Question:

 

From my understanding, Zakat is payable on monies available and accessible to one over a period, however, pension and provident fund investments are not available to us in any given period until we reach the age of retirement? Technically we should be paying Zakat when money of this nature is received and not current values as we are not in possession of this?

 

Similarly, I received company performance shares (BEE), only payable after a period of between 3 – 5 years, If you leave the employ of that company during this period you forfeit the shares, the share is only available to you after a set period, my understanding, zakat is payable at the time the  money is available to you or paid to you?  I don’t own that share now.

 

Answer:

 

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

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

 

1. If one makes a voluntary contribution in the form of premiums to a pension or provident fund, then the premiums amount is zakatable. If the premiums are compulsory and deducted from ones wages and the employee has no option, then the entire amount is exempt from zakat. If the premiums are paid voluntarily, then the premium amount is zakatable.

2. The BEE shares are exempt from zakat.

 

And Allah Knows Best. 

Mufti Ebrahim Desai. 

KHARWASTAN

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