What is the ruling on Zakat for a mandatory savings fund that is operated through impermissible means, and what is the amount that must be disbursed from the illicit earnings, knowing that the funds cannot be accessed until after five years?
It is impermissible to subscribe to a savings fund that invests its money in a Haram (prohibited) manner. The profits generated from the prohibited investment should be spent on public welfare or given to the poor and needy, and no Zakat is due on them because they are ill-gotten gains that one does not truly own. As for the capital invested obligatorily, which cannot be accessed for five years, there is a difference of opinion among scholars regarding its Zakat. The most accurate view is that Zakat is due on it for one year upon its receipt. What is paid by the employer is not subject to Zakat until the employee receives it, at which point a new lunar year for Zakat calculation begins for that amount.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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