Friday, 30 October 2009

Zakat - have you paid its due?

Zakat Income:
2.5% of (All the income minus allowable deduction)

Allowable deduction among others:
- personal deduction of 85gram of gold price
- money given to parents
- basic expenditure for wife (if not working) and childrens;
- pension fund contribution (KWSP)

Assuming price of 1 gram gold is RM94, therefore:
85gram of gold is = RM94 x 85 = RM8000

Allowable deduction:
- wife (housewife) - RM3000 / year (if wife is working she need to calculate and pay Zakat seperately)
- 1 children RM1000 / year
- Parents (e.g RM200/month) - RM200 x 12 = RM2400 / year
- KWSP e.g. RM2000 / year

Let say if you have 2 childrens and your wife is not working, total allowable deduction is:
RM8000 + RM3000 + RM(1000x2) + RM2400 + RM2000 = RM17,400

Now, let us see about your income.
Considering your salary is RM2000/month, special night shift allowances RM500/month, annual bonus is RM2000,
and you have income from apartment rent out of RM500/month.

Total Annual Income is:
Salary + Allowances + Other income i.e Rent (RM2000+RM500+RM500) x 12= RM36000, Bonus = RM2000
Total = RM36000 + RM2000 = RM38,000

Therefore, chargeable Annual Zakat Income is (Total income (minus) Allowable deduction) x 2.5%,
(RM38000 - RM17400) x 2.5% = RM20600 x 2.5% = RM515

You have to pay RM515 annually as your Zakat Income.


But, wait a moment. How about your Zakat Savings and Zakat Gold? What about Zakat from your Shares, Zakat
on your Business?

Zakat is one of the 5 pilliars of Islam. Therefore, it is mandatory for every muslim to have the knowledge about it.
The least is to know the type of the Zakat and to pay it at its due.


Zakat Savings:
When the haul of 1 year is reached, as long as the minimum amount of saving for that haul is more than 85gram
gold price (i.e. RM8000), then 2.5% of it is the Zakat Savings.

e.g. Minimum total savings for that year which reached 1 year haul is RM20,000. Therefore:
Zakat Savings = RM20,000 x 2.5% = RM500


Zakat Gold:
As long as total gold in possession which already reached 1 year haul whether it is being worn or not is more
than 85gram (some difference of oppinion exist regarding this matter), 2.5% of it is the Zakat Gold.

e.g. Your wife have gold worth 150 gram which reached the 1 year haul:
150 gram x RM94 = RM14,100
Zakat Gold = RM14100 x 2.5% = RM352.5


Zakat Fitrah (youself, your wife and your 2 childrens) = RM7 x 4 = RM28


Generally, medium income person will fall under all these Zakat payable category:
Zakaty Income---RM 515.0
Zakat Savings----RM 500.0
Zakat Gold--------RM 352.5
Zakat Fitrah-------RM 28.0
------------------------RM1395.5

Therefore, total Zakat that is to be paid is RM 1395.5 for that year.


For detail information and Quranic and Hadith sources of Zakat, kindly seek the knowledge of Zakat among
others here:

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