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