Is Zakah applicable on my PF being contributed by me and my employer every month? It is accumulated in Company's PF Fund (including interest calculated by the end of year) for the past 31 years and my retirement is due in 2018. How do I calculate zakah and what do I do of the interest accumulation?
Zakah is not due on your provident fund until has reached maturity and you have access to the money. Once you have been granted access to the money in provident fund then you will be required to pay Zakah from that day. Once Zakah becomes obligatory, it will be on the whole amount of fund and not just the contribution made by the employee and employer.
And Allah knows best.
Mufti Ikram ul Haq
Fatwa Center of America