Short answer
Yes, a woman may wear a necklace with Allah's name or a verse on it, in gold or silver, as long as she treats it with respect: take it off or cover it before entering the toilet, and do not believe it protects you by itself. Men should not wear necklaces, since they are women's jewellery.
Permitted for women. It is makruh (disliked) to take something bearing Allah's name or Quran into the toilet uncovered; put it in a pocket or remove it. Wearing it as an amulet believed to protect by its own power is not allowed.
The four schools agree on this.
Explanation
Writing Allah's name on jewellery has a basis in the Sunnah. The Prophet ﷺ had a silver ring engraved with "Muhammad Rasul Allah" which he used as his seal, and he told people not to copy its engraving. So carrying the name of Allah on something you wear is not wrong in itself. The Hanafi scholars only add the duty of respect that comes with it.
Points of respect:
- The toilet: remove it, or tuck it under your clothes or into a pocket, before you go in.
- Ayat al-Kursi and other verses: because they are Quran, many scholars advise not touching the engraved part directly without wudu, though wearing it is fine.
- Showing it: it is jewellery, so the usual rule applies: do not display it to non-mahram men. Under hijab, it is for you and your family.
- Sleeping, showering, intimacy: taking it off for these is better.
The more serious issue is belief. The Prophet ﷺ condemned amulets that people believed protected them in place of Allah. A pendant you wear as a reminder of Allah, or simply as a beautiful piece, is fine. If you feel you cannot leave the house without it because it keeps harm away, that belief needs correcting: protection comes from Allah, through dua and the morning and evening adhkar.
For men, see can Muslim men wear jewellery. For the evening and morning protection, see morning and evening adhkar.
The evidence
Quran, Surah Al-Hajj 22:32
ذَٰلِكَ وَمَن يُعَظِّمْ شَعَٰٓئِرَ ٱللَّهِ فَإِنَّهَا مِن تَقْوَى ٱلْقُلُوبِ ﴿٣٢﴾
That [is so]. And whoever honors the symbols of Allah - indeed, it is from the piety of hearts.
Respecting what bears Allah's name is a sign of taqwa.
Sahih al-Bukhari 5874
Sahih... إنا اتخذنا خاتما ونقشنا فيه نقشا فلا ينقش عليه أحد ...
"We have taken a ring and engraved something on it, so let no one engrave the same."
The Prophet ﷺ wore a ring engraved with words including Allah's name.
Sunan Abi Dawud 3883
Graded sahih... إن الرقى والتمائم والتولة شرك ...
"Spells, amulets and love charms are shirk."
An object believed to protect by itself is forbidden.
Where the ruling is recorded
- Radd al-Muhtar (Ibn Abidin), Kitab al-Taharah, the etiquette of relieving oneself. Entering the toilet with something bearing Allah's name uncovered is disliked.
- al-Fatawa al-Hindiyya, Kitab al-Karahiyya, chapter on jewellery. Gold and silver jewellery is permitted for women.
Checked by our team. For a more accurate answer to your own situation, consult a scholar. Quran translation by Sahih International. Hadith Arabic from the standard editions of the six books and the Muwatta, with gradings as recorded there; the English is our own rendering. Spotted a mistake? Tell us.