Do I still have to pay zakah on my frozen pension fund?

Q: Do I still have to pay zakāh on my frozen pension fund?

I have a pension which is now frozen where I have selected the funds. The pension is invested in shares. Both myself and my employer had contributed to the pension. The pension has made a profit. Can you please confirm the following:

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  • Do I pay zakāh on the entire fund value?
  • Is zakāh liable at 100% of the fund value or just on the profit or just on the contributions?
  • As it is share based, do I pay on the whole fund or just the percentage of it relating to zakātable assets. As it is based on shares, how would I work this out? I can’t get very specific information from the fund managers.


الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب

A: In essence, whilst you cannot contribute further to the scheme nor have access to the underlying assets, the assets themselves are still being invested with the potential of both profit and loss. If that is the case, the assets still qualify as productive wealth and are liable to zakāh in proportion to the zakātable assets they represent[1].

You should base your calculation on the most reliable information available and then err on the side of caution. If it subsequently transpires that you have underpaid the zakāh due you will need to make that up. If you have overpaid then you will be rewarded.

[1] For a more detailed explanation, please read the Zakah on Pensions research paper on

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