WHAT IS ZAKAT?
Zakat, as translated from Arabic means growth, multiplicity, or increase. The word ‘Zakat’ also carries the meanings of fertility, purification, and full of blessings (baraqah).
The foundation of Islam is held up by the five pillars, and Zakat forms the third pillar. It refers to the determined share of wealth prescribed by Allah s.w.t, to be distributed to the eight groups of beneficiaries (asnaf). It is a form of worship (ibadah) in terms of wealth.
A symbol of Islamic social justice, Zakat cleanses your soul, purifies/grows your wealth, and is a socioreligious tool to help eradicate poverty in a community or society. Zakat is also a spiritual bridge and connection to Allah s.w.t – to purify your wealth for the will of Allah and to His cause is to acknowledge that everything one owns belongs to Him, and it is for Him that we strive to end poverty.
AL-QURAN
HADITH
FIQH ZAKAT
Ustaz Izal Mustafa Kamar from the Office of the Mufti (OOM) shares on the fundamental principles of Zakat including the concepts of Nisab and Haul and the basics of Zakat calculations for the different types of Zakat i.e. Savings account
CONDITIONS FOR FULFILLING ZAKAT
ONE IS MUSLIM
Zakat is one of the of the pillars of Islam, which makes it obligatory only upon Muslims. It is not obligatory for the non-believers to fulfil Zakat, nor will it be accepted from them if they choose to pay it.
ONE'S WEALTH HAS REACHED THE NISAB
Nisab refers to the minimum amount of one’s wealth that is liable for Zakat at any point of time in the Islamic (Hijri) year. Nisab is based on 86 grams of gold.
ONE HAS COMPLETED THE HAUL
Haul refers to a period of 1 Islamic (Hijri) year, approximately 355 days. It begins from the first day that one's wealth reaches the nisab OR from the date one fulfilled his/her zakat. Should at any point of time a person’s wealth falls below the nisab, the haul period will cease and haul only starts anew when the nisab is reached again.
ONE HAS COMPLETE OWNERSHIP OF WEALTH
Zakat is only obligatory upon wealth or assets that one has complete ownership over. For example, Zakat is payable for savings, investments, insurance, gold, and businesses. Where an asset is not accessible or liquidated (monies in CPF accounts that cannot be withdrawn, or monies in a Child Development Account), Zakat is not payable.
ZAKAT vs SADAQAH
ZAKAT IS OBLIGATORY
Sadaqah is only encouraged (an act of sunnah)
ZAKAT HAS A SPECIFIC RATE OF 2.5% OF ONE'S WEALTH
Sadaqah has no specific rate and is based on one's goodwill and ability
ZAKAT HAS A SPECIFIC PERIOD OF FULFILMENT (HAUL)
Sadaqah may be given at any time
ZAKAT HAS SPECIFIC BENEFICIARIES (ASNAF)
Sadaqah may be given to anyone
SIGNIFICANCE OF ZAKAT
Zakat is often mistaken as a form of religious tax and a financial transaction. However, Zakat is in fact a religious obligation for all abled and privileged Muslims to redistribute and share their wealth and blessings with the underprivileged in the community.
More importantly, Zakat serves as nourishment for one’s soul and purify it from undesirable traits and characteristics such as miserliness.
FOR SELF
Zakat has numerous benefits for the individual and for society. One of the primary purposes of Zakat is to purify and grow one’s wealth.
SIGNIFICANCE OF ZAKAT
Purifying and growing your wealth and assets
Developing gratitude for Allah's blessings and abundance
Bringing a sense of peace and well-being
Building a more socially equitable society
Spreading love and minimising envy between people
FOR SOCIETY
Besides the benefits for one’s the self, Zakat also elevates society. Zakat seeks to build a more equitable society and uphold social justice. It also neutralises the excessive love for material possessions and gains.
As a commandment from Allah s.w.t, Zakat is also an expression of one’s love, obedience, and submission to the Almighty. By fulfilling Zakat, one is expressing gratitude and contentment for His blessings. This brings serenity and a sense of peace to one’s self.
It is the institution of Zakat that Billing Information income disparity and social inequality in society. Thus, Zakat brings society a step closer towards the equality of wealth, and assists those who may have fallen through the cracks.
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