Understanding Zakat: Its Importance and Impact
Zakat is the core element of Islam. It is an annual obligatory charity that Muslims pay once in a year. Zakat maintains the economic balance in society. Before paying Zakat, understanding Zakat is crucial.
What is Zakat?
Zakat is a compulsory charitable giving in Islam. It differs from (Sadaqah) because it is an obligation, not just a choice. Muslims must give 2.5% of their savings if they meet the required amount, called Nisab.
The purpose of Zakat is to help the poor and support the community. It ensures that wealth is shared and not just kept by the rich. Muslims follow Allah’s command by giving Zakat and help build a better society.
“And establish prayer and give Zakat and loan to Allah a goodly loan. And whatever good you put forward for yourselves—you will find it with Allah, better and greater in reward.”
Surah Al-Muzzammil (73:20)
Who Is Eligible To Pay Zakat?
Indeed Zakat is an obligatory charity, but Allah (SWT) has made it quite easy for Muslims. It is obligatory for Muslims on the following specific conditions:
- A person must be an adult Muslim.
- They must own wealth that meets or exceeds the Nisab threshold.
- A full Islamic year (lunar year) must pass over their wealth.
Zakat applies to savings, gold, silver, business profits, investments, and other valuable assets. If a Muslim meets these conditions, they must pay Zakat once a year.
How to Calculate Zakat?
Zakat is 2.5% of your total savings. Simply put, if you have £50,000, your Zakat would be £1,250. Here’s an easy way to calculate your Zakat correctly:
- List Your AssetsFirst, check all your savings and assets that require Zakat. This includes gold, silver, money in the bank, shares, and business profits. Remember, any asset you have owned for more than a year is counted for Zakat.
- Add Up Your WealthAdd the value of all your assets and savings to get the total amount.
- Deduct Any DebtsIf you have any loans or debts that you need to repay, subtract that amount from your total wealth. You only pay Zakat on the remaining amount.
- Check If You Meet the NisaabThe Nisaab is the minimum amount you need to have before Zakat becomes necessary. If your remaining wealth is less than Nisaab, you do not have to pay Zakat. If it is equal to or more than Nisaab, then Zakat is due. Nisab is the lowest limit of wealth a Muslim needs to get to be obligated to pay Zakat. It can be measured through gold or silver
- Calculate 2.5% ZakatOnce you confirm your wealth is above the Nisaab, calculate 2.5% of your total savings. This is the amount you need to give in Zakat.
- Give Zakat to Those in NeedPay your Zakat to the poor, needy, or trusted charitable organizations that distribute it correctly.
You can also calculate Zakat with our Zakat calculator. It gives you the accurate result of Zakat and helps you in finding the right amount of your Zakat.
Who Can Receive Zakat:
Zakat is meant for those who truly need help. The Quran (Surah At-Tawbah 9:60) lists eight categories of people who can receive Zakat:
- The Poor – Those with little to no income.
- The Needy – Those struggling to meet daily expenses.
- Zakat Collectors – People who collect and distribute Zakat.
- New Muslims – Converts who need financial support.
- Slaves and Captives – To help free them.
- People in Debt – Those who cannot repay their loans.
- Stranded Travelers – Those in need far from home.
- In the Cause of Allah – Helping those striving for a good cause.
It is important to give Zakat to the right people. It should go directly to those who need it most.
The Impact of Zakat on Society
1. Fighting Poverty
Zakat provides financial help to the poor. It gives them food, shelter, and basic needs. This reduces poverty and helps struggling families live with dignity.
2. Economic Balance
When the rich give Zakat, wealth is shared fairly. It prevents extreme wealth gaps and ensures that everyone gets a chance to grow. Zakat impacts the economic stability of the community.
3. Strengthening Community
Zakat connects people. The rich support the poor, creating a sense of unity. It builds a caring and supportive society.
4. Spiritual Growth
Zakat is not just about money. It helps Muslims purify their hearts. It removes greed and teaches generosity. It reminds people that wealth is a blessing from Allah that should be shared.
Zakat Importance In The Quran:
The term Zakat is mentioned 32 times in the Holy Quran. This signifies the importance of this charity for the Islamic community. Some of the verses of the Holy Quran that explain the importance of this Islamic almsgiving are mentioned below:
- O believers! Donate from the best of what you have earned and of what We have produced for you from the earth. Do not pick out worthless things for donation, which you yourselves would only accept with closed eyes. And know that Allah is Self-Sufficient, Praiseworthy.
Surah Al-Baqarah (2:267)
- “Take, [O Prophet], from their wealth a charity by which you purify them and cause them increase, and invoke [Allah’s blessings] upon them. Indeed, your invocations are reassurance for them. And Allah is Hearing and Knowing.”
Surah At-Tawbah (9:103)
- “And establish prayer and give Zakat, and whatever good you put forward for yourselves—you will find it with Allah. Surely, Allah sees what you do.”
Surah Al-Baqarah (2:110)
Zakat Importance In Hadiths:
The importance of Zakat is also highlighted in several Hadiths as well. The Holy Prophet (PBUH) in his life taught people to pay Zakat and not ignore it. A few Hadiths that explain the significance of Zakat are:
- Narrated by Abu Huraira (may Allah be pleased with him):
“The Prophet (PBUH) said: ‘Whoever is made wealthy by Allah and does not pay the Zakat of his wealth, then on the Day of Resurrection his wealth will be made like a bald-headed poisonous male snake with two black spots over the eyes. The snake will encircle his neck and bite his cheeks and say, ‘I am your wealth, I am your treasure.’…”
Reference: Sahih al-Bukhari, Book 24, Hadith 486
- Narrated by Anas ibn Malik (may Allah be pleased with him):
“Abu Bakr (may Allah be pleased with him) wrote to me about the Zakat which Allah had ordered His Messenger (PBUH) to observe: ‘…If they obey that, then tell them that Allah has enjoined upon them charity (Zakat) from their wealth, to be taken from the rich and given to their poor…'”Reference: Sahih al-Bukhari, Book 24, Hadith 573
- Narrated by Abu Huraira (may Allah be pleased with him):
“The Prophet (PBUH) said: ‘The Last Hour will not come before wealth becomes abundant and overflowing, so much so that a man takes Zakat out of his property and cannot find anyone to accept it…”Reference: Sahih Muslim, Book 12, Hadith 76
Zakat is more than just charity; it is a social and religious responsibility for every financially capable Muslim. Understanding Zakat is essential, as it plays a crucial role in improving the economic condition of society.
By giving Zakat, the needs of the poor are fulfilled, helping them lead a better life. It also works to reduce poverty and create a fair distribution of wealth. The importance of Zakat has been emphasized many times in the Holy Quran and the teachings of the Prophet Muhammad (PBUH).
You can pay your Zakat to Ehsaas Trust to help our Muslim brothers and sisters in need. Your little share of money can be a big share of happiness for someone.
