According to the religion of Islam, seven groups of people are eligible to receive Zakat. I have described the type and the condition of these people in the following points:
- The poor (al-fuqarâ’): People who can’t fulfill their basic or minimum necessities of life
- The needy (al-masâkîn): Persons of extreme poverty who possess no wealth whatsoever
- People whose hearts are reconciled
- Those in bondage: Slaves and captives
- The debt-ridden: People who owe a large amount of money that exceeds their assets
- In the cause of God: Those who are away from home in the path of Allah
- The wanderer: People who travel with few resources to survive
How Can We Calculate Zakat?
Zakat is a charitable donation made by Muslims, which is 2.5% of their surplus or wealth that exceeds their needs. Surplus wealth or wealth that exceeds needs is the amount of savings and financial assets not used for essential living expenses, such as bills, house payments, or food.
To determine if one is liable to pay Zakat, one has to compare their wealth with a threshold figure(Nisab) which is measured using either gold or silver. To calculate Zakat, one can multiply their wealth by 0.025 or divide the wealth by 100 and multiply by 2.5, or use a Zakat calculator.
How Often Should I Pay Zakat?
Zakat should be paid once every year. When your wealth exceeds the Nisab amount, you can pay your Zakat.
