ABSTRACT
This chapter presents some basic concepts related to the economics of labor in Islam. Labor is well recognized as a factor of production in the Islamic economic system, where it participates in the process of such production. Many scholars have given arguments about the importance of manual as well as mental labor. Al-Faruqi explains that Islam does not distinguish between mental and manual work in social graduation, and both sorts of labor have their own importance and significance. Islahi believes that labor, which is an important economic factor, has been considered in fixing different zakat rates and fulfills the requirements of justice, economy, and equality. Islam condemns earnings in which labor does not participate or is earned by the exploitation of labor. However, some economic activities like joint ventures, that is, mudarabah, do not come under this category because these activities cannot be completed without the participation of labor.
