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  • Zakat Calculation – Illustration For Year 1, Year 2

    Posted by Amir Rehman on April 11, 2021 at 8:54 am

    Sir, Based on my review and understanding I would like to share an illustrative case study to confirm the guidance on the zakat related to produce and wealth. My confusion is on the following matters:

    1. Assuming this is Year 1 of my job and I have just matured with nil assets before my first job as a salaried individual. Say my annual salary is $100,000. Also, my personal use expenses on rent, family, etc are $60,000. Leaving me with a net saving of $40,000 after the first year (net of nisab). Since I have no assets, I will pay 10% zakat on my salary less direct personal expenses ie 10% of 40,000= $4,000. Is this correct or should it be $10,000?

    2. In Year 2, assume no change in circumstances, my assets or net savings are $36,000 after paying Year 1 zakat. On top I have earned $100,000 of salary and direct use expenses of $70,000 in Year 2. Now my zakat calculation is 2.5% of $36,000 of assets and 10% of $30,000 of Year 2 earnings.

    Please review and confirm my understanding.

    Thx

    Amir

    Faisal Haroon replied 2 years, 10 months ago 2 Members · 1 Reply
  • 1 Reply
  • Zakat Calculation – Illustration For Year 1, Year 2

    Faisal Haroon updated 2 years, 10 months ago 2 Members · 1 Reply
  • Faisal Haroon

    Moderator April 11, 2021 at 1:28 pm

    You’re confusing multiple things. Your zakat due in Year 1 will be $10,000 on earnings and no zakat on assets. In Year 2 your zakat will be $10,000 on earnings plus $1650 on assets of $66,000.

    I strongly encourage you to use our Zakat Calculator and plugin the numbers as explained. When you reach the end, it will generate a statement showing you exactly what percentage is applied to what and how much you owe. This will be a great way to learn as well.

    View Zakat Calculator

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