WHAT IS ZAKAH
Zakah is one of the Pillars of Islam and an islamic obligation that must be performed once a year. Zakah is not an option it is a compulsory act for all Muslims. It is an act in which one pays 2.5% of their annual savings to those in need. It is a religious duty which washes away impurities from our provision and ensures excess wealth is distributed amongst those in need.
WHO HAS TO PAY?
Zakah must be paid by the following people:
The Mentally Sane
In complete ownership of the Nisab
When Should Zakah Be Paid?
Zakah is paid when two conditions are met:
The Nisaab: the minimum amount of wealth a Muslim must possess before they become eligible to pay Zakat.
The Hawl: A luner Year (354 Days/Islamic Year) has passed on it after reaching the Nisaab .
The Nisab was set by the Prophet Muhammad (peace be upon him) at a rate equivalent to: 87.48 grams of gold and 612.36 grams of silver. In today’s day and age we do not use silver or gold as monetary exchange so when calculating your Zakat, you need to find out the equivalent of the rates the Prophet (peace be upon him) set but in your local currency.
This can be done by checking the market rate of gold and silver today. If the money comes to less than the nisaab amount then no Zakah is due.
The current Nisaab price of Gold is: £2727.45 (Based on £31.18 per gram)
The current Nisaab price of Silver is: £248.01 (Based on £0.41 per gram)
HOW MUCH DO I PAY?
One Ummah uses the value of Gold as the standard for the Nisaab, so the minimum current amount is: £2727.45 before Zakah is due to be paid. For example if a year had passed on this amount you would pay 2.5% of this which would be £68.19. If you had £5,000 in wealth/assets saved and a year had passed on it then you would pay £125.00.
Those things classed as your wealth and Assets which are Zakah applicable:
Cash – in the bank or at home and that which is saved for anything specific.
Gold and Silver – The value of it in your local currency according to the Nisaab.
Shares – The value of the shares you own at their market price.
Money owed to you – If it is expected to be repaid.
Your Business – The balance sheet value of the Stock you possess.
Your Properties – Any rental income that’s been saved of the year. The equity value of your investment property portfolio is not included as part of your assets in the Zakat calculation.
Use our Zakah Calculator to work out how much you need to pay, its quick and easy!
WHO IS IT PAID TOO?
The Qur’an specifies those people whom Zakah is paid to in Surah and they are broken down into 8 different categories:
The Poor (Al Fuqaraa)
Those who do not have enough to suffice for 6 months.
Those whose Hearts are inclined towards Islam
The Needy (Al Masaakin)
Those who do not have enough to suffice for 12 months
Those in Slavery
To free someone in bondage or to free a slave.
The Collectors of Zakah
Those who collect Zakah for a living (as a job or work)
Those in Debt
Towards those in debt.
In the Way of Allah (Fesabilillah)
Those striving in the way of Allah
A Destitute Person travelling with little to no resources.
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