Zakat on Pension Fund Withdrawal?


How do I calculate my pension fund withdrawal? Should I calculate 2.5% on my withdrawal amount or should I work out the zakaah on each year going back. What is the permissibility of the growth on the contributions?


Since the pension in reference is mandatory and you do not have any control over the investments, then the income you receive from this plan will be halal for you to take. The final amount you receive will be counted as part of your salary including all extra amounts you receive upon leaving the company.

With regards to Zakāt on mandatory pension funds, you are neither obligated to pay Zakāt for the previous years nor upon receiving the money. There is no separate Zakāt for monies invested in a mandatory pension fund. At the end of your Zakāt year, the pension amount that you have withdrawn should be added to your assets and Zakāt should be calculated in accordance with that.

*What do you think about this topic? Please tell me what you think in the comment section below.
*Hit the like button if think this post is useful.
*Support this da’wah effort by following my blog.

Author: Abu Tariq Abu Tariq Muhsin is a zakat officer for Zakat Centre of Federal Territory of Malaysia. A writer, researcher and publisher of various writing focusing on Zakat & Islamic studies.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s