Zakaat – SS1 Islamic Studies Lesson Note (Third Term)

Zakaat is one of the Five Pillars of Islam. It is a type of charity that Muslims must give if they have enough money. The word “Zakaat” comes from Arabic and means “to purify” or “to grow.” When Muslims give Zakaat, they believe they are purifying their wealth and helping it grow in blessings.

Zakaat is not the same as regular charity. It is a duty that Allah (God) has made compulsory for Muslims who have enough wealth. In the Quran, prayer (Salaat) and Zakaat are often mentioned together, showing how important both are in Islam.

Behavioural objectives

By the end of the lesson, students should be able to:

• explain the meaning of Zakaat and give reasons why it is important;
• state the conditions a Muslim must meet before paying Zakaat and explain what nisab is;
• list the types of wealth on which Zakaat is paid and is not paid;
• calculate Zakaat on money using the rate of 2.5%;
• name the eight categories of people who can receive Zakaat;
• state the difference between Zakaat and Sadaqah.

Why is Zakaat important?

Zakaat is important for many reasons:

1. Obeying Allah: Muslims give Zakaat because Allah has commanded it in the Quran.
2. Helping the poor: Zakaat helps people who do not have enough money for their basic needs.
3. Reducing inequality: It takes money from the rich and gives to the poor, making society more equal.
4. Purifying wealth: Muslims believe that Zakaat purifies their remaining wealth from greed and selfishness.
5. Testing generosity: Giving Zakaat tests whether a person loves money more than Allah.
6. Building community: Zakaat creates a bond between the rich and poor in the Muslim community.
7. Personal growth: Giving Zakaat helps Muslims become less attached to material things.

Who must pay Zakaat?

What are the conditions for paying Zakaat?

Not every Muslim has to pay Zakaat. A Muslim must meet these conditions to be required to pay Zakaat:

1. They must be a Muslim.
2. They must be an adult (reached puberty).
3. They must be sane (of sound mind).
4. They must be free (not a slave, though slavery is no longer practised).
5. They must own wealth above the “nisab” (minimum amount).
6. They must have owned this wealth for one full lunar year (about 354 days).
7. The wealth must be growing or have the potential to grow.
8. They must have full ownership of the wealth.
9. They must not have debts that would reduce their wealth below the nisab.

What is nisab?

The nisab is the minimum amount of wealth a Muslim must have before they need to pay Zakaat. It is set at:

• the value of 87.48 grams of gold, or
• the value of 612.36 grams of silver.

Muslims can use either the gold or silver value to determine if they must pay Zakaat. At today’s prices, this is roughly:

• Gold: about $5,000 to $6,000 (depending on current gold prices)
• Silver: about $500 to $600 (depending on current silver prices)

Most scholars today suggest using the silver value as it helps more poor people receive Zakaat.

What types of wealth is Zakaat paid on?

Muslims must pay Zakaat on different types of wealth:

1. Money: This includes cash, bank deposits, savings accounts, and similar cash-like assets.
2. Gold and silver: Jewellery, coins, bars, or any other form of gold and silver that exceeds the nisab.
3. Business assets: Goods that are bought to sell for profit. This includes inventory and merchandise.
4. Livestock: Animals like camels, cows, sheep, and goats that graze freely (not animals kept as pets or for work).
5. Agricultural produce: Crops and fruits that can be stored, like wheat, barley, dates, and raisins.
6. Minerals and treasures: Natural resources extracted from the earth or treasures found buried.
7. Stocks and investments: Shares in companies, mutual funds, and other investments.

What types of wealth is Zakaat not paid on?

Zakaat is not required on:

• personal items like clothes, furniture, and cars used by the family
• the house you live in
• tools used for work
• books used for study
• food for personal consumption
• debts that you owe to others

How much Zakaat is paid, and when?

How much Zakaat must be paid?

The amount of Zakaat varies depending on the type of wealth:

1. Money, gold, silver, and business assets: 2.5% of the total value.
   Example: If you have $10,000 in savings, you pay $250 as Zakaat.
2. Livestock: The rate varies based on the type and number of animals.
   Example: For 40 sheep, the Zakaat is 1 sheep.
3. Agricultural produce:
   • 10% if the land is watered naturally (by rain or rivers)
   • 5% if the land is watered artificially (using pumps or irrigation)

   Example: If you harvest 1,000 kg of wheat from rain-fed land, you give 100 kg as Zakaat.

4. Minerals and treasures: 20% of the found value.
   Example: If you find gold worth $1,000, you give $200 as Zakaat.

How to calculate Zakaat on money

Follow these steps to calculate Zakaat on money:

1. Add up all your Zakaat-eligible assets:
   • Cash at home and in bank accounts
   • Value of gold and silver jewellery (not worn daily)
   • Value of stocks and investments
   • Business inventory
   • Money people owe you (that you expect to receive)
2. Subtract your debts and essential expenses:
   • Money you owe to others
   • Upcoming rent or bills (before next Zakaat date)
3. Check if the remaining amount is above the nisab (minimum threshold).
4. If it is above the nisab, multiply the amount by 2.5% (or 0.025).

Example:
Total assets: $20,000
Total debts: $5,000
Net Zakaat-eligible wealth: $15,000
Zakaat payable: $15,000 × 0.025 = $375

When to pay Zakaat?

Zakaat is calculated and paid once every lunar year (Hijri year). This means:

1. Set your “Zakaat date”, the day when your wealth first reached the nisab.
2. When a full lunar year (about 354 days) passes, calculate your Zakaat again.
3. Pay Zakaat if your wealth is still above the nisab.

Many Muslims choose to pay their Zakaat during the month of Ramadan because good deeds bring more rewards in this holy month.

Who can receive Zakaat?

Who are the eight categories of receivers?

The Quran (9:60) mentions eight categories of people who can receive Zakaat:

1. The poor (Al-Fuqara): People who have very little money, less than half of what they need.
2. The needy (Al-Masakin): People who have some money but not enough for their basic needs.
3. Zakaat workers (Al-Amilina Alayha): People who collect and distribute Zakaat.
4. Those whose hearts are to be reconciled (Al-Mu’allafati Qulubuhum): New Muslims or people who might accept Islam.
5. To free slaves (Fir-Riqab): Money used to free people from slavery or captivity.
6. Those in debt (Al-Gharimin): People who have debts they cannot pay.
7. In the cause of Allah (Fi Sabilillah): People working for Islamic causes, like building mosques or spreading knowledge.
8. Travellers in need (Ibn as-Sabil): Travellers who are far from home and need help.

Who cannot receive Zakaat?

Zakaat cannot be given to:

• rich people (who have wealth above the nisab)
• non-Muslims (according to most scholars)
• your own parents, grandparents, children, or grandchildren
• the family of Prophet Muhammad (peace be upon him)
• your spouse
• people who use it for harmful or forbidden things

What is the difference between Zakaat and Sadaqah?

Zakaat is compulsory and has fixed rules. Sadaqah (voluntary charity) is optional and has no fixed rules.

Sadaqah can be money, help, a smile, or a kind word.

What is Zakaat Al-Fitr?

Besides the regular Zakaat on wealth, there is a special type called “Zakaat Al-Fitr” or “Fitrana.” It is:

• given at the end of Ramadan, before Eid prayer
• required from every Muslim, rich or poor
• equal to the cost of one meal (about $10 to $15 per person)
• given on behalf of every family member, including babies
• meant to help the poor enjoy the Eid celebration

How can Zakaat be paid today?

What are the modern ways to pay Zakaat?

Today, Muslims can pay Zakaat in many ways:

• directly to eligible people they know
• through local mosques and Islamic centres
• via Islamic charities and Zakaat funds
• online through certified Zakaat collection organisations
• using Zakaat calculators on websites and apps

Common questions about Zakaat

Can I give Zakaat to my poor relatives?

You can give to relatives like cousins, aunts, and uncles, but not to those you are obliged to support (parents, children, grandparents).

Should I tell people that I’m giving them Zakaat?

It is better to give Zakaat discreetly to avoid embarrassing the receiver. However, if you are giving to an organisation, you should specify that it is Zakaat so they can distribute it correctly.

Can I give Zakaat to build a mosque?

Most scholars say Zakaat should not be used for building mosques. It should go directly to people in need.

What if I missed paying Zakaat for several years?

You should calculate the Zakaat you owed for each year and pay it as soon as possible.

Can I pay my Zakaat in advance?

Yes, you can pay Zakaat in advance for convenience, especially to trustworthy organisations that distribute it throughout the year.

What are the blessings of Zakaat?

Giving Zakaat brings many blessings:

• Allah promises to replace what you give and increase your wealth
• It protects your wealth from harm and destruction
• It earns Allah’s pleasure and rewards in the afterlife
• It purifies your heart from greed and attachment to money
• It helps others and makes society better

Prophet Muhammad (peace be upon him) said: “The upper hand (the one that gives) is better than the lower hand (the one that receives).” Giving Zakaat makes a Muslim’s hand the “upper hand” that helps others. Zakaat teaches Muslims to be generous and reminds them that all wealth ultimately belongs to Allah.

Zakaat in history

Zakaat has been important throughout Islamic history:

• It was formally established in the second year after Hijrah (migration to Madinah).
• The first Caliph, Abu Bakr, fought those who refused to pay Zakaat.
• During the time of Caliph Umar ibn Abdul Aziz, so many people paid Zakaat that it was hard to find poor people to give it to.
• Muslims built hospitals, schools, and public services using Zakaat funds.

Evaluation

1. State four conditions that a Muslim must meet before paying Zakaat.
2. What is nisab, and how is it set?
3. A Muslim has total Zakaat-eligible assets of $8,000 and debts of $2,000. Assuming the remaining amount is above the nisab, how much Zakaat must he pay?
4. List the eight categories of people who can receive Zakaat.
5. State three differences between Zakaat and Sadaqah.

Assignment

1. Explain five reasons why Zakaat is important in Islam.
2. List four types of wealth on which Zakaat is paid and four on which it is not paid.
3. Describe Zakaat Al-Fitr and say when it is given.