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  • Zakat On Salary

    Posted by Ahmad Shoaib on April 12, 2021 at 11:34 am

    I just heard a scholar say that zakat on salary is to be done as soon as the salary is received. I’m not sure if I understood wrong but does that mean if I get a monthly salary I have to give zakat on it throughout the whole year every month?

    Also salary is usually just converted to wealth almost instantly as it is put into the bank so wouldn’t it be paid with 2.5% at the day you have chosen for zakah?

    What about production? Because the profits from those are also converted to wealth?

    Ahmad Shoaib replied 2 years, 10 months ago 2 Members · 8 Replies
  • 8 Replies
  • Zakat On Salary

    Ahmad Shoaib updated 2 years, 10 months ago 2 Members · 8 Replies
  • Faisal Haroon

    Moderator April 12, 2021 at 2:01 pm

    Every time you have production (salary is also considered production), zakat becomes due on it right at that time. In case of crops it’s after you have harvested the crops, and in case of salary it’s when you receive the money. Depending upon whether the production was done with labor or effort or both, the zakat due is 5% or 10% of the production.

    Zakat on assets is due once per year. This is 2.5% of all your savings.

    Of course I have summarized it here. Please see our Zakat Calculator and related FAQ which explains everything in detail. Playing with the calculator is also a great way to learn the sharia of zakat.

    View Zakat Calculator

    • Ahmad Shoaib

      Contributor April 12, 2021 at 2:21 pm

      Just to make it excruciatingly clear- there is no nisaab on a production and zakat is to be paid as soon as it is earned? What if the salary is spent before zakat is paid on it? Are we not allowed to spend income before we give zakat?

    • Faisal Haroon

      Moderator April 12, 2021 at 3:56 pm

      On salary the nisab is determined by the state as the minimum earning below which it exempts taxes.

      Zakat becomes due at the time of earning. A lot of people keep an account of it and pay it once a year which is also an acceptable ijtihad.

    • Ahmad Shoaib

      Contributor April 12, 2021 at 4:00 pm

      This is from gov.uk:

      ‘The standard Personal Allowance is £12,570, which is the amount of income you do not have to pay tax on. Your Personal Allowance may be bigger if you claim Marriage Allowance or Blind Person’s Allowance. It’s smaller if your income is over £100,000.’

      So unless some earns more than £12,570 a year, zakat is not applicable on them? Or is there an Islamic nisaab available otherwise?

    • Faisal Haroon

      Moderator April 12, 2021 at 4:11 pm

      I’m not an expert in U.K. tax laws but it seems that personal allowance is something different than the minimum earning below which there’s no tax on earnings. We have such a concept in the U.S. and I know that it also exists in Pakistan. You might want to look up tax brackets or slabs.

    • Ahmad Shoaib

      Contributor April 12, 2021 at 4:15 pm

      It seems personal allowance is just the term for when there is no tax on the salary. So if one does not earn this much (when one extrapolates his salary from monthly to yearly), there is no tax on him. Is there any zakat? Because the government uses tax for many things not just on the heads of zakat?

    • Faisal Haroon

      Moderator April 12, 2021 at 4:19 pm

      Ok then this might be it. No there’s no zakat on your earnings if you do not meet the nisab, evidently £12,570 in this case.

    • Ahmad Shoaib

      Contributor April 12, 2021 at 4:19 pm

      Ok thank you

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