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Beneficiaries of Provident Funds


Nasihah (Advice): Abuse of funds


Sayyidatuna Khawlah Ansaariyyah Radhiyallahu Anha says, “I heard Nabi Sallallahu Alayhi Wa Sallam saying, “There are some men who misappropriate Allah’s Wealth (such as the funds of the Muslim State, Zakah etc.). The Fire will be their destination on the Day of Resurrection.” (Bukhari)



Question and Answer:


  1. As salaam Alaykum I require assistance on how to distribute my provident fund to my beneficiaries. What percentage goes to each one. The provident fund is compulsory and is Shariah compliant.50/50 and admin cost paid by the company. Jazakallah.


(Question published with minor editing)


  1. In the case of compulsory provident funds, you are not obligated to distribute or appoint beneficiaries according to the Islamic Law of Succession and Inheritance as it does not from part of your estate. It is regarded as a gift from the company to the beneficiaries.


Hence, you may distribute and appoint the beneficiaries at your own discretion.

And Allah Ta’ala Knows Best

Mufti Ismaeel Bassa

Mufti Ebrahim Desai

(The answer hereby given is specifically based on the question asked and should be read together with the question asked. Islamic rulings on this Q&A newsletter are answered in accordance to the Hanafi Fiqh.) 

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