Zakah

Zakah (also known as 'Zakat'), is the giving of alms to the poor and needy. Muslims pay Zakah as an act of worship, as it is actually the third pillar out of the five pillars of Islam and is mentioned alongside Salah (second pillar) in 82 verses of the Qur'an. Although Zakah is sometimes compared to a tax, it isn't like taxes imposed by governments. Zakah is a spiritual duty, solely for the sake of Allah.
what does Zakah mean?
The Arabic word 'Zakah' literally means 'to cleanse' or 'purification' and by fulfilling this religious duty, Muslims ensure that their wealth has been purified for the will of Allah.
What are the benefits of Zakah?
Zakah has many spiritual and worldly benefits. Muslims believe that by paying Zakah they fulfil the commandment of Allah and acknowledge that all of their wealth comes from Allah as a loan. Besides, Zakah is about practicing self-discipline and freeing oneself from greed, the love of money, and the love of oneself. And by performing it, Muslims learn to behave with honesty and to place less importance on material possessions.
what does Zakah mean?
The Arabic word 'Zakah' literally means 'to cleanse' or 'purification' and by fulfilling this religious duty, Muslims ensure that their wealth has been purified for the will of Allah.
What are the benefits of Zakah?
Zakah has many spiritual and worldly benefits. Muslims believe that by paying Zakah they fulfil the commandment of Allah and acknowledge that all of their wealth comes from Allah as a loan. Besides, Zakah is about practicing self-discipline and freeing oneself from greed, the love of money, and the love of oneself. And by performing it, Muslims learn to behave with honesty and to place less importance on material possessions.
"True piety is this: to believe in God, and the Last Day, the Angels, the Book, and the Prophets, to give of one's substance, however cherished, to kinsmen, and orphans, the needy, the traveler, beggars, and to ransom the slave, to perform the prayer, to pay the zakah." Surah Baqarah, Ayah 177 (Qur'an 2:177)
Who has to pay Zakah?
Every Muslim who has reached puberty, is of sound mind, and has above the minimum required amount of wealth (Nisab) is required to perform Zakah.
Who is entitled to receive Zakah?
A hadith of the Prophet Muhammad, narrated by Ziyad ibn al-Harith narrates that there are a total of 8 categories entitled to Zakah, including:
When is it paid?
The date at which wealth equals (or is greater than) the Nisab should ideally be marked as the beginning of the first Zakah year. It should then, ideally, be paid once one lunar year (Hawl) has passed. Many people choose to give their Zakah in the month of Ramadan, because it is a time of great blessings and the rewards for good deeds are believed to be even greater in this sacred month.
How is Zakah calculated?
Zakah is compulsory on four types of wealth; money, trading goods, agricultural products, and animals. Money includes financial assets such as cash, bonds, stocks, savings, loans given, and funds received.
The usual amount donated is 2.5% of a person's total cumulative wealth in one lunar year. The value of the Nisab in prophetic tradition is 87.48 grams of pure gold, or 612.36 grams of silver. The monetary value of the Nisab will vary by current prices, and scholars recommend that Muslims apply the Nisab value of silver instead of gold, to ensure that more people are eligible for Zakah.
Zakah is not payable on precious stones like pearls, diamonds, sapphires, rubies or corals unless they are used for trading purposes.
Every Muslim who has reached puberty, is of sound mind, and has above the minimum required amount of wealth (Nisab) is required to perform Zakah.
Who is entitled to receive Zakah?
A hadith of the Prophet Muhammad, narrated by Ziyad ibn al-Harith narrates that there are a total of 8 categories entitled to Zakah, including:
- The Fuqara’ (the poor)
- Al-Maskin (the needy)
- Aamileen (Zakat collector)
- Muallafatul Quloob (poor and needy who recently converted to Islam)
- Ar-Riqaab (slaves; Zakat can be used to purchase their freedom)
- Ibnus-Sabeel: A stranded traveller in need of financial assistance.
- Al Ghaarimeen: A debtor
- Fi Sabeelillah: Those who are away from home in the path of Allah
When is it paid?
The date at which wealth equals (or is greater than) the Nisab should ideally be marked as the beginning of the first Zakah year. It should then, ideally, be paid once one lunar year (Hawl) has passed. Many people choose to give their Zakah in the month of Ramadan, because it is a time of great blessings and the rewards for good deeds are believed to be even greater in this sacred month.
How is Zakah calculated?
Zakah is compulsory on four types of wealth; money, trading goods, agricultural products, and animals. Money includes financial assets such as cash, bonds, stocks, savings, loans given, and funds received.
The usual amount donated is 2.5% of a person's total cumulative wealth in one lunar year. The value of the Nisab in prophetic tradition is 87.48 grams of pure gold, or 612.36 grams of silver. The monetary value of the Nisab will vary by current prices, and scholars recommend that Muslims apply the Nisab value of silver instead of gold, to ensure that more people are eligible for Zakah.
Zakah is not payable on precious stones like pearls, diamonds, sapphires, rubies or corals unless they are used for trading purposes.