It is mandatory on any adult, sane Muslim with wealth above a certain amount (Nisab). Eligible Muslims pay Zakat once a year, and it is due as soon as one lunar (Islamic) year has passed since meeting or exceeding the Nisab. This obligatory donation is then distributed to those who meet the criteria to receive it.  

The Nisab is the minimum amount of wealth a Muslim must possess before they are required to pay Zakat. This amount is often referred to as the Nisab threshold.

Gold and silver are the two values used to calculate the Nisab threshold. The Nisab was set by the Prophet Muhammad (ﷺ) at a rate equivalent to 87.48 grams of gold and 612.36 grams of silver (or 85 grams of gold and 595 grams of silver, according to another opinion).

However, as gold and silver are not commonly used nowadays, their equivalent value in local currencies often fluctuates. This can make the Nisab threshold different year on year.

It should be paid as soon as possible prior to or at the time that you’ve earned the requisite amount of Nisab each lunar year (hawl), or one year after you last paid it.

TIP: A good way to ensure you make the payment in a timely fashion is to pay it during a time it is easy to remember, such as every Ramadan or the first 10 days of Dhul Hijjah.

This obligatory donation should amount to 2.5% of your total Zakatable wealth. For example, if your total assets (after any debts owed) amounted to $10,000, you would pay $250. 

There are eight categories of people who are eligible to receive Zakat. These include:

• The poor
• The needy
• Administrators of Zakat
• Those whose hearts have been recently reconciled (i.e. Muslim reverts/converts)
• Those who have been enslaved
• Those in debt 
• Those in the cause of God
• Travellers (including refugees).

At Islamic Relief, we take the responsibility of delivering your donations very seriously. We know that we are accountable to you, to the people we serve, and, ultimately, to Allah.

We ensure your Zakat reaches the poor and needy. To relieve them from suffering and provide for their vital needs – for they have a right over us.  

“Those in whose wealth there is a recognised right for the needy and the poor.” 

[Qur’an 70:24-25]  

Yes, you can give Zakat to a relative, but you cannot give it to your immediate family. This includes your spouse, children, and parents i.e. all the descendants and ascendants, if you subscribe to the Hanafi and Hanbali schools of jurisprudence. However, in the Shafi’i and Maliki schools, this may be allowed in some scenarios.

No, it is only obligatory on Muslims. 

No, Zakat al-Mal is due when a person’s (if Muslim, adult and sane) wealth reaches the Nisab amount. It can also be paid anytime during the year.

Zakat al-Fitr, on the other hand, is paid by the head of the household for each member of the family (even children and babies), before the Eid al-Fitr prayer. Other names for it include Eid Fitrana and Sadaqatul Fitr.

For every year that you owe, take 2.5% from the total wealth you had at the end of that year and pay that in Zakat. If you are not sure how much wealth you had, estimate it to the best of your ability.

For example, say you have not paid Zakat since Ramadan 5 years ago. Therefore, you’ll need to work out how much wealth you owned every Ramadan for the last 5 years and pay 2.5% of that.

The general answer would be yes, however, we would strongly urge you to consult a scholar about this.

Zakat is not only a sacred pillar of Islam – it has the power to ease the suffering of millions around the world.  

Picture this: if just the ten richest people in the world paid Zakat – that would be a staggering $14.9 trillion AUD! That amount of money in tackling poverty would be huge. That is the potential of Zakat.