Category: Charity, Obligatory (Zakaat)
Fatwa#: 38580
Asked Country: Switzerland

Answered Date: Jul 01,2017

Title: How do I give Zakat on a voluntary retirement savings plan?

Question

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

Answer

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.

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