12.14. Lump Sum Payments in Terms of Compulsory Pension and Provident Funds
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Zakat is payable on lump sum payments received by an employee upon retirement, or by his dependent, if the money is held by such recipient for a period of one year as from the date of receipt thereof/ No Zakat is payable for preceding years. Take the following example: An employee under a compulsory pension fund receives a lump sum payment of $100,000 upon retirement on 1st January 2005. His Zakat year ends on 1st January 2006. If the lump sum has not been spent at the end of Ins Zakat year, he will pay Zakat thereon, namely 2.5% of $100,000 = $2,500. On the other hand, if he had used the money to buy a house before the end of his Zakat year on 1st January 2006, no Zakat will be payable thereon. The aforegoing applies to compulsory pension and provident funds in the sense that the employee is obliged as a term of his employment to become a member of such fund and make prescribed contributions.

 

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Sitara-e-Isaar Awarded to Hidaya Foundation

The sister organization of Hidaya Trust, Hidaya Foundation was awarded Sitara-i-Eisaar (Star of Sacrifice) by the Government of Pakistan, in recognition of the results-oriented relief efforts of both the organizations during the 2005 earthquake in Pakistan. It was awarded during a special ceremony held at the Embassy of Pakistan in Washington, DC.

In Keeping with our commitment to the communities in which Hidaya Trust operates, it hires its work force as an equal opportunity employer.  It means that employment decisions are based on merit and business needs and not on race, color, status in the society, ancestry, sex, age, religion, creed and marital status.