The Monthly Association Among Employees and the Zakah of Its Funds

Question:
He says: Honorable Shaykh, may Allah grant you success, we are a group of employees who engage in what is called a mutual association. Each person pays a portion of his salary and receives the funds in a specific month. Is it permissible to pay zakah from this money, even though a lunar year has not passed over it?

Answer:
First, I do not see this practice as permissible. It is a loan that yields benefit, because you did not lend to your colleagues except on the condition that they lend to you, or it is a conditional loan. Even if they did not lend to you, you would not lend to him. This is the meaning of two sales in one sale and a loan that yields benefit. I do not see the operation as valid from the start, and I hold that a person should not enter into it.
One needs a loan; he borrows from one of his brothers or from whoever lends to him without being bound to a group by this system that they have innovated and brought to us from foreign lands. Some problems may arise; some problems may occur. The employee who took the people's money may be transferred, and where do the money of these people go? I do not see it. As for zakah, each person pays zakah on his share; each person pays zakah on what he paid. Yes.