.
The Red Line
Where do scholars draw the line?
- 1Selling Haram Products:
If you are on commission only, you are effectively a business partner in that specific sale. If you sell a Haram product (e.g., getting someone a Riba loan, selling alcohol wholesale), your entire earnings from that sale are Riba/Haram.
- 2Deceiving the Customer:
The pressure of "Commission Only" often tempts sellers to lie to close the deal. Income earned through deception (Ghash) lacks Barakah and must be purified, according to many scholars.
Summary & Practical Guidance
- Demand Clarity: Never start work without a written commission structure. "We'll work it out" is not an Islamic contract.
- Prefer Hybrid: If you have family responsibilities, a Base Salary + Commission role (Ijarah with Bonus) is Islamically safer as it guarantees the "Needs" (Hajah).
- Verify the Product: Ensure specifically what you are selling is Halal. Commission sales often involve financial products (mortgages, insurance) which are high-risk areas.
Methodology
Analyzing Ju'alah Contracts
We utilized the rulings on Ju'alah (Reward) from the Maliki and Hanbali schools, which are generally more flexible regarding uncertainty in work duration provided the outcome is defined.
- AAOIFI Standard No. 15: Ju'alah.
- Mufti Taqi Usmani: Rulings on employment and commission.
- IslamQA: Conditions for brokerage fees (Samsarah).