What is Zakat ul-Mal?
Zakat ul-Mal is an obligatory charity in Islam, required of all financially able Muslims who meet the Nisab (minimum threshold). It purifies one’s wealth and supports those in need. Allah commands in the Qur’an:
“Take from their wealth a charity by which you purify them and cause them to increase.” (Surah At-Tawbah 9:103)
Zakat must be distributed to the eight categories mentioned in Surah At-Tawbah (9:60):
1. The poor
2. The needy
3. Those employed to collect Zakat
4. Those whose hearts are to be reconciled
5. To free captives
6. Those in debt
7. In the cause of Allah
8. The stranded traveler
Zakat Amounts:
– Australia: The Nisab is calculated based on 85 grams of gold or 595 grams of silver. As of recent updates, the Zakat amount varies with gold and silver prices but is approximately $6000 AUD in wealth before Zakat is due.
– New Zealand: The threshold is similar, approximately $6500 NZD depending on gold and silver prices. Muslims are required to donate 2.5% of their total savings and assets annually if they meet the Nisab.