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Zakat on money received at the end of employment

Question

Zayd had been working for twenty-three years in a firm owned by a Muslim. The officers and managers came to have bad intentions and wanted to get rid of him, and such conditions were created that Zayd fell into severe difficulty. After twenty-three years Zayd was suddenly transferred a thousand miles away from Delhi. He tried very hard to have the transfer cancelled, but no one listened. When Zayd reached that place, it turned out that there was no work there, and he was told, “Go back,” so Zayd came back.

Answer

The nisab of zakat in silver is 52½ tolas (a unit of weight, ≈ 11.66 g), and in gold 7½ tolas. Hence zakat will be wajib on an amount with which that much silver can be bought — provided that a year passes over this amount and at the end of the year the amount is present to the extent of the nisab, even if during the year the nisab amount does not remain at the level of the…

Source: Fatawa Mahmudiyya

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