Question (Q-81)
I have entered into a pension scheme due to which I contribute a specific amount of money every month. Is Zakāh only necessary upon the amount that I contribute or is it also necessary upon the amount that is contributed by my employer as well? I will only receive the money that is gathered in the pension scheme when I retire. Do I have to pay Zakāh annually from now or will I have to pay it when I receive the money?
Answer:
If the money in the pension scheme reaches the threshold (Nisāb) of Zakāh either by itself or combined with other wealth that is owned by the member of the scheme and all prerequisites for the obligation of Zakāh are found then Zakāh is annually obligatory regardless of whether it is money contributed by the employee or by his employer. The easiest way in this regard is to pay Zakāh annually from the offset. Otherwise when the employee receives the payment after retirement, it will be necessary for him to backdate and pay the Zakāh for previous years.
It is stated in Durr ul Mukhtār,
فتجب زكاتها إذا تم نصابا وحال الحول لكن لا فورا بل عند قبض أربعين درهما
“Its Zakāh (the Zakāh of such money that is owed) is necessary when the threshold is complete and a year has passed but not immediately. Rather, it is necessary when he takes into his possession forty Dirham (i.e. one fifth of the minimum amount of the threshold).” (Durr ul Mukhtār published with Radd ul Muhtār, Volume 3, Page 281)
It is stated in Bahār e Sharī’at, Volume 1, Page 906,
“The Zakāh on Dayn ul Qawī (a secure loan), as long as it is still owed, will be Wājib (necessary) year after year.
However, it is only Wājib (necessary) to pay it, when one-fifth of the Nisāb (threshold) is received.”
It is stated in Al Fatāwā Ar Ridhwiyyah, Volume 10, Page 141,
“If money is saved somewhere and entrusted to someone, Zakāh is unrestrictedly necessary upon that money.”
And Allah knows best.
Written by: Shaykh Omar Khan (Allah preserve him)
Verified by: Mufti Shamsulhuda Khan Misbahi (May Allah preserve him)
