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Islamic Finance


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Ajr


An Arabic term that generally translates as remuneration, wage, recompense, consideration, commission, rate, price, or fees, among others. Ajr is usually paid or charged against services rendered, work done, tasks performed, etc. For example, in an employment contract, ajr is the salary or wage paid by an employer to an employee in return for the work done by the latter.

Ajr may come in many forms including market rate of compensation (or rate of comparables, ajr al-mithl) or remuneration unilaterally set and offered by a party commissioning another (like in a contract of jualah or wakalah, etc.)

Ajr may also denote ujrah/ ujra.


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