Zakat is one of the five pillars of Islam and a powerful act of worship that purifies wealth and supports those in need. Every year, especially during Ramadan, millions of Muslims calculate and distribute their Zakat correctly to fulfil their religious obligation.

But many still ask: What is Zakat in Islam? Who must pay it? How much is due? And why is it often given in Ramadan?

This complete Ramadan guide explains everything clearly and simply.

What Is Zakat in Islam?

Zakat (زكاة) literally means purification and growth. In Islamic law, it refers to a compulsory annual charity paid by eligible Muslims on their accumulated wealth.

It is:

• A pillar of Islam
• An obligation (fard)
• A purification of wealth
• A system of social justice

Allah commands in the Qur’an:

“Establish prayer and give Zakat…”
(Surah Al-Baqarah 2:43)

Zakat is not voluntary charity (Sadaqah). It is a mandatory act of worship.

Why Is Zakat Important?

Zakat serves both spiritual and social purposes:

1️⃣ Spiritual Purification

It purifies wealth from greed and selfishness.

2️⃣ Economic Balance

It redistributes wealth to reduce poverty and hardship.

3️⃣ Strengthening the Ummah

It builds compassion and unity within the Muslim community.

Who Must Pay Zakat?

Zakat becomes obligatory when a Muslim:

• Is adult and sane
• Owns wealth above the Nisab threshold
• Has held that wealth for one lunar year
• Has full ownership of that wealth

If these conditions are met, Zakat must be paid annually.

What Is Nisab?

Nisab is the minimum amount of wealth required before Zakat becomes due.

It is calculated based on:

• 87.48 grams of gold
  OR
• 612.36 grams of silver

Many scholars recommend using the silver Nisab as it benefits more poor people.

How Much Is Zakat?

Zakat is 2.5% (1/40th) of eligible wealth.

This applies to:

• Savings
• Cash
• Gold and silver
• Business inventory
• Investment assets
• Profits

Example:
If your eligible savings are £10,000, your Zakat is £250.

What Wealth Is Not Subject to Zakat?

Zakat is not due on:

• Personal home
• Personal car
• Clothing
• Furniture
• Daily-use items

It applies only to surplus wealth held for one lunar year.

Who Can Receive Zakat?

The Qur’an (Surah At-Tawbah 9:60) lists eight categories eligible to receive Zakat, including:

• The poor
• The needy
• Those in debt
• Travellers in hardship
• Those working to distribute Zakat

Zakat cannot be given to:

• Wealthy individuals
• Direct dependents (parents, children, spouse)

Why Do Many Muslims Pay Zakat in Ramadan?

Although Zakat can be paid any time during the year, many choose Ramadan because:

• Rewards are multiplied
• It is spiritually uplifting
• It ensures timely distribution before Eid
• It aligns with increased charity habits

However, Zakat is due based on your own lunar year not necessarily Ramadan.

Zakat vs Sadaqah – What’s the Difference?

Zakat	Sadaqah
Mandatory	Voluntary
2.5% fixed rate	Any amount
Specific recipients	Can be given to anyone in need
Once yearly	Anytime

Common Mistakes in Paying Zakat

• Using incorrect Nisab values
• Forgetting business stock
• Ignoring gold holdings
• Delaying payment without reason
• Giving to ineligible recipients

Accurate calculation is essential.

Frequently Asked Questions (FAQs)

1. Is Zakat compulsory for every Muslim?

No. It is compulsory only for Muslims whose wealth exceeds the Nisab threshold for one lunar year.

2. Can Zakat be paid in instalments?

Yes, as long as it is paid within the due year without unnecessary delay.

3. Do I pay Zakat on my salary?

Not directly. However, savings accumulated from salary that remain above Nisab for one lunar year are subject to Zakat.

4. Is Zakat due on gold jewellery?

Scholars differ. The Hanafi school requires Zakat on gold and silver jewellery above Nisab. Other schools may differ depending on usage.

5. Can Zakat be given to family members?

Yes, if they qualify as poor and are not your direct dependents.

6. What happens if someone does not pay Zakat?

Zakat is a serious obligation. Deliberately neglecting it is sinful and requires repentance and payment of missed years.

7. Can Zakat be paid online?

Yes, provided it is given to eligible recipients through trustworthy organisations IslamFreedom.org.

Final Reminder

Zakat is not just a financial transaction, it is a pillar of Islam, a purifier of wealth, and a means of supporting those in hardship.

Ramadan is an ideal time to calculate and fulfil your Zakat, but the obligation remains tied to your personal lunar cycle.

If unsure, consult a qualified scholar or use a reliable Zakat calculator.

May Allah accept your Zakat and increase your wealth in purity and blessing