What Is Zakat and Why Is It Obligatory in Islam?

Zakat is the third pillar of Islam and one of the most important obligations that eligible Muslims must fulfill each year. It is a financial form of worship and offers many spiritual benefits to the giver. It also provides a means to regulate wealth, thereby creating a more equitable society for everyone. Many individuals and households can benefit from that money, and thus, Zakat can have a significant impact on lives. Moreover, by giving Zakat, believers practically demonstrate their love for Allah (SWT) and distance themselves from the allure of accumulating wealth and power. Giving Zakat purifies one’s wealth and, according to the Qur’an and Hadith, is a duty that all eligible Muslims must not overlook. Paying Zakat is easier than it ever has been. You can Pay Zakat Online within minutes and fulfill this important duty.

What is Zakat?

Zakat is mandatory almsgiving in Islam. The word is derived from ‘z-k-w’, which means ‘purification’. Purification is a recurrent theme in Islam. Zakat purifies wealth; just as we perform ablution before saying prayers, giving Zakat annually helps purify one’s wealth and keep it spiritually blessed.

Who Must Pay Zakat?

Zakat becomes obligatory once your wealth reaches the Nisab threshold. Believers with wealth equal to or greater than the Nisab value must pay Zakat annually. The Nisab serves as a threshold for Zakat eligibility. The Nisab value is equal to:

612.36 grams of silver or 87.48 grams of gold

Many Islamic scholars recommend using the silver standard to lower the bar for Zakat eligibility.

Zakat is calculated at 2.5% (1/40th) of eligible wealth. All you have to do is sum up your total wealth, deduct your liabilities, and get 2.5% (1/40th) of the amount. Items of personal use are not included in Zakat calculations. The following are some of the types of wealth that must be included while calculating wealth:

Gold (jewelry also counts, whether in use or not)
Silver (all forms, including jewelry)
Cash in hand
Cash in banks
EasyPaisa/Jazz Cash/Other digital platforms
Loans given to others
Investments
Trade merchandise, including goods purchased for the purpose of selling
Money invested in the local committee
Rotating Savings and Credit Association/ local committees, etc

Remember that Zakat is an annual obligation and must be paid exactly after the completion of an Islamic lunar year. One must not delay the Zakat obligation and pay it exactly within the allowed time. However, many Muslims like to give Zakat during Ramadan, which is a heightened period of Islamic spirituality. If you want to give Zakat in Ramadan, you will have to give it as an advanced Zakat payment for the coming year. But before doing that, make sure that the Zakat obligation for your current year is cleared and not deferred.

Who is Eligible to receive Zakat donations?

While most of us know that Zakat donations should be given to deserving individuals, the Qur’an clearly defines the categories that are eligible to receive it.

The following categories of Muslims are eligible to receive Zakat charity:

Al-Fuqaraa – poor people having low or no income.

Al-Masakin– people who have some possessions but not enough to support a day-to-day living.

Zakat Collectors — people nominated by an Islamic state to collect Zakat donations.

New Converts — People who converted to Islam recently.

People in debt — people unable to pay their debt.

For Fi Sabeelillah — people who dedicated their lives to the cause of Islam.

Wayfarers & Travelers — people who are traveling.

Those in captivity—people who are imprisoned or in captivity.

Why Is Giving Zakat Obligatory in Islam?

The Zakat obligation isn’t new. The Qur’an clearly states that giving Zakat is obligatory:

“And establish prayer and give zakah and bow with those who bow [in worship and obedience].”(Surat Al-Baqarah, 2:43)

The Qur’an and the Hadith establish the significance of Zakat. The following Hadith clearly establishes Zakat as one of the five fundamental pillars/principles of Islam:

“Narrated Ibn ‘Umar:

Allah’s Messenger (ﷺ) said: Islam is based on (the following) five (principles):

To testify that none has the right to be worshipped but Allah and Muhammad is Allah’s Messenger (ﷺ).
To offer the (compulsory congregational) prayers dutifully and perfectly.
To pay Zakat donations (i.e. obligatory charity) .
To perform Hajj. (i.e. Pilgrimage to Mecca)
To observe fast during the month of Ramadan.” (Sahih al-Bukhari, 8)

Therefore, Zakat is a direct command by Allah (SWT) and the Prophet Muhammad (ﷺ) established it as a core part of faith. Remember that it is not optional charity for those who qualify; it is a responsibility that must be taken very seriously.

Refusing to pay Zakat or taking the obligation casually is a sin. According to the following Hadith, the Prophet (ﷺ) said:

The Messenger of Allah (ﷺ) said, “I have been ordered to fight against the people until they testify that there is none worthy of worship except Allah and that Muhammad is the Messenger of Allah, and until they establish the salah and pay the zakat. And if they do that, then they will have gained protection from me for their lives and property, unless [they commit acts that are punishable] in Islam, and their reckoning will be with Allah.” [Bukhari & Muslim] (Hadith 8, 40 Hadith an-Nawawi)

How Zakat Benefits the Giver and Society

Allah (SWT) is the kindest; His expectations from believers are not to put them under unnecessary trial, but help them improve and evolve as better humans. Giving Zakat donations comes with many benefits.

Purification of Wealth: Zakat cleans wealth from impurities and purifies the heart from materialism. Tazkiyah al-Nafs, the purification central to Islam. The world and its temptations must not stop us from preparing for our true destination, which is the afterlife. The Qur’an tells us:

“Take, [O, Muhammad], 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.” (Surat At-Tawbah, 9:103)

The following Hadith tells us about the dangers of accumulating wealth: The Messenger of Allah (ﷺ) said: “Two wolves free among sheep are no more destructive to them than a man’s desire for wealth and honor is to his religion.” (Jami` at-Tirmidhi, 2376)

Social Justice: We live in an inequitable world. However, Allah (SWT) has provided a solution to improve everyone’s lives. By giving Zakat charity and Sadaqah, we help improve many lives.

Worship: Zakat is a form of worship and a great way of showing obedience to Allah (SWT). It helps us complete our faith and practice Islam in its true essence. Zakat brings spiritual growth, barakah in remaining wealth, and reward in the Hereafter.

Spiritual Blessings: Giving charity isn’t only a responsibility. It promises numerous spiritual rewards

Make a Difference With Your Zakat Donations

Besides being one of the most important religious obligations, Zakat donations provides a great opportunity for believers to contribute to the well-being of individuals and families suffering from poverty and lack of resources.

Transparent Hands has assisted over 370,000 deserving Pakistanis with surgeries and healthcare access since 2014. We have a noteworthy maternal and child healthcare program that has benefited thousands of women and children. We also support a number of free surgeries and medical procedures, including neurosurgical, ENT, gynecological/obstetric, urologic, orthopedic, pediatric, general, and many more. We also arranged medical camps in low-income areas that dispense free medical checkups, medicines, and diagnostics, free of cost.

The best part is that we maintain complete transparency, and the impact of our work can be seen on our online forums. We are Shariah-compliant, and our operations and collection of donations are according to the rulings prescribed by Islam. You can donate to us without any hesitation. The best part is that you can Pay Zakat Online safely and with complete convenience. Donate your Zakat, Sadaqah, Fidya, Fitrana, and other donations to Transparent Hands now online. Let’s change the world together.