Zakat Al-Mal

What is Zakat Al-Mal? Zakat Al-Mal is an obligatory charity which is a duty upon every abled Muslim. 2.5% of a Muslim accumulated wealth calculated yearly, and the proceeds should be distributed among the poor and needy, more specifically saying distributed to the eight eligible groups who can obtain zakat. What is Zakat Al-Fitr? Zakat Al-Fitr has to be given by the head of the family before the start of the Eid-prayer, to the poor and less privileged. This is to ensure that all Muslims celebrate a hunger free Eid filled with happiness and contentment. The local food or wheat is generally used as a measure in giving Zakat Al-Fitr. When Should You Pay Zakat? Zakat has to be paid when one lunar year (hawl) has passed, starting from the day your wealth exceeds the nisab (the minimum amount a Muslim must have before being obliged to pay Zakat/Zakah). It can be paid at any time of the year, but it should not exceed more than one hawl. It is always a good idea to have a specific date to pay Zakat so that you do not miss out on this duty. How is Zakat calculated? Zakat is calculated by deducting 2.5% of your combined wealth. This includes currency, gold and silver, and trade goods. If one has agriculture or livestock in their possession, then they must also pay Zakat to cover those possessions. It is important to note that Zakat on livestock and agriculture is different from the Zakat on individuals. Why Zakat is important? Zakat is important for many reasons. Firstly Zakat is a Pillar of Islam and if one has sufficient wealth and does not fulfil their obligation of paying their Zakat then they are committing a major sin. Zakat is the right of the poor and needy Muslims. By paying your Zakat you are helping the lower and middle classes of society which raises economic activity and productivity and reduces poverty which in turn helps in the redistribution of wealth. Through Zakat, Allah also blesses your wealth and causes it to grow. 8 kinds of people who receive Zakat Zakat is to be given to 8 categories that Allah SWT has mentioned in the Holy Quran. “Zakah expenditures are only for the poor and for the needy and for those employed for it1 and for bringing hearts together [for Islam] and for freeing captives [or slaves] and for those in debt and for the cause of Allah and for the [stranded] traveler – an obligation [imposed] by Allah. And Allah is Knowing and Wise.” (Quran 9:60) - The Poor (al-fuqarâ’), meaning low-income or indigent. - The Needy (al-masâkîn), meaning someone who is in difficulty. - Zakat Administrators who facilitate charity work that are poor and needy themselves. - Those whose hearts are to be reconciled, meaning new Muslim reverts and friends of the Muslim community. - Those in bondage (slaves and captives) - Those who are in Debt - In the cause of Allah. - The Wayfarer, meaning those who are stranded or travelling with few resources.