Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

Dear Brother Burhan,

Assalamualaikum,

May Allah Reward you for this Humble work.. I have a query on Zakat Calculation, im a salaried person and my salary has been increased twice this year Alhamdulillah, Im unable to calculate the Zakat on my salary, please look in the below details and Advice me for the same at the earliest. Can i give my Zakat to diff persons like Zakat Amnt 5000/- ( 5 Peoples x 1000/-each).

Sep Months salary is still pending, i included this because Eid is on 2nd Oct.

I have a personal loan from bank EMI is 934/-.

No Savings, No vehicle. 

(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)

Answer:

Zakah of salaried person

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is none worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

If the total net worth of any believer (man, woman, or child) is more than the prescribed ‘nisaab’ of 7.5 ‘tolas’ of gold (app. 85 grams or app. Value US$2,100.00), then the person is liable to pay the obligatory annual ‘zakah’ of 2.5% on their excess wealth which has been in their possession for a full calendar year.

If the total net worth of any believer is less than the prescribed ‘nisaab’, he/she is not liable to pay any ‘zakah’ until their net worth exceeds the prescribed ‘nisaab’.

For the purpose of determining ‘zakah’, the ‘Net Excess Assets’ would be the current market value of all of one’s assets (properties, investments, jewelry, cash, etc.) except:

1. the value of the house/s one owns and actually lives in (no zakah)
2. the value of the car/vehicle one uses on a regular basis (no zakah)
3. the value of the furniture and fixtures one uses on a regular basis (no zakah)

Your Question: …..im a salaried person and my salary has been increased twice this year Alhamdulillah, Im unable to calculate the Zakat on my salary,

Respected brother in Islam, your annual income or salary is absolutely immaterial and irrelevant when calculating ‘zakah’; for ‘zakah’ in Islam is not determined on one’s annual income or salary, but rather on one’s net excess assets which have been in one’s possession for a period of one full lunar calendar year.

If the total net worth of any believer (man, woman, or child) is more than the prescribed ‘nisaab’ of 7.5 ‘tolas’ of gold (app. 85 grams or app. Value US$2,100.00), then the person is liable to pay the obligatory annual ‘zakah’ of 2.5% on their excess wealth which has been in their possession for a full calendar year.

If the total net worth of any believer is less than the prescribed ‘nisaab’, he/she is not liable to pay any ‘zakah’ until their net worth exceeds the prescribed ‘nisaab’.

Lets say one earns US$1-million salary a year, and his total expenditure for the year is also US$1-million; and this person has absolutely no assets (no properties, no investments, no jewelry, no cash savings, etc.). Thus the net excess asset of such a person would in effect be zero; and such a person would not be liable to pay any ‘zakah’; even though he earns as much as US$1-million a year!!!

Thus brother, absolutely regardless of how much you earn a year, your annual income or salary is absolutely irrelevant when determining your annual ‘zakah’. If, as you have stated you have absolutely no savings, and assuming you have no other investments or assets, your net excess assets would in effect be ‘zero’ and you would thus not be liable to pay any ‘zakah’ for this year.

But if after your annual expenditure and your outstanding loans, you are left with an amount; and that amount is more then the prescribed ‘nisaab’ (approximately US$2,100.00), and that amount has been in your possession for a period of one full lunar calendar year….then indeed you would be liable to pay 2.50% of your saved amount as your annual ‘zakah’ for the year.

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me alone. Allah Alone Knows Best and He is the Only Source of Strength.

Your brother and well wisher in Islam,

Burhan