Q: Our company has taken out a Sharia Compliant Retirement Annuity for the staff. The company pays the full contribution and it is included as a benefit on our annual salary. Staff have a choice of also contributing extra to this RA , some contribute an extra 3% to 6% of their salary to the RA voluntarily. I do not contribute anything extra towards this. (from next year it is going to be compulsory for everyone to contribute extra from their salaries) The rules of the RA are , if I leave the company I can cash out the RA but will only receive 60% of its value because 40% will go as taxes. Or I can reinvest the whole amount. Please advise if I have to pay zakaat on the value of this RA?
A: There is no zakaat.
And Allah Ta’ala (الله تعالى) knows best.
Answered by:
Mufti Ebrahim Salejee (Isipingo Beach)