Types of Zakat and Their Regulations

Zakat is one of the pillars of Islam that must be fulfilled by every capable Muslim as a form of care for others. This obligation is not only an act of worship but also helps maintain economic balance and social well-being. Unfortunately, many of us still do not fully understand the different types of zakat and their regulations. To ensure proper fulfillment, read the complete explanation in this article!

Understanding What Zakat Is

Zakat is the fourth pillar of Islam and is considered one of the fundamental obligations for every financially capable Muslim.

In several verses of the Qur’an, zakat is frequently mentioned alongside the command to perform prayer. One example is in Surah Al-Baqarah (2:43), which states:

"And establish prayer, give zakat, and bow with those who bow [in worship]."

The pairing of zakat with prayer highlights its significant role in Islam. While prayer (salah) strengthens one’s relationship with Allah (habluminallah), zakat serves as a means to build good relations with fellow human beings (habluminannas).

From a legal perspective, zakat is obligatory for every Muslim who meets certain conditions. According to BAZNAS, the requirements for wealth to be subject to zakat include:

1. The wealth must be lawful and acquired through permissible means.

2. The wealth must be fully owned and usable by the owner.

3. The wealth must reach the nisab (minimum threshold) as prescribed for its type.

4. The wealth must have completed one haul (one full lunar year in possession).

5. The owner should not have short-term debts that, when deducted, reduce the wealth below the nisab threshold.

6. The wealth must have the potential to grow, such as gold, silver, trade assets, and agricultural produce.

   
   

Benefits of Fulfilling Zakat

Etymologically, the word zakat (زَكَاةٌ) originates from Arabic, meaning "pure," "clean," "growth," or "blessing." This meaning reflects that zakat not only purifies one’s wealth but also cleanses the soul from greed and brings blessings to those who fulfill it.

As mentioned earlier, here are the complete benefits of paying zakat:

1. Zakat cleanses wealth from the rights of others and purifies the soul from miserliness and excessive attachment to worldly possessions. (QS. At-Taubah: 103)

2. By redistributing wealth to those in need, zakat helps minimize social disparities and promotes the welfare of the community. (QS. Al-Hasyr: 7)

3. Giving zakat does not reduce wealth; instead, Allah promises even greater rewards and prosperity. (HR. Muslim)

4. Paying zakat fosters sincerity, selflessness, and a sense of compassion toward others. (HR. Bukhari & Muslim)

5. Zakat serves as a form of gratitude for Allah’s blessings and safeguards believers from punishment on the Day of Judgment. (QS. Ibrahim: 7)

   
   

Types of Zakat

In Islam, zakat is generally divided into two types: Zakat Fitrah and Zakat Maal. Below is an explanation of each type.

1. Zakat Fitrah

Zakat Fitrah is a mandatory charity that every Muslim must give before Eid al-Fitr as a form of self-purification after observing the Ramadan fast. Besides being an act of obedience to Allah (SWT), Zakat Fitrah also aims to support the less fortunate so they can celebrate Eid with dignity.

Zakat Fitrah is obligatory for every Muslim, regardless of gender or age, including adults, children, and even newborns born before sunset on the night of Eid al-Fitr. The head of the household is responsible for paying Zakat Fitrah on behalf of their dependents, including children and elderly family members who are unable to pay it themselves.

In principle, Zakat Fitrah can be given as early as the beginning of Ramadan and no later than before the Eid al-Fitr prayer. However, the most recommended time to pay Zakat Fitrah is:

• After sunset on the last day of Ramadan until the Fajr prayer on Eid al-Fitr.

• After the Fajr prayer on Eid al-Fitr until the Khatib (preacher) ascends the pulpit for the Eid sermon.

Zakat Fitrah must be given in the form of staple food commonly consumed in the local community, such as rice, wheat, or dates. The required amount is one sha’, which is approximately 2.5–3 kg of staple food per person.

In certain situations, some scholars allow Zakat Fitrah to be given in the form of money, equivalent to the value of the required staple food.

2. Zakat Mal

Zakat Mal is a form of zakat imposed on specific types of wealth owned by a Muslim that has reached the nisab (the minimum threshold for zakat eligibility) and has been held for one full Hijri year (haul).

The purpose of Zakat Mal is to purify one’s wealth and ensure the fair distribution of economic resources, preventing wealth from accumulating solely among certain groups.

This type of zakat must be paid once the wealth has been in possession for one full Hijri year, except for agricultural produce, mining goods, and treasure troves (rikaz), which require immediate zakat payment.

Since Zakat Mal applies to different types of wealth, it is further categorized into several types, as outlined below:

• Zakat on Gold, Silver, and Precious Metals

  This type of zakat applies to gold, silver, and other precious metals that have reached the nisab (minimum threshold) and haul (ownership period of one Hijri year). The nisab for gold is 85 grams of pure gold, meanwhile The nisab for silver is 595 grams of pure silver. If the total amount reaches the nisab and has been owned for one full Hijri year, then 2.5% of the total wealth must be given as zakat.

• Income Zakat (Professional Zakat)

  This type of zakat applies to a person's income or salary, whether from employment, professional work, or self-employment.he nisab is calculated based on the value of gold, which is 85 grams of gold per year or approximately 7 grams per month.

  If the net income (after deducting basic necessities) reaches the nisab, then 2.5% of the income must be given as zakat.

• Trade Zakat (Business Zakat)

  This type of zakat applies to business owners or traders who have assets in the form of merchandise. The nisab for trade zakat is calculated based on the value of 85 grams of gold, The zakat rate is 2.5% of the total trade assets after deducting debts and operational costs.

• Agricultural, Plantation, and Forestry Zakat

  Agricultural zakat is applied to harvested crops that reach the nisab of 653 kg of unhusked rice (gabah) or 520 kg of rice. If the crops are watered naturally by rain or natural water sources, the zakat rate is 10% of the total harvest. If artificial irrigation is used, the zakat rate is 5% of the total harvest.

• Livestock Zakat

  This zakat applies to livestock such as cattle, goats, and camels that have reached the nisab and are freely grazed.

  For example, the nisab for goats is 40 animals, with a zakat obligation of one goat if owned for one full year.

• Investment and Stock Zakat

  Investment and stock zakat applies if the total assets reach the nisab based on the value of gold. The amount to be paid is 2.5% of the net profit or the market value of the owned stocks after deducting other financial obligations.

• Mining Goods Zakat

  Wealth obtained from mining, such as petroleum, gold, or coal, is subject to 2.5% zakat if it is processed by an individual or a company.

• Rikaz

Rikaz refers to buried treasure or discovered wealth. This type of zakat mal does not require a haul (a specific holding period) or nisab (a minimum amount to be subject to zakat). The applicable zakat rate for rikaz is 20% of the total discovered wealth.

After understanding the different types of zakat and their requirements, Sahabat Labamu will surely realize that managing personal finances is just as important as managing business finances.

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