What Does Zakat Mean in Islam? Requirements, Importance & More

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Learn who is required to pay zakat & who receives it
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Zakat (one of the five pillars of Islam) refers to the requirement that each Muslim individual with a certain amount of personal wealth must donate 2.5% of that wealth to those in need each lunar year. In this article, we’ll teach you everything you need to know about zakat, including what it is, how it works, who receives it, and when it’s given. Plus, learn if giving zakat is required, how to calculate how much zakat you owe, and the origins of the practice.

What is the meaning of Zakat in Islam?

Zakat is the third of the five pillars of Islam. It requires that all Muslims who earn above a certain threshold (or nisab) must donate 2.5% of their wealth to people in need every lunar year. In most Muslim beliefs and countries, giving zakat is mandatory and is considered a form of worship of Allah.

Section 1 of 8:

What is zakat in Islam?

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    Zakat is the third pillar of Islam and refers to the obligation of a Muslim individual to donate a certain portion (2.5%) of their wealth to those in need each year. In most countries, zakat is mandatory for all Muslims who earn above a certain threshold (based on the current value of gold or silver) in their area. It is considered a form of worship. [1]
    • Giving zakat is a way of cleansing your money and possessions from excessive desire or greed.
    • Because zakat is required in Islam, it is not considered to be charity or a tax.
    • Zakat is meant to provide direct assistance to the needy and cannot be used for infrastructure or administrative costs.
    • Zakat is also sometimes called zakat al-mal; these terms refer to the same thing and are used interchangeably.
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Section 2 of 8:

How Zakat Works

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    Islam is a complete code of life and has its own economic principles. Zakat is one of the basic principles of the Islamic economy and is based on social welfare and fair distribution of wealth. Anyone who has more personal wealth than the nisab, or threshold, is required to pay 2.5% of their total wealth. [2]
    • The nisab is based on the value of 87.48 grams of gold or 612.36 grams of silver, so the exact amount varies from year to year and even month to month.
    • Individuals become eligible to pay zakat once they hit the threshold at any point during a lunar year. There is no set payment date.
    • Paying zakat requires that individuals take regular inventory of their wealth and possessions, either weekly or monthly.
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    Individuals required to give zakat may choose who they donate to. This can be done directly by the individual (by donating directly to an organization, for example), or by appointing an agent to distribute on their behalf. Another option is to give the zakat to a Muslim authority who will then distribute the money to eligible recipients. [3]
    • While zakat is often given to organizations, it can be given directly to eligible individuals who are in need. These individuals can not be members of the donor's immediate family.
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    This means that the entire donation is supposed to go directly toward helping those in need. The money cannot be kept by a charity for administration costs or any other reason. Many organizations have specific forms designated for zakat to separate these donations from other charitable donations. Zakat aid must be used within one lunar year of when it was given. [4]
    • Despite this, there is some controversy around zakat and whether it’s distributed justly. Some suspect that organizations might be keeping some of the money, as zakat doesn’t lift people from poverty as it should.
    • Some believe that alms collectors (like charities) can also receive zakat; some organizations use this as a way to cover administrative costs related to zakat aid.
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Section 3 of 8:

Who receives zakat?

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    According to the Quran’s Surah Al-Tawba, there are 8 categories of people who qualify to receive zakat. Traditionally, Islamic scholars have interpreted these 8 categories to be the following: [5]
    • Al-Fuqarā': the poor
    • Al-Āmilīyn 'Alihā: the needy
    • Al-Mu'allafatu Qulūbuhum: those sympathetic to or expected to convert to Islam , recent converts to Islam, and potential allies in the cause of Islam
    • Fir-Riqāb: those who are enslaved, trafficked, or otherwise oppressed; slaves of Muslims who have been or are intended to be freed by means of a kitabah contract (a written contract between a slave and their master that outlines the terms for the slave’s freedom)
    • Al-Ghārimīn: those in heavy debt from attempting to satisfy their basic needs or in pursuit of a worthy goal
    • Fī Sabīlillāh: those fighting for a religious cause/to protect the Muslim community
    • Ibnu Al-Sabīl: Wayfarers, stranded travelers
    • Note that zakat should not be given to one’s own parents, grandparents, children, grandchildren, spouses, or the descendants of Muhammad. It also should not be given to non-Muslims, unless they’re expected to convert.
Section 4 of 8:

Is giving zakat required?

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    Because zakat is one of the five pillars of Islam, most Islamic belief systems and countries with large Muslim populations believe it is a requirement and treat it as such. [6] However, because there is some debate amongst religious scholars about whether zakat actually helps those in need, some other countries allow individuals to choose whether they pay zakat or not.
    • In some countries (like Libya, Malaysia, Pakistan, Saudi Arabia, Sudan, and Yemen) where zakat is compulsory, those who fail to pay are treated like tax evaders and may face legal repercussions.
    • The requirement of giving zakat has led to many disputes throughout the history of Islam, most notably during the Ridda wars.
    • Some Islamic scholars and development workers have criticized zakat, arguing that it has failed to lift people out of poverty and suggesting that the funds are being wasted and mismanaged. It may be okay not to pay zakat if the collector is unjust or if the money won’t be distributed fairly.
    • While there won’t always be punishments for not paying zakat, many Muslims believe failing to pay will lead to serious consequences in the next life. It may also lead to a lack of blessings (barakah) in your life.
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    Shaykh Mekaeel is an Imam at the Islamic Community of Salinas in Salinas, California. He is the founder of the Voyagers of Knowledge YouTube channel, which creates Islamic educational content. He attended the Islamic University of Madinah and earned a degree from the school of Da'wah and Usuluddeen.
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    Allah tells us to help the less fortunate. Whether we agree with that or not, it's better for us. It's better for society as a whole. We need to recognize the favor and the bounty of Allah upon us, and we need to try our best to get closer to Him.

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Section 5 of 8:

When is zakat given?

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    Not everyone pays zakat at the same time, as individuals become eligible to pay once they hit the nisab, or wealth threshold. It doesn’t matter when it’s paid, as long as it is paid within the lunar year. [7]
    • While there is no set payment date, many pay it out at the end of the year once calculations on any leftover wealth are made. Others prefer to pay during Ramadan or the Hajj pilgrimage .
    • Zakat Al-Fitr is a type of zakat specifically given during Ramadan before the Eid prayer, which must be given to provide food for the poor. [8] This is different from regular zakat but it is still usually considered obligatory for individuals who have more food than required to meet their needs.
Section 6 of 8:

How to Calculate Zakat

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    The first step to calculating the amount of zakat you owe is to make sure you meet the required threshold, or nisab. The nisab is based on the value of 87.48 grams of gold or 612.36 grams of silver. Look online to see the current value for each during any given month, as the value often changes. [9]
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    Take inventory of your possessions and wealth. Zakat is based on a number of assets, including cash in bank accounts and at home, savings for an intended purpose, stocks and shares, outstanding money owed, and more. Consult with a scholar to find out exactly what you should consider when calculating your personal wealth. Then, add the value of these assets together and see if the total is above the current nisab. [10]
    • If you have trouble calculating on your own, try inputting your wealth into a zakat calculator online.
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    In most cases, Muslims who meet the nisab are required to pay 2.5% or 1/40 of their wealth in zakat. When you’ve determined your total wealth, multiply that number by 2.5% (or 1/40) to determine the amount you’re required to give. [11]
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Section 7 of 8:

Origins of Zakat

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    Charity is referenced in many verses in the Quran, and some of these are related to zakat. [12] The word zakat (with its current meaning) is found in many suras, including 7:156, 9:60, 19:31, 19:55, and 27:3. It’s also found in early Medinan suras and is described as obligatory for all Muslims.
    • Verse 2:177 of the Quran states, “Righteousness is not in turning your faces towards the east or the west. Rather, the righteous are those who believe in Allah, the Last Day, the angels, the Books, and the prophets; who give charity out of their cherished wealth to relatives, orphans, the poor, needy travelers, beggars, and for freeing captives; who establish prayer, pay alms-tax, and keep the pledges they make; and who are patient in times of suffering, adversity, and in the heat of battle. It is they who are true in faith, and it is they who are mindful of Allah. [13]
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    Zakat was first collected on the first day of Muharram. The caliph Abu Bakr, believed by Sunni Muslims to be Muhammad’s successor, was later the first to institute a required zakat system. He established the principle that zakat must be paid to a legitimate representative of Muhammad’s authority. [14]
    • The second and third caliphs (Umar ibn al-Khattab and Uthman ibn Affan) continued Abu Bakr’s codification of zakat.
    • Some believe the practice may have roots in Judaism (due to the Hebrew and Aramaic word zakut , meaning “pure” or “clear”), though others do not believe that the Qur’anic verses on zakat are related to Judaism.
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Section 8 of 8:

Related Terms

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    Nisab refers to the minimum amount of wealth and possessions a Muslim must own in order to be required to give zakat. If an individual’s personal wealth is below the nisab, they do not owe zakat during that lunar year. [15]
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    Sadaqah is a form of voluntary giving within Islam. Sadaqah can be given at any time of the year to help those in need. Unlike zakat, sadaqah can be given on behalf of another person. [16]
    • There are two forms of sadaqah. Sadaqah jariya refers to ongoing charity. Sadaqah waqf refers to assets like endowments that are donated or purchased to be held in perpetual trust to provide ongoing charity.
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    Fitrana, or Zakat Al-Fitr, is a donation given before the Eid prayer during Ramadan. It is often given in the form of food and must be given by every self-supporting Muslim who has more food than required to meet their needs. [17]
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    The five pillars of Islam refer to fundamental practices of the religion and are considered to be obligatory acts of worship for all Muslims. The five pillars include shahada (the Muslim creed), salat (prayer), zakat (almsgiving), sawm (fasting), and hajj (pilgrimage). [18]
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    Shahada is the first pillar of Islam and refers to a Muslim’s declaration of faith in one God (Allah) and His messenger (Muhammad). One becomes a Muslim by reciting the Shahada prayer (“Ash-hadu an la ilaha illa Allah, Wa ash-hadu anna Muhammadan Rasulu-Allah”) with conviction. Practicing Muslims recite the Shahada multiple times a day. [19]
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    Salat is the second pillar of Islam and refers to the five times a Muslim must pray while facing Mecca each day. These prayers are performed at dawn, noon, mid-afternoon, sunset, and after dark. This encourages practicing Muslims to remember Allah and their promise to worship Him. [20]
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    Sawm is the fourth pillar of Islam and refers to the act of fasting during the holy month of Ramadan. During Ramadan, the ninth month of the Islamic calendar, all healthy adult Muslims are required to abstain from food and drink during daylight hours. This serves as a reminder of the religious duty to help the less fortunate. [21]
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    Hajj is the fifth pillar of Islam and refers to the pilgrimage to Mecca (in present-day Saudi Arabia) each capable Muslim is required to make at least once in their life. The Ka’ba, a cubical structure at the center of the Haram Mosque in Mecca, is believed to be the house Abraham built for God, and believers face in its direction when they pray. Muslims gather around the Ka’ba on the eighth and twelfth days of the final month of the Islamic calendar. [22]
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      References

      1. ↑ https://pluralism.org/islamic-practices
      2. ↑ https://pluralism.org/islamic-practices
      3. ↑ https://iscf.org/paying-zakat-correctly/
      4. ↑ https://www.cosaraf.org/about/zakat-distribution-policy/
      5. ↑ https://nzf.org.uk/about-zakat/how-zakat-works/
      6. ↑ https://www.maainternational.org.au/islamic-donations/zakah-zakat-al-mal
      7. ↑ https://nzf.org.uk/about-zakat/knowledge-bank/
      8. ↑ https://www.ucf.edu/news/what-is-ramadan/
      9. ↑ https://sema-sy.org/understanding-zakat/
      1. ↑ https://www.zakat.org/what-requirements-qualify-wealth-for-zakat
      2. ↑ https://pluralism.org/islamic-practices
      3. ↑ https://nzf.org.uk/knowledge/history-of-zakat/
      4. ↑ https://pluralism.org/islamic-practices
      5. ↑ https://hands.org.pk/historical-background-of-zakat/
      6. ↑ https://islamicaid.com/islamic-giving/zakat-zakah/
      7. ↑ https://sema-sy.org/understanding-zakat/
      8. ↑ https://www.zakat.org/what-is-fitrana
      9. ↑ https://www.metmuseum.org/learn/educators/curriculum-resources/art-of-the-islamic-world/unit-one/the-five-pillars-of-islam
      10. ↑ https://www.metmuseum.org/learn/educators/curriculum-resources/art-of-the-islamic-world/unit-one/the-five-pillars-of-islam
      11. ↑ https://www.islamic-relief.org.uk/resources/knowledge-base/five-pillars-of-islam/
      12. ↑ https://www.metmuseum.org/learn/educators/curriculum-resources/art-of-the-islamic-world/unit-one/the-five-pillars-of-islam
      13. ↑ https://www.metmuseum.org/learn/educators/curriculum-resources/art-of-the-islamic-world/unit-one/the-five-pillars-of-islam

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