Basics

Do I need to pay zakat on child benefits I receive from the government?

Short Answer: Yes.

The parent in whose account the money is deposited would pay zakat on the child benefit money still in their possession on their zakat date (provided their zakatable assets reach nisab).

Long Answer

The question of whether zakat is due to child benefits hinges on the ownership of the wealth. To ascertain whether zakat is due and who is responsible for it, it is crucial to determine the actual owner of the child benefits:


Government’s Intention:

The government generally provides child benefits to assist parents with the expenses of raising children. The funds are deposited into the parent's account, and the parent has control over the expenditure of these benefits.


Account Holder’s Ownership
:

Since the funds are deposited into the parent's account and the parent has discretion over their use, it is reasonable to conclude that the parent is the owner of the wealth. The government essentially gives the money to the parent to manage for the benefit of the child.Consequently, as the account holder, the parent would be responsible for paying zakat on whatever amount of these funds are still in their possession if their total zakatable assets (including the child benefits) reach the nisab.

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