What is the ruling on participating in monthly lottery societies, and is Zakat obligatory on the amount received?
First, the "employees' association" (jam'iyat al-muwazzafin) is permissible according to the majority of scholars. Sheikh Ibn Baz issued a to this effect, given the benefit it entails for everyone without harm.
Second, the for this association is determined by the situation of the participant:
a. For the one who has received the money: If it reaches the (minimum threshold) and a hawl (full lunar year) passes over it, then zakat is due on it. However, if he spends it or it falls below the nisab, then no zakat is due on him.
b. For the one who has not yet received the money: If the total amount he has paid reaches the nisab and a hawl passes over it, he must pay zakat on it because it is considered as a debt owed to him by the rest of the members. However, if the monthly installment does not reach the nisab, then the calculation of the hawl begins from the date the total paid amounts reach the nisab.
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