Zakat

Zakat is the obligatory almsgiving in Islam and is one of the Five Pillars. It requires Muslims who have wealth above a defined threshold to donate a fixed portion to specified categories of people, usually annually.

Zakat al-mal is the standard form of wealth zakat, typically 2.5% of qualifying wealth that has been held for a lunar year (hawl) beyond the nisab, the minimum wealth threshold. The nisab is commonly linked to the value of 85 grams of gold or 595 grams of silver, though residents may use current market values. Eligible assets include cash, savings, investments, business stock, rental income, and agricultural produce; personal possessions, housing, and basic living items are generally exempt. The zakatable amount is the surplus above the nisab over the full lunar year.

Recipients are defined in Islam as eight asnaf: the poor, the needy, zakat collectors, those whose hearts are to be reconciled, freeing enslaved people or captives, debtors, those in the path of God, and travelers in need.

Zakat al-fitr is a separate obligation tied to Ramadan and is paid before the festival of Eid al-Fitr. It is typically a fixed quantity of staple food or its monetary equivalent, intended to purify the observer’s fasting and assist the needy.

While the core concepts are shared, practices and rates may vary by Islamic school of jurisprudence and country; owners should consult local scholars or authorities for guidance. Zakat is intended to redistribute wealth, purify wealth, and support social welfare within the Muslim community.