Darul Iftaa Mahmudiyyah

Are pension schemes/funds set by the company permissible?

Published as 1. Are pension schemes permissible? 2. How to give Zakaat on this money? 3. Question on Zakaat on investment.

· 26 Shaʻban 1433 AH1 min readFatwa 21466English

Question

1. Are pension schemes/funds set by the company permissible?

2. How do you take out Zakaat on this money? You only get this money in your possession once you are over 63 years?

3. A person had an investment, and required the money to be released. He has already kept some money aside for Zakaat (including this investment). However he was told that he could not get this money as yet. Does he still have to pay Zakaat on this money which is not in his possession?

JazakAllah.

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

1/2) We cannot issue a ruling on pension schemes/funds without studying the contract of the pension fund/scheme in reference.

3) It is obligatory to pay Zakaat (alms) on the invested money in reference.[1]

And Allah Ta’āla Knows Best

Moulana Ismail Desai,
Student Darul Iftaa
Durban, South Africa

Checked and Approved by,
Mufti Ebrahim Desai.

References (Arabic / Urdu sources)

1 و سببه أي سبب افتراضها ملك نصاب حولي تام (الدر المختار، ج 2، ص 259، ايج ايم سعيد)

مالك لنصاب من نقد و لو تبرا (نور الايضاح، ص 209)

Answered by
Moulana Ismail Desai
Checked & approved by
Mufti Ebrahim Desai
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/21466
Fatawa SA: https://fatawa.co.za/fatwa/askimam-21466

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