Is Zakat payable on funds in a SAYE (Save As You Earn) Scheme for a Royal Mail Employee?

Answered according to Hanafi Fiqh by


Is Zakat payable on funds in a SAYE (Save As You Earn) Scheme for a Royal Mail Employee?

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.


After speaking to the relevant organisations, we understand that Sharesave or Save As You Earn (SAYE) is a tax-efficient cash saving scheme that lets one save towards buying shares in their company. At the end of the savings period, one will have the opportunity (option) to buy shares in their company or take out savings in cash.  The scheme has 2 components: a savings contract and a share option[1].  Furthermore, one may withdraw their funds at any time in this scheme for Royal Mail[2].
Thus, Zakat is binding on the funds currently held in the savings contract.  This is similar to any savings held in a financial institution and thus fully subject to Zakat.

And Allah Ta’ālā Alone Knows Best

Mufti Faraz Adam,
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This answer was collected from, which is operated under the supervision of Mufti Faraz ibn Adam al-Mahmudi, the student of world renowned Mufti Ebrahim Desai (Hafizahullah).

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