Zakat is the third pillar of Islam and 1 of the 5 fundamental beliefs and practices of the Islamic faith. Zakat is a form of charity which is obligatory on every sane, healthy, adult Muslim, providing their wealth exceeds a certain minimum value known as nisab.

Nisab is the minimum amount of wealth a Muslim must posses before being obliged to pay Zakat. This wealth must be held for a full Islamic lunar year (also referred to as “Hawl”).

 

The Nisab value is calculated based the weight of Gold & Silver.

 

Silver – 612.36 grams
Gold – 87.48 grams

 

Although there are differing views on which Nisab threshold value should be used, you can calculate your Zakat on either the gold or silver values.

 

Most commonly the silver nisab value is used to calculate zakat. This allows for the distribution of more wealth for the benefit of those in need.

Zakat is obligatory on every sane adult Muslim whose earnings are above the nisab value. This wealth must be held for a full Islamic lunar year (also referred to as “Hawl”).

The Qurān outlines the eight categories of whom are eligible to receive Zakat, they are;

 

• The poor
• The needy
• Zakat collectors & distributers
• Those who have converted to Islam and are in need
• Those in captivity
• Those in unmanageable debt
• In the way of Allah
• The wayfarer

Zakat is based on income and the value of possessions. Your Zakat contribution should equal 2.5 percent of your total earned wealth (minus any owed debts).

 

You should not include any necessities in your calculation such as main home, car, clothing etc.

 

You can use our simple zakat calculator to work out how much Zakat you need to pay.

Zakat is paid once every Islamic lunar year, providing your earnings have surpassed the nisab threshold.

 

Zakat is only calculated on wealth held at the end of the lunar year.

 

Many people choose to donate Zakat in Ramadan due to greater rewards.

Zakat should be paid in a lump sum at the end of the lunar year and not delayed further, however if this causes difficulty then zakat can be paid in advance instalments.

 

You can set up regular Zakat donations via the “Donate” tab on our website.

Zakat Al Fitr (also referred to as Fitrana) is a separate compulsory donation made at the end of Ramadan prior to the Eid Al Fitr prayer. Zakat and Zakat Al-Fitr are often confused to be the same.

 

The Zakat Al Fitr amount for 2023 is £5.00 per person.