Calculation of Zakah : how to calculate Zakah on pension

Fatawa Question

Assalamu Alaykum Wa Rahmatullahi Wa Barakatuh, I am enrolled in a pension plan where my company matches my dollar contribution every paycheck. The money is then channeled in an investment fund. I want to pay the Zakah due on the money which increases every paycheck. My question is how should I calculate the due Zakah, is it due on the beginning balance or the ending balance at the end of the year or is their another method I should use ? Also, my wife has an investment policy that was transferred into her name from her parents six months ago. It also increases through a fixed monthly contribution. The problem with the policy is that we took some money out of it so the money is less than what it was when she first received it. Also, we might be taking some more money out of the policy. How can we calculate the Zakah on the policy at the end of the year taking into account the constant change in the balance ? Jazakom Allah Khairan. Al Salam Alikum Jazakum Allahu Khairan for your constant help

Fatwa

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Publication Date

2006-07-04

Main Subjects

Economics & Business Administration
Islamic Studies

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-792331

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