What Is Zakat? Understanding the Pillar of Purification
Zakat is one of the Five Pillars of Islam, a mandatory act of worship where Muslims donate 2.5% of their surplus wealth to those in need. Derived from the Arabic word meaning “purification”, Zakat cleanses wealth and reinforces social equity.
Why Zakat Is Important in Islam
Zakat as a Pillar of Islam
Alongside Shahadah, Salah, Sawm, and Hajj, Zakat is a religious duty that fosters empathy and economic balance.
Meaning and Etymology of Zakat
The term Zakat signifies purification—both spiritually (removing greed) and financially (sharing wealth).
Zakat vs Sadaqah: What’s the Difference?
- Zakat: Mandatory, fixed at 2.5%, with strict eligibility rules.
- Sadaqah: Voluntary charity, given anytime, in any amount.
Is Sadaqah Voluntary or Mandatory?
Unlike Zakat, Sadaqah is optional but highly encouraged for extra blessings.
Examples of Sadaqah and Zakat in Practice
- Zakat: Donating to a registered Zakat fund.
- Sadaqah: Feeding the homeless or building a well.
Zakat Eligibility: Who Must Pay Zakat?
Who Is Obligated to Pay Zakat?
- Adult Muslims own wealth above the Nisab threshold for one lunar year (Hawl).
- Includes savings, gold, silver, and investments.
What Assets Are Zakatable?
Zakatable AssetsExemptions
- Cash, stocks, business inventory, Personal home, daily-use car.
- Gold/Silver (above 87.48g gold or 612.36g silver) Wedding jewellery (if worn)
What Is Nisab and Its Current Value?
Gold and Silver Nisab Threshold (2025)
- Gold Nisab: 87.48 grams (~3 oz) → $3,913 (varies with market rates).
- Silver Nisab: 612.36 grams (~21 oz) → $954.20.
How Nisab Is Calculated Today
Use live gold/silver prices or a Zakat calculator for accuracy.
How to Calculate Zakat in 2025
Formula: 2.5% × (Total Wealth – Liabilities)
Assets to Include
- Cash, savings, rental income, unused gold/silver.
Liabilities to Deduct
- Pending bills, loans, and mortgages are due within the year.
Example: If your net wealth is 10,000∗∗,∗∗Zakat=2.510,000∗∗,∗∗Zakat=2.510,000 = $250.
Who Can Receive Zakat?
The 8 Eligible Recipients (Quran 9:60)
- The poor (Al-Fuqara’)
- The needy (Al-Masakin)
- Zakat collectors
- New Muslims
- Enslaved persons
- Debtors
- In Allah’s cause (Fi Sabilillah)
- Stranded travellers (Ibnus Sabil)
Can Relatives Receive Zakat?
Yes, if they’re not dependents (e.g., parents, children).
When Should You Pay Zakat?
- After one lunar year of holding Nisab-level wealth.
- Many pay during Ramadan for multiplied rewards.
Zakat al-Fitr vs Zakat al-Mal
Zakat al-MalZakat al-Fitr
- Paid yearly on wealth Paid before Eid prayer
- 2.5% rate Fixed per person (~$10)
Zakat FAQs
Can I pay Zakat in installments?
Yes, as long as the full amount is paid within the year.
Is Zakat due on retirement funds?
Only if accessible within the year.
Can Zakat be given to non-Muslims?
No, Zakat is exclusively for Muslim recipients.
Do I pay Zakat for my home?
No, personal property is exempt.
Can Zakat be used for education?
Only if the student qualifies as poor/needy.
What if I miss a Zakat payment?
Repay missed Zakat immediately with no interest.
Can I donate Zakat to mosques?
No, unless the mosque distributes it to eligible recipients.
Is Zakat required on cryptocurrency?
Yes, if it meets Nisab.
How is Zakat calculated for businesses?
On net assets (stock + cash – debts).
Can I pay Zakat early?
Yes, if you’ve reached Nisab.
