Zakat is the obligatory portion of wealth that eligible Muslims give to those in need. Wheras the word literally means "purification" and "growth," the act of giving Zakat cleanses the believer's wealth and soul while fostering social justice within the global community.
Who is Required to Pay Zakat? (The Nisab)
Zakat is mandatory for every adult, sane Muslim who possesses wealth above a certain threshold, known as the Nisab, for a full lunar year (Hawl).
- Nisab Threshold: The value equivalent to 87.48 grams of gold or 612.36 grams of silver.
- Debt Deduction: Before calculating your Zakat, you should subtract any immediate debts from your total assets.
How to Calculate Your Zakat
Zakat is calculated at a rate of 2.5% (or 1/40th) of your surplus wealth. This includes cash, gold, silver, shares, and business inventory.
Simple Formula:
The Eight Categories of Recipients
The Quran (Surah At-Tawbah, Verse 60) explicitly mentions eight groups of people who are eligible to receive Zakat:
- The Poor (Al-Fuqara): Those who have no income or property.
- The Needy (Al-Masakin): Those who have some income but not enough to meet basic needs.
- Zakat Administrators: Those tasked with collecting and distributing Zakat.
- New Muslims: Those whose hearts are to be reconciled to Islam.
- The Captives: To help individuals gain their freedom.
- The Debtors: Those overwhelmed by debt they cannot pay.
- In the Cause of Allah: For the benefit of the community and the spread of Islam.
- The Wayfarer: Travelers who have become stranded or are in need of help.
Who Cannot Receive Zakat?
There are certain people to whom you cannot give your Zakat, as you are already responsible for their maintenance:
- Parents, grandparents, and great-grandparents.
- Children, grandchildren, and great-grandchildren.
- Your spouse (A husband cannot give Zakat to his wife as he is responsible for her upkeep).
- Wealthy individuals who already possess wealth above the Nisab threshold.
- Non-Muslims (they can be given general charity/Sadaqah, but not Zakat).