ZAKAT
Pillar of Islam
Zakat In The Qur'an
وَاَقِيۡمُوا الصَّلٰوةَ وَاٰتُوا الزَّکٰوةَ ؕ وَمَا تُقَدِّمُوۡا لِاَنۡفُسِكُمۡ مِّنۡ خَيۡرٍ تَجِدُوۡهُ
عِنۡدَ اللهِ ؕ اِنَّ اللهَ بِمَا تَعۡمَلُوۡنَ بَصِيۡرٌ.
Establish prayer and pay Zakat. Whatever good you send forth for yourselves, you will certainly find its reward with Allah. Surely Allah is All-Seeing of what you do. [Qur’an 2:110]
What Is Zakat?
Zakat is one of the Five Pillars of Islam and a compulsory religious obligation that must be performed once a year by every eligible Muslim.
Zakat is an act of worship and a means of purifying one’s personal wealth. It is not just a financial obligation, but a deeply spiritual act that strengthens the relationship between a Muslim and Allah.
When Should Zakat Be Paid?
Muslims are required to give a fixed portion of 2.5% of their annual savings and wealth above a certain threshold called nisab to those in need.
It is paid when two conditions are met:
The Nisab: the minimum amount of wealth a Muslim must possess before they become eligible to pay Zakat.
The Hawl: A lunar Year (354 Days/Islamic Year) has passed on it after reaching the Nisaab .
The Nisab was set by the Prophet Muhammad (s.a.w.) at a rate equivalent to: 87.48 grams of gold and 612.36 grams of silver.
In today’s day and age we do not use silver or gold as monetary exchange so when calculating your Zakat, you need to find out the equivalent of the rates the Prophet (peace be upon him) set but in your local currency.
HOW MUCH DO I PAY?
Mercy to Humanity - Zakat Information
Mercy to Humanity uses the value of Gold as the standard for the Nisaab, so the minimum current amount is: £4,527.96 before Zakat is due to be paid.
For example, if a year had passed on this amount you would pay 2.5% of this which would be £94.18.
If you had £5,000 in wealth/assets saved and a year had passed on it then you would pay £125.00.
Those things classed as your wealth and assets which are Zakat applicable:
Cash – In the bank or at home and that which is saved for anything specific.
Gold and Silver – The value of it in your local currency according to the Nisaab.
Shares – The value of the shares you own at their market price.
Money owed to you – If it is expected to be repaid.
Your Business – The balance sheet value of the stock you possess.
Your Properties – Any rental income that’s been saved in the year. The equity value of your investment property portfolio is not included as part of your assets in the Zakat calculation.