Being a Muslim, it is our religious obligation to comply with our basic five religious pillars, with Zakat also included in them. But the main question which arises is how to calculate zakat on salary. Calculating it may be difficult, but you can do it easily by considering the Nisab applicable to your earnings and savings. If you still have any confusion, you can get in touch with Transparent Hands to discuss the matter and donate your Zakat to the organization. We aim at helping the poor people by offering them quality healthcare facilities free of cost using the donations and Zakat you grant us.
The Arabic word zakat refers to “to enhance” and “that which cleanses.” So purifying one’s annual income and savings is a crucial Islamic principle. All types of surplus wealth and assets, including cash on hand, precious metals, agricultural products, cattle sales, stock market profits, and individual savings, must be donated. It, therefore, frees one’s heart from selfishness and greed. It is a method for preserving social harmony and living peacefully with others.
Significance of Zakat
The significance of Zakat is emphasized over eighty times throughout the Quran. All calculations and contributions must be accurate and truthful. If you’re a salaried person, it is better to calculate Zakat on salary properly and take assistance from someone who knows it all better. Allah allows man to become closer to Him as a result of man’s faith who gives Zakat. It plays a crucial part in preventing discrimination and eliminating poverty from society. In addition, when the poor share money equally, problems like slavery, exploitation, and crime disappear. This yearly donation practice is fundamentally intended to promote love and harmony among Muslims worldwide in the name of Allah.
Calculation Techniques for Zakat
To determine if your assets exceed the Nisab, you must first determine your Zakat requirement. A person must own a specific amount of money as directed by Nisab and Sharia to be subject to the Zakat obligation.
One Nisab is equal to 87.48 grams of gold or 612.36 grams of silver in terms of the Prophetic tradition, but its actual market worth will depend on the market value of gold because that’s the standard to calculate the value of any country’s currency. It is crucial to have the most current assessment possible since Nisab’s market value changes from year to year.
Due to the significant price difference between the two metals, the Nisab for silver is much lower than that for gold. Both amounts are acceptable for calculating Zakat, however many scholars advise using the Nisab of silver rather than the other so that more individuals can afford to pay and those in need may get assistance.
You must determine your zakat obligation and pay it using whatever cash you’ve accumulated over at least one lunar year. This Includes:
- decorations and jewelry made of precious metals like gold and silver
- shares and equity
- how much cash you have lent to other people
- any money stored in home safes or bank accounts
- your particular investment property
Calculate Zakat on Salary
If you get a wage but use it entirely for daily expenses, you do not meet the requirement of having wealth over the nisab value for a whole year, hence you have no money on which to pay Zakat. That means you don’t have to worry about the question of how to calculate Zakat on salary. Before the first payment is due, the nisab, the smallest amount of wealth susceptible to zakat, must be held for a full year.
If you talk about calculating zakat on income, you must calculate your zakat with care if your income is unpredictable and does not remain the same each month. Keeping track of your earnings, expenses, and savings will allow you to calculate your annual Zakat commitment.
The first step in making an online zakat payment is to use a straightforward Zakat Calculator. Based on the value of your various assets, it makes generating a 2.5% dividend less complicated and time-efficient.
We provide an easy-to-use zakat calculator to take over all the responsibility of calculating zakat for every person. Calculating your payable obligatory amount according to your nisab may seem a hard task for many people. However, with the help of Transparent Hands, this won’t remain something difficult now. You just think about your good deeds and obligatory tasks, and the rest is our responsibility to fulfill for you. The only thing you have to do is to provide the details of your assets. Make sure that you provide the updated details so that we can use them for calculating nisab according to the current rate. Here are a few steps you need to calculate zakat on salary.
- Take all your assets into account
- Now calculate the loan or debt you have to pay
- Make sure that your current balance is more than the nisab
- Now calculate 2.5% of your current balance, this is how you get the amount of Zakat applicable to your wealth.
To Wrap It Up
Our religion orders us to perform some obligations which are essential to follow every Muslim brother. No matter what your gender is, what your earnings are, what is your social status, or anything, these religious obligations are crucial for all. Zakat is a part of our religion and comes from the list of five pillars of Islam. The amount of zakat you have to pay is determined by the nisab on your total wealth. Now that we have presented sufficient information on how to calculate zakat on salary, this won’t be difficult for you.