Zakah (Zakat) is a core pillar of Islam and is mandatory for all Muslims. It is a type of charity and wealth purification that has its own Islamic Zakat rules, which outline when is it obligatory to pay Zakat, as well as who qualifies to receive it.
Zakat can be quite difficult to grasp due to the complex rules surrounding it. To help you understand this mandatory form of charity and to understand when should you pay Zakat, we have outlined the rules of Zakat in simple terms in this blog.
Simply, Zakat is a mandatory type of charity that all adult Muslims who meet the Nisab threshold must pay. This charity is the Third Pillar of Islam and is an obligation, which differentiates Zakat from voluntary acts of giving, like Sadaqah. Zakat is a way to purify one’s wealth by giving a portion of it to those in desperate need. This compulsory act of charity strives to promote social welfare and economic balance within the community.
Zakat has a percentage for those whose wealth exceeds the Nisab threshold, which is typically 2.5% of a person's accumulated wealth. The Nisab threshold is a minimum amount that qualifies a Muslim to pay their Zakat. This threshold was set by the Prophet Muhammad (PBUH) at a rate equivalent to 87.48 grams of gold and 612.36 grams of silver. This must be calculated as its monetary value for today, meaning seeking help from a jeweller is advisable. In today’s calculations the current Nisab value is estimated at:
612.36 grams of silver equates to roughly £493.14
87.48 grams of gold equates to approximately £6192.15
The payment of Zakat in Islam is highly significant and meaningful as its purpose is to cleanse wealth and purify the soul. Zakat translates to “the which purifies” which represents its purpose and significance. This annual Islamic obligation uses a Muslim’s qualifying assets, like gold, silver and land possession, once the Nisab threshold has been met.
The payment of Zakat in Islam is also very important for the Muslim community for various reasons. The main reason that highlights this form of charity’s importance is that it’s the Third Pillar of Islam. This means that if a Muslim gives Zakat, they will be fulfilling that pillar, meaning they have the opportunity to fulfil all Five Pillars of Islam.
As well as this, Zakat brings believers closer to Allah (SWT) as it’s an act of worship. Zakat purifies a person’s wealth and re-distributes the wealth to the needy. Through this, the mandatory form of charity creates a sense of community and bolsters the Muslim community too. This is achieved by relieving the suffering of those who don’t have the means to live.
A common question that often needs to be answered for many Muslims and non-Muslims is “When is Zakat due?” Zakat is due annually once a Muslim’s wealth exceeds the Nisab threshold and has been held for a full lunar year (Islamic year).
When to pay Zakat can be tricky and confusing, but, basically, a believer needs to possess the Nisab threshold to be required to pay. The Nisab is the minimum amount of a portion of wealth that a person owns, making them eligible to pay Zakat. They must possess this threshold for a complete Islamic year to be obligated to fulfil this act of charity.
As for an exact date for when Zakat is due, this varies for each individual as it all depends on when a Muslim has exceeded the Nisab threshold. With that said many believers like to give their Zakat during the Holy month of Ramadan for added blessings. The Zakat percentage stays the same throughout the year, no matter when you need to pay it.
There are multiple ways to pay your Zakat and it can be confusing to understand the best way to fulfil the obligatory donation. To ensure that your Zakat donation reaches the right people that are in desperate need, it’s advisable to donate to a charitable organisation, like UKIM. We collect, manage and distribute your Zakat for you, reaching those in need quickly with vital resources to help better their lives. The quickest way is to donate your Zakat via our website, using the provided Zakat calculator to give the correct amount based on your wealth.
It's important to remember that Zakat is never a fixed amount. It is calculated at 2.5% of a person's total assets above the Nisab threshold. The assets can be:
Any short-term liabilities, such as personal loans, rent/mortgage and monthly bills due in the Zakat month are subtracted from a Muslim’s asset total. On top of this, items that are classed as necessities to live, like your vehicle and home, are excluded from the calculation too.
Zakat rates differ for farmers and owners of precious resources as well. These are:
Another confusing question for many is “When should you pay Zakat?” and “When is it obligatory to pay Zakat?” These questions aren’t necessarily about when Zakat is due, but it’s about understanding who needs to pay Zakat. For this, there are a few Islamic rules stated for Muslims to understand when is it obligatory to pay Zakat. These Islamic guidelines are found in the Quran and highlight that a person needs to be:
As well as needing to understand when should you pay Zakat, it is imperative to know who can receive it. Islamic guidelines also outline who is eligible to receive Zakat donations to help them out of poverty and hardship. These people include:
Pay your Zakat with UKIM to help hundreds of people live easier and healthier lives. Over 7.4 million people living in the UK are affected by loneliness, and sadly, every day 16 people commit suicide. Millions of others are living below the poverty line and thousands of Muslims in the UK need help with shelter, food for Suhoor and Iftar and prayer mats and books.
We strive to give those in need hope again to see the light at the end of the tunnel and free themselves of poverty. Help us to reach more people by making a generous Zakat donation today. The more funds we have, the more people we will be able to give hope to Insha-Allah (God-willing).
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