Receiving Unemployment Benefit When in Work
Some countries give unemployed citizens statutory benefits. It is forbidden to exploit this if they are working and earning wages unless the earnings are within the low-pay limits allowed by the government.
Receiving Unemployment Benefit When in Work
Similar Questions
Claiming to be unemployed to get a job seekers allowance from the government;
Lying in order to receive unemployment benefit.
The Issue
Some countries give those of its citizens and residents who are unemployed statutory benefits until they are back in work. Some people may try to exploit this, claiming such benefits while they are working and receiving wages, which they do not declare.
Ruling
It is obligatory for a Muslim who is earning wages through the work he does to inform the relevant government authorities of this. It is forbidden for a Muslim to claim unemployment benefit while he is in work unless his earnings are within the low-pay limits the government allows for those who are employed. This is the ruling of the European Council for Fatwa and Research.
Evidence
To be in work and claim unemployment benefit at the same time is against the law and a Muslim must always be a law-abiding citizen and honest in all his dealings, including the financial ones. It is forbidden for any Muslim to lie in order to obtain money that he is not entitled to receive.
Sources
Fatawa by the European Council for Fatwa and Research.
Abd al-Azeez ibn Baz, Fatawa Nur 'ala al-Darb.