Jamiatul Ulama KZN

Beneficiaries of Provident Funds

· 10 Dhuʻl-Qiʻdah 1438 AH1 min readEnglish

Question

As salaam Alaykum I require assistance on how to distribute my provident fund to my beneficiaries. What percentage goes to each one. The provident fund is compulsory and is Shariah compliant.50/50 and admin cost paid by the company. Jazakallah.

Answer

(Question published with minor editing)

In the case of compulsory provident funds, you are not obligated to distribute or appoint beneficiaries according to the Islamic Law of Succession and Inheritance as it does not from part of your estate. It is regarded as a gift from the company to the beneficiaries.

Hence, you may distribute and appoint the beneficiaries at your own discretion.

And Allah Ta’ala Knows Best

Answered by
Mufti Ismaeel Bassa
Checked by
Mufti Ebrahim Desai
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Source: Jamiatul Ulama KZN — https://jamiat.org.za/beneficiaries-of-provident-funds/
Fatawa SA: https://fatawa.co.za/fatwa/jamiat-23493

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