What is Zakat
- Zakat is one of the five pillars of Islam. It is the 3rd pillar after Salaat (prayer).
- The literal meaning is Purification. In this case, the purification of a person’s wealth and soul.
- The word Zakat is mentioned 32 times in the Holy Quran
- Zakat amount is exactly 2.5% of all net savings including cash, savings in banks, and other objects or monetary value.
- Jewellery and gold are Zakat-able and must be calculated as part of Zakat.
Zakat is not Wajib (compulsory) on anything that is for personal use such as house, cars, and clothing.
Even an unemployed individual must pay Zakat as long as his total savings meets/exceed the Nisaab amount
The Qur’an mentions eight groups of people on who Zakat should be spent (Surat At-Tawbah 9:60):
- The Fuqara’ (the poor)
- Al-Maskin (the needy)
- Aamileen (Zakat collector)
- Muallafatul Quloob (poor and needy who recently converted to Islam)
- Ar-Riqaab (slaves; Zakat can be used to purchase their freedom)
- Ibnus-Sabeel: A stranded traveller in need of financial assistance.
- Al Ghaarimeen: A debtor
- Fi Sabeelillah: Those who are away from home in the path of Allah
How is Zakat calculated?
- Assets to include in your Zakat calculation are cash (in hand, in bank accounts or money lent to someone), shares, pensions, gold and silver.
- Personal items (your home, furniture, cars, food, clothing) are not included in Nisaab.
There are two measures to determine Nisaab – gold or silver.
- Gold: The Nisaab by the gold standard is 3 ounces of gold (87.48 grams) or its cash equivalent. The price will vary with the current market value of gold.
- Silver: The Nisaab by the silver standard is 21 ounces of silver (612.36 grams) or its equivalent in cash.
The price of gold and silver are examples only and prices can vary from country to country and are dependent on market and regional conditions.
If you wish to calculate your zakat, PLEASE obtain up to date information on the price of gold and silver.
Alternatively use our zakat calculator (UK residents only) or please contact your local mosque or imam.
If you would like more information then please contact us on 0300 80 80 800 or email us at email@example.com