Who is eligible to receive Zakat?
We have received a number of enquiries asking who is eligible to receive Zakat, how to calculate and how much to pay and on what wealth is Zakat due etc. We have furnished below the English translation of the Qur'an sura 9 verse 60 that describes the eight categories of people who are eligible to receive Zakat with a brief explanation via examples. A Zakat calculator is also available to assist you calculate your Zakat dues taking into consideration the Nisab (minimum amount you should have possessed over a twelve month period). Please contact us to receive an electronic copy of the Zakat calculator.
The Zakat for money that you would have had for twelve months is calculated at 2.5%. For anyone who have businesses with stock in trade and merchandise, property owned for investment purposes, agricultural products, livestock and wealth drawn from natural resources such as mines, natural gas, hydro and solar energy etc. the Nisab is variable and you should consult an Islamic scholar to assist you determine your Zakat obligations.
Here are the eight categories.
1. The poor
- Those who have no income
- Those who beg for money
2. The needy
- Those who may have an income but it is below a minimum requirement to cover their basic expenses.
- Those who may not beg but you are aware of their financial difficulties
3. Employees of Zakat
- Those who are employed to handle Zakat
- Those who identify the poor and the needy to receive Zakat
- Those who are considering to enter the fold of Islam
- Those who have become Muslim recently and are in need of money
5. The enslaved
- The people oppressed by invading forces or regimes
- Those who are locked up for their Islamic belief
6. To relieve those in hardship under debt
- A person in debt who is unable to get out of it due to insufficient income
7. The wayfarer
- A traveller who has lost his possessions and is in need
8. For the cause of Allah
- A Muslim army in need
- Islamic institutions in need that is dedicated for the cause of Da'wa
- Islamic institutions in need that teach Qur'an and Hadith
- Islamic institutions involved in charity