Ujrah
أجرة
Pronunciation: OOJ-rah
A fee or wage charged for services rendered — the Islamic basis for fee-based financial services.
Definition
A fee, wage, or commission charged for services rendered. Ujrah provides the Islamic legal basis for fee-based financial services that avoid interest. Instead of charging interest on a loan, an Islamic bank may charge a service fee (ujrah) for processing, administration, or advisory work.
The fee must be for a genuine service, clearly disclosed, and not disguised interest. Ujrah is commonly used in Wakalah contracts (where an agent charges a fee for managing investments) and in some Takaful models.
Related Terms
Wakalahوكالة
An agency contract where one party appoints another to act on their behalf for a fee.
Ju'alahجعالة
A service-for-fee contract where payment is contingent on completing a specified task.
Ijaraإجارة
A lease or rental agreement — one of the three main halal home financing structures used in Canada
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Ujrah (أجرة) — A fee or wage charged for services rendered — the Islamic basis for fee-based financial services. A fee, wage, or commission charged for services rendered. Ujrah provides the Islamic legal basis for fee-based financial services that avoid interest.
- A fee or wage charged for services rendered — the Islamic basis for fee-based financial services.
- Category: Contracts
- Related: Wakalah, Ju'alah, Ijara
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This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-07-01
Editorial Team, HalalWallet
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