Zakat: The Pillar of Purifying Wealth

1

What zakat is

Zakat is an annual obligation on accumulated wealth — one of the five pillars of Islam. It is not charity in the voluntary sense (that's sadaqah); it is a defined duty, typically 2.5% of qualifying wealth held above a threshold for a full lunar year.

2

Nisab and haul

Two conditions trigger the obligation:

Nisab — the minimum wealth threshold, historically pegged to the value of 85 grams of gold (a monetary value that changes with the gold price; Malaysian state zakat bodies publish the current figure regularly).

Haul — the wealth must be held for one full lunar year.

Qualifying wealth commonly includes savings, gold and silver, business assets, and investment holdings — with calculation details varying by category and by state authority.

1

Nisab — the thresholdWealth above the 85g-gold benchmark value.

2

Haul — the durationHeld for one full lunar year.

3

Rate — the obligation2.5% of qualifying wealth becomes due.

Zakatable wealth above nisab (RM)

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estimated zakat at 2.5% — confirm with your state authority

3

How it works in Malaysia

Zakat in Malaysia is administered at state level — each state's authority (e.g. PPZ-MAIWP for the Federal Territories, LZS for Selangor) sets current nisab values and collects zakat, and payments are eligible for tax rebate treatment. Because thresholds and methods differ slightly by state, the working rule is: estimate with a calculator, confirm with your state authority. Our Zakat Calculator is built exactly for that first step.

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Quick check

1. The standard zakat rate on qualifying savings is:

2.5% of qualifying wealth held above nisab for a full lunar year.

2. Nisab is historically pegged to the value of:

The gold-based benchmark means the ringgit value of nisab moves with the gold price.

3. In Malaysia, the authoritative source for your current nisab value is:

Zakat is state-administered in Malaysia; calculators estimate, the state authority's figures govern.

📚 Sources & References

Quran, At-Tawbah 9:103

Take from their wealth a charity to purify them — the purification purpose of zakat.

Quran, At-Tawbah 9:60

The eight categories (asnaf) of zakat recipients.

Quran, Al-Baqarah 2:43

Establish prayer and give zakat — zakat as a pillar.

Classical fiqh consensus on nisab

The 85g gold benchmark for the nisab threshold, applied by Malaysian zakat authorities.

State zakat authorities (e.g. PPZ-MAIWP, LZS)

Official bodies publishing current nisab values and collecting zakat in each state.

References are provided for educational context. For religious rulings on your personal situation, consult qualified scholars and your state religious authority.

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