Zakaah-“Two Pot System”
Question
With regards to provident funds, do I pay Zakaah on the full amount every year, or just on the amount that has matured for the year?
Answer
Firstly, we assume that your query pertains to an involuntary provident fund imposed upon you by your employer. Secondly, it is important to bear in mind that the South African government has introduced a new legislation regarding provident funds known as the, “two-pot system”, which means that some money (one-third per month) now goes into a separate “Savings pot”, which makes it accessible to withdraw.
Since one third of the provident fund is accessible, one will be required to pay 2.5% of the entire amount that is accessible. No Zakaah will be discharged on the remaining two thirds.
Yes, when the fund reaches maturity and is paid out, then when your next Zakaah date comes in (after receiving the funds), you will be required to pay Zakaah on the entire amount.
References (Arabic / Urdu sources)
وروى ابن سماعة عن أبي يوسف عن أبي حنيفة أنه لا زكاة فيه حتى يقبض المائتين ويحول عليه الحول من وقت القبض وهو أصح الروايتين عنه (بدائع الصنائع 2/10)
ومنها الملك التام وهو ما اجتمع فيه الملك واليد وأما إذا وجد الملك دون اليد كالصداق قبل القبض أو وجد اليد دون الملک کملک المكاتب والمديون لا تجب فيه الزكواة (فتاوى عالمگیري 1/172)
(Re: – Kitaab-un-Nawaazil Vol.6 Pg.477)
- Answered by
- Mufti Abdul Kader Fazlani
- Checked & approved by
- Mufti Yacoob Vally Saheb
Fatawa SA is an independent, read-only index of fatawa already published by Darul Ifta Ibn Masood. It is not a fatwa service. For your own situation, ask the issuing Darul Ifta directly.