• Miscellaneous >> Halal & Haram

    Question ID: 32968Country: India

    Title: zakat on provident fund

    Question: I have done govt. job for the period of 42(forty two) years. During this period Provident fund was deducted from my monthly salary during the entire period of 42(forty two) years. Now on my retirement a sum of Rs 10 lacs (appx) has been paid by the govt. to me on account of my provident fund so deducted as stated above. This sum of Rs 10 lacs includes Rs 3 lacs interest pertaining to the entire periods of 42 years. Kindly advice me in the light of hadees as well as in the light of others Islamic laws :- 1. How much zakat is payable by me for the entire period of 42 years. 2. Who is the entitle for the amount of interest to whom it may be donated. Whether this may be donated to non muslim also.

    Answer ID: 32968

    Bismillah hir-Rahman nir-Rahim !

    (Fatwa: 00/00/M=1432) The condition of interest does not apply to the amount that is deducted from the salary each moth in the name of PF and the government or institution adds same amount and deposits it in the fund as well as interest is received on it. The reason is that the employee does not deposit it by his consent rather the government deducts some amount before the employee receives his salary. And the employee receives the total amount after his retirement. That amount is halal for you. And the zakah of complete 42 years is not obligatory on you, rather you will have to pay zakah of that year only in which you received the amount.

    Allah (Subhana Wa Ta'ala) knows Best

    Darul Ifta,

    Darul Uloom Deoband, India