Zakat is the third pillar of Islam. It signifies the amount of wealth a Muslim pays to the poor and less privileged people. Zakat is a compulsory act of worship and signifies the responsibility and duty the richer have towards those in need. Literal meaning of the word Zakat is ‘to cleanse.’ Muslims believe that paying Zakat purifies their wealth and pleases Allah SWT.
Your Zakat can transform lives and help those in need.
This year’s Zakat Nisab
The Ministry of Poverty Alleviation and Social Safety has fixed the Nisab for Zakat deduction for the ongoing year.
According to a notification issued by the ministry, Zakat will be deducted from saving accounts, profit and loss sharing accounts and other similar accounts having a minimum balance of Rs103,159 or above, on the first of Ramadan.
The Nisab was fixed at Rs88,927 in the previous year.
What are the benefits of Zakat?
Zakat brings one closer to Allah SWT. As an obligatory act of charity, it ensures that the poor and needy are protected from deprivation, hunger and financial insecurity. Zakat not only benefits those in need but also brings countless blessings to the ones who pay it. It cleanses our wealth, wipes away minor sins and purifies heart and soul from stinginess.
“…but My mercy encompasses all things. I shall ordain My mercy for those who are conscious of God and pay the prescribed alms; who believe in Our Revelations.”
“My mercy encompasses all things, but I will specify it for the righteous who give Zakat” – (Quran 7:156)
Who are the recipients of Zakat?
“Alms (here it means Zakat) are meant only for the poor, the needy, those who administer them, those whose hearts need winning over, to free slaves and help those in debt, for God’s cause, and for travellers in need. This is ordained by God; God is all knowing and wise.” (Quran 9:60)
Here are the eight categories of recipients of Zakat:
The poor (Fuqara)
The needy (Masakeen)
Collectors of Zakat (Al-‘Aamileen)
Friends of the Islamic community and/or convert Muslims (Al-Mu’allafatu-Al- Quloob)
The cause of (freeing) the slaves (Ar-Riqaab)
Debtors (Gharimeen)
The way of Allah SWT (fi Sabilillah)
Wayfarer (Ibn-us-sabil)
Who should pay Zakat?
Zakat must be paid by the one who is:
Muslim
Major (Baligh)
Sane
Owner of wealth, above the level of Nisab (Sahib-un-nisaab)
If all the above apply, you have to pay 2.5% Zakat on all of your savings and other applicable assets.
