Zakat
Zakat is the third pillar of Islam; the Quran mentions it alongside prayer again and again. It purifies wealth and gives the needy their right.
Who must pay
A sane adult Muslim who owns wealth at or above the nisab, beyond basic needs and debts, for a full lunar year.
| Nisab | Amount |
|---|---|
| Gold | 87.48 g (7.5 tola) |
| Silver | 612.36 g (52.5 tola) |
| Cash and trade goods | The value of the silver nisab (Hanafi view, as it benefits the poor more) |
The rate is 2.5% (one fortieth) of zakatable wealth: cash, bank balances, gold and silver, trade goods, shares, money owed to you. There is no zakat on one’s home, personal car, furniture and everyday belongings.
The eight kinds of people who may receive zakat
- The poor (who have nothing)
- The needy (who have less than they need)
- Those employed to collect it
- Those whose hearts are to be won
- Freeing slaves
- Those in debt
- In the way of Allah
- The stranded traveller
Zakat may not be given to one’s parents, grandparents, children, grandchildren or spouse; giving it to poor brothers, sisters, uncles and other relatives is best — it earns the reward of both charity and kinship.
Zakat al-fitr
Whoever owns the nisab at dawn on Eid al-Fitr must pay it for himself and his young children, preferably before the Eid prayer.