Inheritance of deceased's provident fund and balance of pay
Fatwa No: 326518

Question

One of my relatives, who was an employ of a semi-government firm, passed away before reaching retirement. His wife wants to know whether the undermentioned amount should be included in inheritance or not? Is it for the family or for all legal inheritors?
a. At the time of death, the husband had some entitled leave left. The firm gave some amount in lieu of those leaves which he did not take and now gave that amount to his wife.
b. There were some months of pay left. There were also some allowances that were not given previously. The husband also had a provident fund. Whosoever, retires or dies, his provident fund is doubled and then given to him or his family by the firm.

Answer

All perfect praise be to Allaah, The Lord of the worlds. I testify that there is none worthy of worship except Allaah and that Muhammad is His slave and Messenger. 

What is given in lieu of leaves that the employee was entitled to as well as his remaining monthly pays and his balance of allowances, all this is included in his inheritance, and it should be divided among all his heirs according to their legal shares.

As regards the money that the firm gives with the provident fund, then if the firm gives this as a right of the employee, then it is included in the inheritance and should be divided among all the heirs. However, if the firm gives it as a grant to the employee's wife or his children, then it is for those specified by the firm. If the firm did not specify anyone and made if for his heirs, then it is for all the heirs.

Allaah knows best.

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