What is Zakat and Its Meaning in Islam?
Zakat is an essential part of the islamic faith, as it is one of the five pillars of faith. It is an obligatory charity, whereby Muslims who can afford to do so, must pay 2.5% of their wealth to charity.
The word "Zakat" originates from the root word in Arabic, "zakaa," which signifies purification and growth. This reflects its dual purpose: purifying wealth and fostering spiritual growth in the giver. The giving of Zakat is reflective of Islam’s focus on social justice and the need to uplift and support those in need.
In many ways, giving Zakat is a form of redistribution of wealth, whereby those who are more wealthy, are consistently supporting those in need. Giving Zakat is also a way for Muslims to express thanks to Allah for their wealth and stability, while also remembering that all provision comes from Allah (swt) Himself.
What is the Purpose of Zakat?
Zakat is not just about giving a charitable donation of a specific amount. Zakat is about connecting our ummah, reminding us of our faith, and ensuring that nobody suffers. Zakat is a way to ensure that people everywhere have the opportunity to thrive and live a life of freedom, dignity and empowerment.
By commanding Zakat, Islam establishes a safety net for the vulnerable and promotes social justice. It redistributes wealth, meaning that those most vulnerable always have the support they need to both survive and thrive. It also helps promote humility and equality.
What is the Nisab of Zakat?
Zakat does not need to be paid by everybody - only those who own wealth that exceeds the Nisab, which is the minimum threshold of wealth.
It is a pre-set value measured by the value of 87.48 grams of gold or 612.36 grams of silver. It is important to remember that the price of gold and silver varies over time, and so fresh Zakat calculations must be done each time to ensure the correct payment is made.
In order to determine whether you exceed the Nisab, and how much Zakat is to be paid, one must value their savings, investments, gold, silver, and business profits. Necessities such as a primary residence, clothing, and essential tools are exempt. By determining if your wealth exceeds this threshold, you can fulfill your Zakat obligation accurately.
Ensure your Zakat calculation is correct. Use our easy-to-navigate Zakat calculator and give with confidence.
What is the Zakat Percentage?
The standard percentage for Zakat on monetary assets and savings is 2.5%. This applies to cash, gold, silver, and other savings held for a lunar year. For agricultural produce, livestock, and business assets, specific rates apply, reflecting the diversity of wealth in Islamic law.
A fixed percentage for Zakat is what helps make this fair, not putting a burden on those who would struggle to fulfil the duty. The small, fixed percentage ultimately means that those who have more wealth, pay a larger amount of money for their Zakat, although the percentage is the same. It means that those with less wealth pay less, enabling them to support those in need in a way that is sustainable and uplifting for all.
What is Zakat Paid On?
Zakat is due on various types of wealth, including:
- Savings: Cash in bank accounts or at home.
- Gold and Silver: Jewellery or bullion held as an investment.
- Investments: Stocks, shares, and other profitable assets.
- Business Profits: Net income after expenses.
- Rental Income: Profits from properties.
Exemptions include basic living necessities such as your home, car, and personal items. By carefully assessing your assets, you can ensure your Zakat obligation is fulfilled accurately.
Let us help you calculate your Zakat. Use our platform to ensure your contributions make a lasting difference.
How to Calculate and Pay Zakat
Calculating Zakat involves assessing your total eligible assets, subtracting any debts or liabilities, and applying the 2.5% rate to the remaining amount. For agricultural, livestock, or other assets, consult specific guidelines to ensure accuracy.
Steps to calculate your Zakat:
1 Look at those assets that Zakat must be paid on, including savings, gold, and any investments.
2 Minus any debt or major expenses.
3 Check if your net wealth exceeds the Nisab threshold.
4 Multiply the net amount by 2.5% to determine your Zakat obligation.
Paying Zakat is equally important. Choose trusted platforms like ours to ensure your Zakat reaches the most deserving recipients. Our Zakat calculator simplifies this process, allowing you to fulfill your obligation with confidence. Calculate and Donate Now.
The Impact of Zakat: Why It Matters
Zakat has the power to change and empower communities by focusing on the root causes of poverty and addressing these.
Zakat can fulfil short term needs, and also have a long-term impact, helping people build lives of dignity, stability and security.
Zakat can be used for a range of initiatives, including providing education, quality healthcare,orphan care, livelihood opportunities and food security, creating a positive impact that will last for generations.
At Al Mustafa Welfare Trust, we use Zakat to fund life-changing projects, including:
- Providing clean water
- Distributing food to families in need
- Supporting orphans
- Helping Hifz students complete their Quranic education
- Funding livelihood programs to create financial stability.
Your Zakat has the power to transform lives. Let your giving make a real impact—donate today and be part of something incredible.
Allow your Zakat to do something phenomenal. Fulfill your Zakat obligation and contribute to building a better world.