How is Wasiyyat paid on shares received from an employer under an ESPP (Employee Stock Purchase Plan) or as RSUs (Restricted Stock Units)?

ESPP. When a Musi enrols in an ESPP, a set percentage of pay is deducted from each paycheck and held by the employer. At the end of the offering period — typically six months — the accumulated deductions are used to purchase company shares, usually at a discount to the market price.

Hissa Amad is payable both on the amounts deducted from each paycheck and on the gain arising on those shares. A Musi may discharge this in either of two ways:

• pay Hissa Amad on the deducted amounts as they arise, and then on the gain when the shares are sold; or
• pay Hissa Amad once, at the time of sale, calculated on the full sale proceeds.

RSUs. RSUs vest according to a schedule set by the employer, commonly over a number of years. Hissa Amad is payable on the net proceeds when the vested shares are sold.