Should Zakat be paid on Provident Fund?

Question:
Should Zakat be paid on Provident Fund?

Response:
My ordinary understanding on the subject is that the part of the contribution towards provident fund done by the employee is his wealth for which he should pay Zakat. However, the other part contributed by the employer is a promise and would only become a part of the employee’s wealth when it is handed over to him. After that happens, the employee will be obliged to pay Zakat on it. Wa’Allahu ‘Alam Bithawab.

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