Q: At Ramadan time employers give the employees zakaat money. Does this qualify as zakaat given? Can we accept zakaat from our company? JAK.

A:Asalamualikum, Your inquiry is vague. For learning purposes, let me shed some clarity to your potential inquiry. 

Zakah is an obligation that falls under the category of fard (the mandatory). It has specific stipulations and requirements associated with it, and it should not be given with the expectation of a return or personal gain. Zakah is intended to empower the recipient, providing genuine support to those in need. Similarly, Rasool  ﷺ  said: Whoever gives charity with the intention of seeking reward from Allah, Allah will return to him(her) more than what s/he gave. (Sahih Muslim)

Giving Zakah incorrectly has in it the potential to invalidate the act of giving zakah and disqualify it from being accepted by Allah (SWT) as Zakah. Just like going to Hajj to the wrong place or in the wrong month invalidates the deed, such can also apply to Zakah.

Let us help you understand this with a scenario: If an employee in a given industry earns $3,200 before taxes for 40 hours of work, has a family, and their rent, utilities, and living expenses are around $2,800 and it is clear that this individual is the sole income earner in their household; and you are paying them according to industry standards, including overtime where stipulated, and you know that they are responsible with their finances but are currently facing temporary hardship, it would be permissible to provide them with Zakah if they qualify as per Nisab rules due to their financial situation.

However, it is crucial to remember that Zakah is not to be given with the expectation of receiving a return or as an investment or work related loyalties. As a precautionary measure, the zakah should not be given with the regular paycheck either, it should be given separately and with the intention that the employer is not seeking anything in return and given as a separate gift.

As an added separate note, Allah (SWT) instructs us in the Quran: O you who have believed, do not nullify your charities with reminders or injury, like one who spends his/her wealth to show off to people and does not believe in Allah – 2:264. Thus, employers should be cautious of how they dispense their Fard obligation.

 Allah Certainly Knows Best.