As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh
I have a pension fund which my company has offered to me as an optional benefit. I contribute a portion and the company contributes a portion (5% + 5%), toward this fund. The funds are not accessible however should I leave the company I will be entitled to receive both the company’s contribution as well as my contribution.
In relation to the above, I would like to know regarding the payment of zakah:
-Do I have to pay zakah on these funds, as it is only accessible upon retirement or resigning from the company
-If zakat is payable, then do I pay on both parties contribution or is it only payable on my contribution
I look forward to your response.
Shukran
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
We’ve previously answered an inquiry regarding Zakat on voluntary retirement savings plans where the employer also contributes.
For details, kindly see Ask Imam #29670 at the following link: http://www.askimam.org/public/question_detail/29670
And Allah Ta’āla Knows Best,
Mufti Sohail ibn Arif,
Assistant Mufti, Darul Iftaa
Chicago, USA
Checked and Approved by,
Mufti Ebrahim Desai.