Islamic Provision is a UK-based international relief and development charity organization. Inspired by the Islamic teachings of compassion, generosity and selflessness.
WHAT IS ZAKAH?
Zakah is one of the Pillars of Islam and an islamic obligation that must be performed once a year. Zakah is not an option it is a compulsory act for all Muslims. It is an act in which one pays 2.5% of their annual savings to those in need. It is a religious duty which washes away impurities from our provision and ensures excess wealth is distributed amongst those in need.
When Should Zakah Be Paid?
Zakah is paid when two conditions are met:
The Nisaab: the minimum amount of wealth a Muslim must possess before they become eligible to pay Zakat.
The Hawl: A luner Year (354 Days/Islamic Year) has passed on it after reaching the Nisaab .
The Nisab was set by the Prophet Muhammad (peace be upon him) at a rate equivalent to: 87.48 grams of gold and 612.36 grams of silver. In today’s day and age we do not use silver or gold as monetary exchange so when calculating your Zakat, you need to find out the equivalent of the rates the Prophet (peace be upon him) set but in your local currency.
This can be done by checking the market rate of gold and silver today. If the money comes to less than the nisaab amount then no Zakah is due.
Islamic Provision is a UK-based international relief and development charity organization. Inspired by the Islamic teachings of compassion, generosity and selflessness.