What is Zakat/Zakat al Mal?

 Zakat / Zakat al Mal is the third pillar of Islam and is a compulsory charity of 2.5% of a person’s wealth, if they have more than the Nisab value (which can be calculated in gold or silver). Historically, it was set up as a welfare system to support the poor and needy. Zakat is deemed to be the right of the poor.

 So who needs to pay Zakat / Zakat al Mal?

 Any Muslim who is past the age of puberty and is sound of mind is eligible to pay Zakat, as long as they meet the threshold of Nisab.

 What do you pay Zakat / Zakat al Mal on?

You have to pay Zakat on a number of things: Cash and savings (including any money lent to others). Gold and silver, which includes jewellery containing the precious metal. Stocks, shares and investments Pensions Investment properties Produce and livestock

 Who receives my Zakat / Zakat al Mal?

 Zakat is given to one of eight categories listed in the Holy Quran. The poor, the needy, those in debt, the wayfarer (traveller), those who strive in the way of Allah (swt), those whose hearts are to be reconciled, freeing those who are in captivity and those who distribute Zakat.

When do I pay my Zakat / Zakat al Mal? Zakat / Zakat al Mal is payable annually, generally based on the lunar calendar. As long as your wealth remains above the Nisab threshold on that day every year it is obligatory for you to pay it.

 What happens if I have missed my previous Zakat / Zakat al Mal payments? It is still obligatory for you to pay all of your missed Zakat / Zakat al Mal payments, If you are unsure of the amount, you do need to work out the amount of each year that you owe, to ensure you are above the Nisab threshold and eligible to pay.