Zakat

Overview

Zakat is one of the Five Pillars and is considered a religious obligation for all eligible Muslims worldwide. It is a form of almsgiving to the Muslim community that is treated in Islam as a religious obligation or tax, which, by Quranic ranking, is next after prayer (Salat) in importance.

Etymology and Definitions

The word Zakat means both 'purification' and 'growth'. Our possessions are purified by setting aside a proportion for those in need, and, like the pruning of plants, this cutting back balances and encourages new growth.

Zakat in the Quran

Zakat is mentioned in the Quran multiple times and is often mentioned in the same breath as Salat (prayer), highlighting its significance. The Quran discusses Zakat in more than 30 different verses, primarily in the Medinan suras.

Calculation of Zakat

The amount of Zakat to be paid by an individual depends on the amount and type of wealth owned. The Quran does not provide specific guidelines on which types of wealth are taxable under the Zakat, nor does it specify percentages to be given. Instead, the amount of Zakat paid on capital assets (e.g. money) is customarily 2.5% (1/40).

Zakat Eligible Individuals

According to the Quran, there are eight categories of people (asnaf) who qualify to benefit from Zakat funds.

Zakat and Social Justice

Zakat is viewed as a means to foster social justice. It is a form of wealth redistribution, providing a safety net for the poor and the needy.

Zakat vs. Sadaqah

Zakat and Sadaqah are forms of charity given by Muslims. The two are different in their own respects. Zakat is obligatory and must be given annually, while Sadaqah is voluntary and can be given at any time.

Zakat in Different Countries

The practice of Zakat varies between different countries. Some countries have state-run Zakat contribution programs, while in others it is given on an individual basis.