Is zakat obligatory on an amount of one million two hundred thousand allocated for retirement salaries for five years, from which monthly disbursements are made?

Zakat becomes obligatory on wealth if it reaches the nisab (minimum threshold) and a hawl (full lunar year) passes over it. The actual lack of growth in this wealth does not affect it, because dirhams and dinars are inherently capable of growth, and their owner can use them to generate profit. Thus, zakat becomes obligatory on this wealth every time a hawl passes over it, as long as the nisab remains. It is a cause for blessing and growth, as Allah Almighty says: "But whatever thing you spend [in His cause] - He will compensate it; and He is the best of providers." (Qur’an 34:39)