What is Zakat?
Zakat is one of the Five Pillars of Islam and an obligatory form of charity for Muslims who meet the minimum wealth threshold (Nisab). It is set at 2.5% of your total zakatable wealth and is distributed among eligible recipients.
Who Must Pay Zakat?
Zakat is obligatory for every Muslim who:
- Is an adult (has reached puberty)
- Is of sound mind
- Owns wealth above the Nisab threshold
- Has owned that wealth for one full lunar year (Hawl)
What is Nisab?
Nisab is the minimum threshold of wealth that triggers the Zakat obligation. There are two Nisab standards:
- **Gold Nisab:** 87.48 grams of gold
- **Silver Nisab:** 612.36 grams of silver
Most contemporary scholars recommend using the silver Nisab as it is lower and results in more people being obligated to pay Zakat. The approximate PKR value of the silver Nisab in 2024 is around PKR 146,000–150,000.
What Assets are Zakatable?
- **Cash and bank savings** — All cash in hand and bank accounts
- **Gold and silver** — All gold/silver jewelry and coins
- **Business inventory** — Stock and trade goods
- **Investments** — Shares, mutual funds, and similar investments
- **Rental income** — Money received from rental properties
How to Calculate Zakat
Formula: Total Zakatable Assets × 2.5% = Zakat Due
Example:
- Cash: PKR 500,000
- Gold (50g at PKR 21,500/g): PKR 1,075,000
- Business assets: PKR 200,000
- **Total: PKR 1,775,000**
- **Zakat (2.5%): PKR 44,375**
Use Our Free Zakat Calculator
Use our Zakat Calculator to calculate your Zakat instantly with all asset categories.
Who Receives Zakat?
The Quran specifies eight categories of Zakat recipients (Surah At-Tawbah 9:60):
- The poor (Fuqara)
- The needy (Masakeen)
- Zakat administrators
- Those whose hearts need to be reconciled
- Those in bondage
- Debtors
- In the cause of Allah
- Stranded travelers