Prayer TimesKazakhstan's current pension system is considered multi-tiered. The first tier covers pension payments (solidary and basic pensions) funded by the state budget.
The second tier is a mandatory accumulative system, which includes employees’ mandatory pension contributions of 10% and employers’ mandatory professional pension contributions of 5% for employees working in hazardous conditions.
The third tier is a voluntary accumulative system, which covers pension payments from voluntary pension contributions.
In principle, wealth on which zakat is due must be “fully owned.” That means the person giving zakat must have full ownership, free disposal, and actual possession of the wealth.
The Qur’an says: “Take zakat, charity, from their wealth” (al-Tawbah, 103), and “In their wealth there is a known right for the beggar and the deprived” (al-Dhariyat, 19).
The Prophet (ﷺ) said: “Allah has made zakat obligatory on their wealth, to be taken from their rich and given to their poor” (al-Nasa’i).
Therefore, the Sharia does not require zakat to be paid on money accumulated in a pension fund. This is because, except for certain cases specified by law, a Kazakhstani citizen cannot access the money in their pension account before the designated time.
According to the Hanafi madhhab, no zakat is due for previous years; zakat is only calculated from the day the money comes into your possession (Fath Bab al-Ghina, 2/9).
Ali (may Allah be pleased with him) said: “No zakat is due on wealth that is not fully possessed or in one’s hands.”
This is because zakatable wealth must have the potential to grow. Wealth that cannot be freely disposed of does not have this potential (al-Hidaya, 2/159). Therefore, no one is required to pay zakat on funds accumulated in a pension fund. Zakat is only due on the money once it is received from the pension fund, whether at retirement or for another permitted reason. No zakat is due for the years the money remained in the fund.
Prepared by Hasan AMANKUL
This content was drafted with AI assistance and reviewed by an editor.