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3. Zakat

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What is Zakat in Islam?

Zakat (zakaat, zakah), or almsgiving, is one of the five pillars of Islam. This means that Zakat is mandatory for Muslims, along with the other four sacred pillars of Islam. For every sane, adult Muslim who owns savings, capital or other forms of accumulated wealth over a certain amount – known as the Nisab – he or she must pay 2.5% of that wealth as Zakat.

Eligible Muslims pay Zakat once a year, and it is due as soon as one lunar (Islamic) year has passed since meeting or exceeding the Nisab (certain amount of wealth). The Zakat of every Muslim is then distributed to those who meet the criteria to receive it.

…and those in whose wealth there is a recognised right, for the needy and deprived.

Qur’an | Surah Al-Ma’arij | 70:24-5

What is Nisab?

The Nisab is the minimum amount of wealth a Muslim must own to become liable to pay Zakat. If this amount is owned for one Hijri (Islamic lunar) year, Zakat becomes due. This amount is often referred to as the Nisab threshold.

A sacred pillar of Islam

Zakat is not just a fundamental pillar of Islam, it is also a revolutionary concept which can end extreme poverty – that is the power of Zakat!

And be steadfast in prayer and give Zakat: And whatever good you send forth for your souls before you, you shall find it with Allah.

[Qur’an | Surah Al-Baqarah | 2:110]

It is also a right that the poor have over us, as mentioned in the Qur’an: “Those in whose wealth there is a recognised right for the needy and the poor.” [Qur’an | Surah Al-Ma’arij | 70:24-25]

How much is Zakat?

The donation should amount to 2.5% of your total Zakat eligible wealth.

What are 2 types of Zakat?

The two main types are: 

  • Zakat Al-Mal, is translated to ‘the Zakat of wealth’ and is commonly referred to as Zakat. It refers to the pillar of Islam stating that every sane, adult Muslim who owns wealth over a certain amount – known as the Nisab, must pay 2.5% of that wealth.
  • Fitrana or, Zakat al-Fitr, is a charitable donation of food that must be given before Eid prayer, before the end of the month of Ramadan, for the love of Allah.

What is Fitrana?

Fitrana is a donation often in the form of food that is given before Eid prayer, therefore it must be given before the end of Ramadan. Fitrana must be given by every self-supporting Muslim who has food in excess of their needs, on behalf of themselves and their dependants.

Fitrana (Zakat al-Fitr) differs from Zakat (Zakat al-Mal) in that it is not dependent on earnings or savings. Instead, it is a fixed amount paid for each person at the end of Ramadan.

By contrast, Zakat is calculated as 2.5% of one’s eligible wealth. You can calculate the amount you need to pay here. 

Fitrana (Zakat al-Fitr) is due for every individual in the household. In the Hanafi madhab, the head of the household is responsible for paying it on behalf of children and dependants who cannot pay themselves. In the Maliki, Shafi‘i, and Hanbali madhab, each individual is personally responsible for their own Fitrana, although a parent or guardian may pay on their behalf with their permission.

Zakat, however, is only required from individuals who personally own wealth above a minimum amount, known as the nisab.

Fitrana must be paid within the month of Ramadan. The latest it can be paid is before the Eid prayer begins so that those in need can benefit in time for Eid. However, the annual Zakat can be paid at any time during the year. 

What are the conditions of paying Zakat?

For Zakat to become obligatory, the following conditions must be met:

  • The person must be Muslim.
  • The person must be of sound mind (according to the Hanafi madhab. However, according to the other madhabs, children too may be required to have their Zakat calculated if their personal Zakatable wealth reaches the nisab).
  • The person must have reached puberty (according to the Hanafi madhab).
  • The person must fully own the nisab (minimum amount of wealth).
  • One Hijri (Islamic lunar) year must pass while owning the nisab.
  • The wealth must be Zakatable in nature, meaning it has the potential to increase.

In addition, Zakat must only be given to those who are eligible to receive it in order for it to be valid.

What happens if you don’t pay Zakat?

It is one of the five pillars of Islam, a fundamental tenet of the religion, there are serious consequences for not paying it if you are eligible to do so. As well as facing punishment in the next life, withholding Zakat can also lead to a lack of barakah (blessings) in your wealth and life. 

The severity of not paying Zakat is mentioned many times in the Quran and Hadith. For example: 

“Those who hoard up treasures of gold and silver and spend them not in the way of Allah; give them the news of a painful punishment, on the Day when that (wealth) will be heated in the Fire of Hell and with it will be branded their forehead, their sides, and their backs, (and it will be said to them:) ‘This is the treasure which you hoarded for yourselves. Now taste of what you used to hoard.’” [Qur’an | 9:34-35]

“Whoever is made wealthy by Allah and does not pay the Zakat of his wealth, then on the Day of Resurrection his wealth will be made like a bald-headed poisonous male snake with two black spots over the eyes. The snake will encircle his neck and bite his cheeks and say, ‘I am your wealth, I am your treasure.’” [Hadith | Bukhari]

Is Zakat on income or savings?

Zakat is based on the amount, assets and wealth you own, as opposed to your income. 

According to the Hanafi madhab, for every sane, adult Muslim who owns wealth over a certain amount – known as the Nisab – he or she must pay 2.5% of that wealth as Zakat.

Assets include gold, silver, cash, savings and business assets, which have been in your possession over a lunar year. 

You can use our online calculator to find out if you’re eligible to pay Zakat, and how much you should pay based on your circumstances. 

Who are the 8 recipients of Zakat?

There are eight categories of people who are eligible to receive Zakat, these are:

  • The poor
  • The needy
  • Administrators of Zakat
  • Those who have a reconciliation of heart (those who have embraced Islam or are inclined to it).
  • Those who have been enslaved
  • Those in debt
  • In the cause of God
  • Travellers (including refugees)

A poor person is someone whose property, in excess of his basic requirements, does not reach the Nisab threshold. 

Who is not eligible for receiving Zakat?

It must be paid and received by Muslims. Therefore, unlike Sadaqah, non-Muslims cannot receive Zakat donations and neither those who are wealthy. 

The family of the Prophet Muhammad (Ahlul Bayt descendants from Banu Hashim and Banu Muttalib) are not allowed to receive Zakat or Sadaqah donations. 

Can you give Zakat to a family member?

A recipient of Zakat must not be someone you are Islamically financially responsible for, such as your wife (Hanafi madhab), children, or parents. According to the other madhabs a wife can give her husband Zakat if he is eligible.

According to the Hanafi and Hanbali madhab, grandparents are not eligible to receive Zakat. However, in the Shafi and Maliki madhab, it is permissible to give Zakat to grandparents, provided their maintenance is not your responsibility. Other relatives may receive Zakat if they are eligible.

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Allāhumma ṣalli ʿalā sayyidinā Muḥammadin, al-fātiḥi limā ughliqa, wa-l-khātimi limā sabaqa, nāṣiri l-ḥaqqi bi-l-ḥaqqi, wa-l-hādī ilā ṣirāṭika l-mustaqīmi, wa-ʿalā ālihi ḥaqqa qadrihi wa-miqdārihi l-ʿaẓīm. O Allah, send prayers upon our master Muhammadﷺ, the opener of what had been closed, and the seal of what had come before, the defender of the Truth by the Truth, and the guide to Your straight path, and upon his family, according to the full measure of his rank and his immense stature.     •     Allāhumma ṣalli ʿalā sayyidinā Muḥammadin, al-fātiḥi limā ughliqa, wa-l-khātimi limā sabaqa, nāṣiri l-ḥaqqi bi-l-ḥaqqi, wa-l-hādī ilā ṣirāṭika l-mustaqīmi, wa-ʿalā ālihi ḥaqqa qadrihi wa-miqdārihi l-ʿaẓīm. O Allah, send prayers upon our master Muhammadﷺ, the opener of what had been closed, and the seal of what had come before, the defender of the Truth by the Truth, and the guide to Your straight path, and upon his family, according to the full measure of his rank and his immense stature.     •     Allāhumma ṣalli ʿalā sayyidinā Muḥammadin, al-fātiḥi limā ughliqa, wa-l-khātimi limā sabaqa, nāṣiri l-ḥaqqi bi-l-ḥaqqi, wa-l-hādī ilā ṣirāṭika l-mustaqīmi, wa-ʿalā ālihi ḥaqqa qadrihi wa-miqdārihi l-ʿaẓīm. O Allah, send prayers upon our master Muhammadﷺ, the opener of what had been closed, and the seal of what had come before, the defender of the Truth by the Truth, and the guide to Your straight path, and upon his family, according to the full measure of his rank and his immense stature. Allāhumma ṣalli ʿalā sayyidinā Muḥammadin, al-fātiḥi limā ughliqa, wa-l-khātimi limā sabaqa, nāṣiri l-ḥaqqi bi-l-ḥaqqi, wa-l-hādī ilā ṣirāṭika l-mustaqīmi, wa-ʿalā ālihi ḥaqqa qadrihi wa-miqdārihi l-ʿaẓīm. O Allah, send prayers upon our master Muhammadﷺ, the opener of what had been closed, and the seal of what had come before, the defender of the Truth by the Truth, and the guide to Your straight path, and upon his family, according to the full measure of his rank and his immense stature.     •     Allāhumma ṣalli ʿalā sayyidinā Muḥammadin, al-fātiḥi limā ughliqa, wa-l-khātimi limā sabaqa, nāṣiri l-ḥaqqi bi-l-ḥaqqi, wa-l-hādī ilā ṣirāṭika l-mustaqīmi, wa-ʿalā ālihi ḥaqqa qadrihi wa-miqdārihi l-ʿaẓīm. O Allah, send prayers upon our master Muhammadﷺ, the opener of what had been closed, and the seal of what had come before, the defender of the Truth by the Truth, and the guide to Your straight path, and upon his family, according to the full measure of his rank and his immense stature.     •     Allāhumma ṣalli ʿalā sayyidinā Muḥammadin, al-fātiḥi limā ughliqa, wa-l-khātimi limā sabaqa, nāṣiri l-ḥaqqi bi-l-ḥaqqi, wa-l-hādī ilā ṣirāṭika l-mustaqīmi, wa-ʿalā ālihi ḥaqqa qadrihi wa-miqdārihi l-ʿaẓīm. O Allah, send prayers upon our master Muhammadﷺ, the opener of what had been closed, and the seal of what had come before, the defender of the Truth by the Truth, and the guide to Your straight path, and upon his family, according to the full measure of his rank and his immense stature. Allāhumma ṣalli ʿalā sayyidinā Muḥammadin, al-fātiḥi limā ughliqa, wa-l-khātimi limā sabaqa, nāṣiri l-ḥaqqi bi-l-ḥaqqi, wa-l-hādī ilā ṣirāṭika l-mustaqīmi, wa-ʿalā ālihi ḥaqqa qadrihi wa-miqdārihi l-ʿaẓīm. O Allah, send prayers upon our master Muhammadﷺ, the opener of what had been closed, and the seal of what had come before, the defender of the Truth by the Truth, and the guide to Your straight path, and upon his family, according to the full measure of his rank and his immense stature.     •     Allāhumma ṣalli ʿalā sayyidinā Muḥammadin, al-fātiḥi limā ughliqa, wa-l-khātimi limā sabaqa, nāṣiri l-ḥaqqi bi-l-ḥaqqi, wa-l-hādī ilā ṣirāṭika l-mustaqīmi, wa-ʿalā ālihi ḥaqqa qadrihi wa-miqdārihi l-ʿaẓīm. O Allah, send prayers upon our master Muhammadﷺ, the opener of what had been closed, and the seal of what had come before, the defender of the Truth by the Truth, and the guide to Your straight path, and upon his family, according to the full measure of his rank and his immense stature.     •     Allāhumma ṣalli ʿalā sayyidinā Muḥammadin, al-fātiḥi limā ughliqa, wa-l-khātimi limā sabaqa, nāṣiri l-ḥaqqi bi-l-ḥaqqi, wa-l-hādī ilā ṣirāṭika l-mustaqīmi, wa-ʿalā ālihi ḥaqqa qadrihi wa-miqdārihi l-ʿaẓīm. O Allah, send prayers upon our master Muhammadﷺ, the opener of what had been closed, and the seal of what had come before, the defender of the Truth by the Truth, and the guide to Your straight path, and upon his family, according to the full measure of his rank and his immense stature.
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