Zakat on Wages Owed to a Service Person or a Company

CategoriesZakah [309]

Fatwa ID: 04354

Answered by: Imam Abdul-Malik Sheikh

 

Question

 

Zakah is not levied until one actually possesses the money and is in his possession at the end of his zakatable year,  as in the case of wages owed to you.

 

What about the wages owed to a service/ maintenance person or company whose work entails the purchasing of parts to be used in the job. The bill given to the customers reflects both parts and labour. Will Zakah be obligatory upon the monies owed to such person?

 

 

بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم

In the name of Allah, the Most Gracious, the Most Merciful

 

 

Answer:

 

In order for the wealth to be eligible for Zakah the following conditions need to meet:

a) a person has to have ownership of it;

b) be able to use it (this excludes lost wealth property and debt which is denied by the borrower);

c) there has to be growth (e.g. agricultural products, or wealth made or kept for growth, like wealth invested in business or grazing animals, or naturally they are considered growing wealth like gold and silver or any form of money);

d) the wealth has to be in excess over basic needs (e.g. household expenditure such as food, clothes, utility bills etc.);

e) The passing of a lunar year; (f) Nisab (the minimum threshold for Zakat payment)

 

Therefore, in answer to your question, there is no Zakat on wages owed to a service/ maintenance person or company even if the work entails the purchasing of parts to be used in the job.

 

 

Reference:

Al-Fatawa Al-Hindiyyah Vol.1, p.172, Dar al-Fikr, Beirut

 

 

Only Allah knows best

Written by Imam Abdul-Malik Sheikh

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

 

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