Does Zakat apply on restricted funds?

Question:

What do the scholars and experts of Shariah say regarding my situation?

I live in Italy, there is a special ‘employee fund’ which the employers hold according to Italian law.  it is deducted from their salary every month. It is not paid until the employee leaves the firm.  The employee doesn’t have access to this, except in exceptional situations. Is zakat due on this money which the employer is holding?

Answer:

In the above-mentioned case, Zakat will not be obligatory because for the obligation of Zakat it is necessary that he has the wealth and can spend it. The conditions for the obligation of Zakat on a Muslim are:

  1. The money must be earned or gained in halal way.
  2. Ownership and reaching the lower limit (Nisab) this varies according to the type of wealth. The ‘nisab’ must be from the money more than the original and necessary needs, such as food, drink, clothing, housing, and everything necessary for living.
  3. The completion of the full year, which means that a full Hijri year has passed since the possession of the money.
  4. The money should not be debt owed to someone else.

According to these conditions, the employee fund is not in your possession, so Zakat will not be obligatory on it.

And Allah ﷻ knows the best

This fatwa is written by Dr Hafiz Muhammad Munir Al-Azhari

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