Zakah on pension plans and provident funds : must I pay Zakah for provident fund ?

Fatawa Question

Br. Samy at Islam on line, please give details on the country of the questioner, if you have them, because they affect understanding the nature of provident fund, they differ from one country to another. Question Assalamu Alaykum Wa Rahmatullahi Wa Barakatuh, I am an employee and am bound to contribute towards employees general provident fund. An amount has accumulated with the government. I can a portion of this amount by giving a valid reason for which I need the money but have to return that amount through monthly installments which are deducted automatically from my salary. As per rules I am bound to contribute about 6.5 % of my pay towards the fund. But for getting other benefits I am contributing about 35 % of my pay. Now I want to know may I have to pay Zakah for this amount which has accumulated with the government in the shape of this Provident fund. Kindly advise in the light of Quran and Sunnah. Jazakum Allahu Khairan for your constant help

Fatwa

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Publication Date

2006-09-28

Main Subjects

Economics & Business Administration
Islamic Studies

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-792355

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