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April 20, 2020
Do I pay Zakat on my pension?
You only need to pay Zakat on your pension if you have access to the funds and they meet the nisab (minimum threshold) after one full lunar year. If the pension is locked and you cannot access it, you do not need to pay Zakat on it. However, once you can access the pension and it becomes part of your wealth, you must pay 2.5% Zakat on the amount that is in your control and exceeds the nisab. Please note, some scholars say that if the money is invested (which a pension fund likely is), then this is money one is benefiting from, and Zakat should be paid on it regardless of access. Allah knows best.
Each case can vary, so it's best to assess your situation carefully. You must carefully make all the calculations to make payment of Zakat accurately. For specific situations, Ask an Expert at NZF Canada.
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Your Questions about Zakat Answered
Here you will find more answers to your zakat questions.
Do I pay Zakat on my pension?
You only need to pay Zakat on your pension if you have access to the funds and they meet the nisab (minimum threshold) after one full lunar year. If the pension is locked and you cannot access it, you do not need to pay Zakat on it. However, once you can access the pension and it becomes part of your wealth, you must pay 2.5% Zakat on the amount that is in your control and exceeds the nisab. Please note, some scholars say that if the money is invested (which a pension fund likely is), then this is money one is benefiting from, and Zakat should be paid on it regardless of access. Allah knows best.
Each case can vary, so it's best to assess your situation carefully. You must carefully make all the calculations to make payment of Zakat accurately. For specific situations, Ask an Expert at NZF Canada.
explore faqs
Your Questions about Zakat Answered
Here you will find more answers to your zakat questions.
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