Muslims are required to pay 2.5% of their wealth to charity to fulfil Zakat. Zakat is a Pillar of Islam and must be fulfilled by every eligible Muslim.
It is very important to correctly calculate the amount one must pay for Zakat, and this can be done by using a Zakat Calculator.
What to Pay Zakat On
These are the following items/properties that Zakat must be paid on:
- Stocks and shares
- Business stock
- Investment properties
How Much Zakat to Pay on Gold
2.5% of the value of the gold you own must be given Zakat for. The value of gold can change and fluctuate, but you can find up-to-date values of gold and silver on the UKIM Zakat Calculator.
The Calculator can work out how much you need to pay on your gold, silver, cash, business assets and liabilities, as well as other outgoings. You can choose for Nisab to be based on the value of gold or silver. In the Hanafi school of thought, silver is usually used for this. Other schools may use gold to work out Nisab.
How Much Zakat to Pay on £1,000
To give Zakat on £1000, you must pay 2.5% of its value. This would be £25 for the cash alone. If one has other assets like gold, silver, stock, and investments, one must pay Zakat on these, too.
Why do we give Zakat?
To fulfil the Pillar of Islam. Giving Zakat allows us to fulfil Allah’s (SWT) commands and help the needy. In Islam, giving charity willingly and generously is encouraged, and by giving Zakat once a year, we are able to help people who are less fortunate than ourselves. This ultimately allows us to be grateful for our wealth and blessings.
The Prophet, upon him, be peace, said: “The believer’s shade on the Day of Resurrection will be his charity.” (Al-Tirmidhi)
Whom does Zakat help?
Your Zakat donations go to the people who need them most. This includes people who desperately need food, water, and other essentials.
‘Charity is for the poor, the needy, those employed to administer it, those whose hearts have been (recently) reconciled (to the truth), the enslaved, those in debt, those who strive in the path of Allah and the wayfarer. An obligation from Allah, and Allah is the Knowing and the Wise.’ (Surah al-Towbah, 60).
Give your Zakat with UKIM.