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Do we need to pay zakat/ khums the amount that is deducted from the salary by the company?

Q:

Salam, I want to ask regarding 401k deduction from salary, the amount is  been saved in company account and it is not in our hand, do we need to take zakat or khums on this money every year.

A:

Salamun Alaykum

Thank you for your query.

There is no Zakat on money in Shiia Madhhab whereas, there is Khums on the surplus amount.

In your case yes, you will have to pay the Khums IF it is counted as your savings as you will be getting it back in retirement. Suppose if you have $1000 on your khums date, you must pay 20% of this amount in khums but next year you will not have to pay khums on this particular amount. You will have to pay the khums on the added amount only.

 

May Allah(swt) grant you success

Wassalam,

Syed Haider

 

Please recheck Jazakumullah.