Zakat is an obligatory form of charity that every (eligible) Muslim must give on their wealth and belongings. It is 2.5% of a Muslim’s wealth, and this fulfils Zakat as a Pillar of Islam. Those who must give Zakat and those who can receive Zakat must meet a certain criterion.
Who must give Zakat?
Those who are:
- Muslim – non-Muslims do not pay it.
- Adults (Baligh) - children do not pay it.
- Sane/of a sound mind.
“Charity never decreases wealth.” – [Muslim]
Who can receive Zakat?
‘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).
When do you give Zakat?
Many Muslims believe that Zakat must be given in the month of Ramadan. However, this is not correct. Each person has their own date that they need to give their Zakat depending on their own wealth. Your own start and end date for working out when to give Zakat depend on Nisab.
What is Nisab?
Nisab is the amount of wealth that someone must possess for them to be considered wealthy. Those who meet or are above Nisab are required to give Zakat, while those below Nisab are usually eligible to receive Zakat.
Nisab can change, however, because prices of gold and silver and the values of assets can fluctuate.
One must give Zakat a year after they have met the amount of Nisab. Their start date will be the day they met Nisab, and their end date is a year from then. However, someone who falls below Nisab in the year does not need to pay Zakat for that year. Instead, their new date starts when they reach Nisab again.
What must you pay Zakat on?
- Stock that you sell
Zakat on Gold
Gold and silver are the values used to calculate Nisab. Zakat must be given on both gold and silver, as well as other assets mentioned above. There are Zakat calculators that you can use to determine how much to give, but it is important to use a trustworthy and accurate one, especially given the fact that Nisab can change.
You can use the UKIM Zakat calculator here.
“Allah, the Exalted, says, ‘Spend, O son of Adam, and I shall spend on you.’” – Prophet Muhammad, upon him, be peace (Al-Bukhari and Muslim).
Give your Zakat with UKIM.