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I contribute toward a company pension scheme every month.some time company also contributes toward it.At end of each year a statement show value of schem now;but money would only be availibe to me or my wife after retirment. And if me and my wife dies before retirment age whole money goes to goverment.Do i need to pay zakat on that money???. Money after retiment will be given to me and my wife in installsments.

Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)

 

One of our brothers/sisters has asked this question:

I contribute toward a company pension scheme every month.some time company also contributes toward it.At end of each year a statement show value of schem now;but money would only be availibe to me or my wife after retirment. And if me and my wife dies before retirment age whole money goes to goverment.Do i need to pay zakat on that money???.

Money after retiment will be given to me and my wife in installsments.

2nd question:

Government has opened child investment account;and they contribute certain amount and me and my also contribute some toward it.Money will be avaliable to my child after age of 18.Do I or my wife needs pay zakat on money saved for my child.A statement each year indicate value of saving.

 

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Answer:

 

Zakah on savings pension funds

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is none worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

 

Your Question: I contribute toward a company pension scheme every month.. but money would only be availibe to me or my wife after retirment.

The majority of the scholars in Islam are of the opinion that the value of your contribution towards the pension scheme would be considered as part of your savings and your assets; thus you would indeed be liable to pay the zakah on your share of the value of the accumulated contribution annually at the rate of 2.5% as zakah.

 

Your Question: Government has opened child investment account;and they contribute certain amount and me and my also contribute some toward it.Money will be avaliable to my child after age of 18.Do I or my wife needs pay zakat on money saved for my child.A statement each year indicate value of saving.

Because the scheme is obviously in the name of the child, it is the child (or their guardian) who will indeed be liable to pay the annual zakah on their share of the contribution to the scheme.

 

Whatever written of Truth and benefit is only due to Allahs Assistance and Guidance, and whatever of error is of me alone. Allah Alone Knows Best and He is the Only Source of Strength.

Your brother and well wisher in Islam,

 

 

Burhan


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