Agency and Zakah

A Guide to Zakah - Understanding & Calculation, Fiqh

One is not obliged to distribute the Zakah by himself to the entitled recipients. He may validly appoint an agent (whether natural person or organization) to pay the Zakah on his behalf.

In appointing such an agent, the Zakah payer must bear in mind that the Zakah obligation is not discharged if the agent fails to distribute the Zakah to the entitled recipients. At the same time, possession of the Zakah amount by the agent will be deemed to be possessed by the principal (Zakah payer) as in the case of those organizations, who are guilty of serious maladministration by collecting Zakah and not distributing the same for a number of years without valid reason.

August 23, 2011

Zakah On The Employees Provident Fund

Contemporary Fatawa, Fiqh

Q. “In Malaysia, 20% of monthly salary is paid to the Employees provident Fund which keeps and manages the funds for us until retirement age. we are not allowed to take the money before retirement except in the case of death of the employee where it is paid to the heirs. How do we treat this asset in the payment of zakat?”

May 3, 2010