What is Zakat?

Zakat is the third pillar of Islam, and the word means ‘that which purifies’. Giving zakat is considered a means of purifying one’s wealth and soul. Paying zakat is an obligatory act upon all Muslims who are sane and have the financial means (above the nisab threshold) to pay every lunar year. Nisab is the amount which savings or capital must exceed in order for the Muslim to be obliged to give zakat. The amount of zakat to be paid by an individual depends on the amount of wealth and the type of assets the individual possesses, so a 2.5% zakat is paid for capital assets such as cash, gold and silver. However, if their wealth amounts to less than the threshold figure (nisab) then no zakat is payable.

The Qur’an mentions eight categories in how the Zakat money can be spent. The Zakat money cannot be used for anything else apart for:

1. The poor (Faqir/Fuqara) - Those without any means of livelihood and material possessions.
2. The needy (Masakeen) - Those without sufficient means of livelihood to meet their basic necessities.
3. The administrators of Zakat (Aamil) - Those appointed to manage and administer Zakat.
4. The sympathisers (Muallaf) - Those who are inclined to enter or have already converted to Islam.
5. To free slaves (Riqab) - Zakat can also be used to free slaves or captives.
6. Those who are in debt (Gharimin) - Zakat can be used to pay off the debts of a person who has borrowed to pay for basic necessities so that he/she can lead a normal life. Zakat can also be distributed to those in financial difficulties e.g. bankruptcy due to the loss of employment and heavy debt.
7. For the cause of Allah (Fisabillillah) - Zakat can be used to finance any form of struggle or work for the love of Allah. The following examples fall under this category, e.g. Da'wah; building & developing society's infrastructure; defending Muslims, who are being oppressed; assisting poor travellers and sponsoring a student's educational expenses.
8. Those who are stranded during a journey (Ibnus Sabil) – Zakat can also be used to help a traveller facing difficulties in continuing his journey due to reasons such as loss of money or the breakdown of his vehicles, the repair of which he cannot afford.

Allah says in the Quran: "And there are those who hoard gold and silver and do not spend it in the way of Allah, announce to them a most grievous penalty (when) on the Day of Judgment heat will be produced out of that wealth in the fire of Hell. Then with it they will be branded on their forehead and their flanks and backs. (It will be said to them) This is the treasure which you hoarded for yourselves, taste then the treasure that you have been hoarding." (Al-Quran 9:34-35)

1. Business
2. Rental Income
3. Personal Income
4. Savings
5. Gold and Silver
6. Shares
7. Livestock
8. Agriculture produce (crop)
9. Produce of mines
10. Cattle
11. And more..

1. Zakat is payable when a Muslim is in possession of wealth above the prescribed limit called “Nisab” that is 2.5 % of this possession.
2. They must have possessed this money or the wealth above the prescribed limit for one whole year.
3. The Zakat must be paid to those Muslims who are in need and deserve it, as laid down in the Quran and as explained by the Prophet Mohammad (peace and blessings of Allah he upon him).