Zakat
As one of the pillars of Islam, zakat is a form of obligatory charity that has the potential to ease the suffering of millions.
pillars of Islam
“And establish prayer and give Zakat, and whatever good you put forward for yourselves – you will find it with Allah.” (2:110, Qur’an)
What is Zakat?
Zakat is the annual payment made by Muslims to support those most in need. It is one of the Five Pillars of Islam and is a key part of the Islamic faith. By donating a percentage of your wealth in order to help those less fortunate than yourself, you can please Allah (SWT) while supporting your brothers and sisters across the world.
Who is Eligible for Zakat?
who is eligible to pay Zakat and who is eligible to receive Zakat.
As defined by the Zakat rules, those eligible to pay must be:
- Muslim.
- Of sound mind.
- Past the age of puberty.
- Have positive cash or goods flow.
- Have a total personal wealth higher than the Nisab value.
Gharmin
Anyone in unmanageable debt
Fisabillillah
Anyone who fights for Allah (SWT)
Ibnus Sabil
To assist stranded or struggling travellers
Muallaf
Those new to the Muslim faith or friends of the Muslim community
How Much Zakat Do I Need to Pay?
Zakat is calculated on the following:
- 2.5% on annual savings and personal wealth .
- 5% on farmer's assets where crops are irrigated out of the farmer’s pocket
- 10% on farmer's assets where crops are irrigated by rain
- 20% on precious resources found on your property within the lunar year, such as oil, gold and silver
What Needs to Be Included in My Zakat Calculation?
Your assets are considered a total sum of the following:
- Cash in savings, either in the bank or at home
- Funds raised for special circumstances, i.e. wedding, hajj, property deposit
- Total value of held shares at market value
- Total value of the stock you hold if you own or run a business
- Total value of rental income from owned property
- Any money in debt to you that you expect to see returned