Zakat is one of the most important obligations in Islam and one of the Five Pillars of the faith. The word "Zakat" (زكاة) comes from the Arabic root meaning "purification," "growth," and "blessing." By giving Zakat, a Muslim purifies their wealth, fulfils a divine command, and contributes to the welfare of the broader community.
"Take from their wealth a charity by which you purify them and cause them to increase, and invoke [Allah's blessings] upon them. Indeed, your invocations are reassurance for them. And Allah is Hearing and Knowing." — Quran 9:103
The Five Pillars of Islam
The Five Pillars of Islam are the foundation of Muslim life. They are:
- Shahada — Declaration of faith
- Salah — Five daily prayers
- Zakat — Obligatory charity (2.5% of wealth)
- Sawm — Fasting during Ramadan
- Hajj — Pilgrimage to Mecca
Zakat is the third pillar and is mentioned alongside Salah (prayer) over 30 times in the Quran, underscoring its supreme importance in Islam.
Who Must Pay Zakat?
Zakat is obligatory on every Muslim who meets ALL of the following conditions:
- Is a Muslim (non-Muslims are not required to pay Zakat)
- Is sane and adult (reached the age of puberty)
- Owns wealth that exceeds the Nisab threshold
- Has owned that wealth for a full lunar year (Hawl)
- The wealth is above basic needs and free from debt
What is the Nisab?
The Nisab is the minimum amount of wealth a Muslim must have before Zakat becomes obligatory. It is set at the equivalent of either:
- 87.48 grams of gold, or
- 612.36 grams of silver
Most scholars recommend using the silver Nisab as it is lower and therefore more inclusive, ensuring more people contribute to Zakat. You can use our free Zakat calculator to check whether you meet the Nisab threshold at current gold and silver prices.
What is Hawl (Lunar Year)?
Hawl refers to the Islamic lunar year, which is approximately 354 days. Zakat is only obligatory if your wealth has remained above the Nisab for one complete Hawl. You do not need to wait a full year to pay — the Hawl simply means your wealth must have been above Nisab continuously throughout the year.
How Much is Zakat?
The standard Zakat rate is 2.5% of your total zakatable wealth. This applies to most common asset types: cash, gold, silver, stocks, and business inventory. Some asset types, like agricultural produce, have different rates.
For example: if your net zakatable wealth is Rs 1,000,000, your Zakat would be Rs 25,000.
Which Assets are Zakatable?
The following assets are subject to Zakat:
- Cash in hand and in bank accounts (savings, current, fixed deposits)
- Gold and silver — whether jewellery, coins, or bars
- Business inventory and goods held for trade
- Stocks, shares, and investments
- Money owed to you that is likely to be recovered
- Agricultural produce (different rate applies)
The following are NOT zakatable:
- Your home (personal residence)
- Personal vehicle
- Household furniture and appliances
- Personal clothing and jewellery used daily (disputed — silver standard excludes it)
- Business equipment used for production (not for trade)
Who Receives Zakat?
The Quran specifies eight categories of people who are eligible to receive Zakat (Quran 9:60):
- Al-Fuqara — The poor
- Al-Masakin — The needy
- Al-Amilina Alayha — Zakat administrators
- Al-Muallafatu Qulubuhum — New Muslims and friends of the Muslim community
- Fir-Riqab — Those in bondage (freeing slaves)
- Al-Gharimin — Those in debt who cannot repay
- Fi Sabilillah — In the cause of Allah
- Ibn-us-Sabil — Stranded travellers
Calculate Your Zakat Now
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