Q. "In
Malaysia, 20% of monthly salary is paid to the Employees provident Fund
which keeps and manages the funds for us until retirement age. we are
not allowed to take the money before retirement except in the case of
death of the employee where it is paid to the heirs. How do we treat this
asset in the payment of zakat?"
(Ibid)
A. If 20% of the salary is deducted at source without giving this
amount to the employee, zakah is not payable on the amount kept in the
employees' Provident Fund until the same is received by the employee.
When an employee receives it on his retirement, the amount so received
shall from part of his zakatable assets of that year only, and such part
os it as is not spent before the valuation date shall be subject to zakah,
and zakah will be payable on the aggregate balance of his assets (including
the balance of the amount received from the Fund) on the valuation date.
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