It is very important to calculate your Zakat correctly, and to ensure you are paying enough Zakat each year. As Zakat is a percentage of your wealth, the amount of Zakat you need to pay each year will vary depending on your income, savings and expenditure. This is often affected by outside forces like inflation, recessions and political movements. One of the most important things to do is to calculate zakat on salary if you are working, and this can sometimes be a bit confusing.
Here we tell you how to calculate Zakat on Salary
The Importance of giving and calculating your Zakat
Zakat is one of the pillars of Islam, and is obligatory on all sane, adult Muslims. It requires you to give 2.5% of your wealth to those in need. Al Mustafa Welfare Trust is one of many organisations that can facilitate you in fulfilling this beautiful obligation. Your Zakat can truly transform communities and save lives, and our projects are a fantastic way of making a difference with your Zakat.
To be eligible to receive zakat, the recipient must be poor and/or needy. The Holy Qur’an (9:60) specifies eight categories for the distribution of Zakat:
- The poor
- The needy
- Zakat collectors
- Those who have converted to Islam and are in need
- Those in slavery
- Those in debt
- In the way of Allah
- The traveller
How to Calculate Zakat
First of all you’ll need to work out whether you’re obligated to pay Zakat by looking at whether what you own meets the Nisab. This is the minimum threshold of wealth that one must own before they are obligated to pay Zakat.
The value of the Nisab in prophetic tradition is 87.48 grams of pure gold or 612.36 grams of pure silver so the monetary value of the Nisab will vary according to current prices. The monetary value of the Nisab varies year to year, so it is important to ensure you have the right figure.
Due to the significant difference in the cost of gold and silver, the Nisab for silver is much lower than that of gold. Although either of the two values can be used, many scholars advise that we apply the Nisab of silver when calculating our Zakat so that more people are eligible to pay, thus resulting in more needy people being supported.
Zakat should be calculated and paid on any surplus wealth that you have owned for at least one lunar year.
- Gold, silver, precious metal, including ornaments/jewellery containing gold/silver
- Stocks and shares
- Money you have lent to others
- Cash in bank accounts, committees or at home
- Any business stock
- Property you own for investment purposes
Calculate Zakat on Salary
To be eligible for zakat, you have to own wealth above the nisab value for one full year, and this means that if you receive a salary but all of it is spent on your daily living, you have no wealth left on which to pay Zakat. This means you do not need to be Zakat. One full year starts from the date of possession of the nisab which is said to be the minimum wealth on which zakat has to be paid.
It is especially important to be mindful when calculating your Zakat, if your salary is inconsistent, and you do not receive the same amount each month. It is important to be aware how much you are spending and are able to save over the year, as this will determine exactly how much Zakat you must pay.
The easiest way to pay zakat online is to first calculate your zakat amount using our simple and easy Zakat Calculator whether you are in the UK or abroad. Our Zakat Calculator takes away the stress and hard work, and allows you find out the monetary value of each type of wealth and then work out 2.5% of the total sum. We also show you what incredible things your Zakat can be used for, and so the brilliant impact you could have.
Our simple to use and effective Zakat calculator will help take the stress out of working out your Zakat amount, so you can focus on fulfilling your duty and reaping rewards. As long as you have details of all the assets you own to hand, you can quickly find out how much you need to give.
There are 4 simple steps to working out your Zakat:
- Work out what you own
- Then take off what you owe (any debts)
- Check that the balance is above the Nisab threshold.
- Work out 2.5% of that amount, which is the amount of Zakat you need to pay across the year.
Our Zakat calculator makes this super easy, click here to find out more, and ensure that your Zakat reaches those most in need around the world.