Islamic Finance

Complete Zakat Guide

Everything you need to know about Zakat — its importance, conditions, recipients, and how to calculate your obligation.

What is Zakat?

3rd Pillar of Islam

Zakat is one of the Five Pillars of Islam — an obligatory act of worship in which eligible Muslims contribute a fixed portion of their accumulated wealth to specific categories of people in need. The word Zakat means purification and growth; by giving Zakat, a Muslim purifies their wealth and soul, and helps strengthen the broader community.

"And establish prayer and give Zakat, and whatever good you put forward for yourselves — you will find it with Allah." (Quran 2:110)

Who Must Pay Zakat?

Zakat becomes obligatory when all these conditions are met:

Muslim

Zakat is only obligatory on Muslims.

Free Person

A free person, not enslaved.

Sound Mind & Adult

The person must be of sound mind and have reached puberty.

Owns Nisab

Wealth equal to or above the nisab threshold must be owned.

One Lunar Year (Hawl)

The wealth must have been held for a complete lunar year.

Wealth Above Basic Needs

Wealth is surplus to basic living necessities and outstanding debts.

Nisab Threshold

Nisab is the minimum wealth a Muslim must own before Zakat becomes obligatory. Two standards apply:

Gold Standard

87.48 grams of gold

Silver Standard

612.36 grams of silver

Most scholars recommend using the silver nisab as it is lower, making Zakat accessible to more givers and benefiting more recipients. Always verify current metal prices to get the nisab value in BDT.

The Zakat Rate

2.5%

on monetary wealth, gold & silver

Zakat on monetary wealth, gold, silver, and trade goods is 2.5% of the total net zakatable wealth. Agricultural produce and livestock have different rates set by Islamic jurisprudence.

Who Can Receive Zakat?

The Quran (9:60) specifies eight eligible categories:

1

Al-Fuqara — The Poor

People with very little wealth who cannot meet their basic daily needs.

2

Al-Masakin — The Needy

Those in extreme poverty and hardship, often worse off than the Fuqara.

3

Amil al-Zakat — Zakat Collectors

Those legitimately employed to collect and distribute Zakat funds.

4

Al-Muallafat Qulubuhum — New Muslims

New Muslims or those whose hearts are being reconciled to Islam.

5

Fi al-Riqab — Freeing the Oppressed

Historically used to free enslaved people; extended today to those in unjust captivity.

6

Al-Gharimin — The Indebted

Those in debt for legitimate reasons who are unable to repay.

7

Fi Sabilillah — In the Way of Allah

Those striving for Allah — including education, humanitarian, and da'wah causes.

8

Ibn al-Sabil — Stranded Travellers

Travellers who are far from home and lack funds to return.

Ready to Give Your Zakat?

Use our calculator to find your exact Zakat amount, then give directly to Al Hidaya Foundation.

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