IslamQA

Does one have to give zakat on one’s retirement fund? 

Answered according to Hanafi Fiqh by Qibla.com

Answered by Shaykh Abu Usamah

Does one have to give zakat on one’s retirement fund?

Answer:
In the Name of Allah, Most Gracious, Most Merciful

Al-Salam alaykum

If the monthly contribution from his salary towards this fund is deducted at source by the employer without the employee’s being given this amount then there is no Zakah on that wealth until the same is received by the employee. This is because in such case the employee has not yet become the owner of that wealth.

However if  the employee voluntarily contributes to a retirement fund from his own wealth then he will be liable for Zakah yearly on the contributions he has made plus any profit he has accrued thereby. In this case it is simpler to pay the Zakah each year although he can pay the Zakah for all the preceding years when he in reality receives the money.

And Allah Ta`ala Knows Best.

Abu Usamah

This answer was indexed from Qibla.com, which used to have a repository of Islamic Q&A answered by various scholars. The website is no longer in existence. It has now been transformed into a learning portal with paid Islamic course offering under the brand of Kiflayn.

Find more answers indexed from: Qibla.com
Read more answers with similar topics:
Subscribe to IslamQA Weekly Newsletter

Subscribe to IslamQA Weekly Newsletter

You will receive 5 Q&A in your inbox every week



We have sent a confirmation to you. Please check the and confirm your subscription. Thank you!