How to Calculate Zakat

Watch How to Calculate Zakat


Ramadan is a time where many among us fulfill our obligations of Zakat, on our wealth (one of the five pillars of Islam) and also the small-Eid-time Zakat-ul-Fitr charity. This year again, for more than seven consecutive years, we will Insha-Allah be collecting and distributing your Zakat and Zakat-ul-Fitr on your behalf.

Zakat one of 5 pillars of Islam: On one hand Zakat is one of the five pillars of Islam, an absolutely important obligation upon every Muslim who owned money (or gold/silver) above a minimum savings threshold (Nisab) amount, for an entire lunar year without using it. Such a person is required to give 2.5% (i.e. give two dollars and half in every hundred dollars saved for a year if it is above the minimum Nisab amount).

Zakat 8 Types of Valid Recipients: Zakat is strictly only allowed to be given to one of the eight categories of people mentioned in the Qur’an in Surah Tawbah (Surah 9) verses sixty. Giving Zakat to anyone else besides this is not counted as having fulfilled the obligation, hence the importance to ascertain before giving Zakat that it is for one of these eight categories only. We at AMYN Care (previously AMYN and Sunnah Inspirations along with HikmahWay Institute) are one of the bodies that collect Zakat, as did people from the time of Prophet’s (pbuh) time, and then distribute it to one of the eight categories of valid recipients of Zakat after ensuring their genuineness.

Below is a list of the only Eight categories that Allah mentioned in Qur’an (Surah 9:60) and allowed for us to give Zakat of our Wealth (Maal) to:

One: Very Poor (Who do not even have half of their & dependents’ needs)

Two: Needy (Who have some means upto half of their needs but not all their needs)

Three: Collectors & Distributors of Zakat for their efforts as a wage

Four: Those whose hearts are to be inclined towards Allah and Islam (tribal leaders, etc)

Five: To free enslaved captives of war

Six: Those heavily in debt after a calamity or efforts to make peace

Seven: Those unpaid who are out in Allah’s path (to protect the Muslim nation in a legitimate legal Islamic manner). Scholars such as Sh Ibn Baz and others said that in today’s time the scholars and their Islamic Centers/Dawah-Educational-Efforts to spread the knowledge of Islam and piety (which is the purpose of a Muslim nation & protecting it) they are also included in this category seven of those eligible to receive Zakat.

Eight: Traveler who is stranded without monetary means required to return home.

Additional Important Points about Zakat Recipients:

(A) Though Islam encourages to give charity to Muslims and non-Muslims alike, scholars mentioned based on the Qur’an and Hadith, that the Zakat is taken only from Muslims and hence given only to them whereas general charity may be taken from Muslims and non-Muslims alike and given to both.

(B) Moreover, it is required to first give Zakat to the local (one of 8 categories of valid zakat recipients from locals) from whom it is collected before sending it to others elsewhere, unless if there is a dire necessity elsewhere.

The Verse in Qur’an stating the 8 Zakat Recipient Categories:

إِنَّمَا الصَّدَقَاتُ لِلْفُقَرَاءِ وَالْمَسَاكِينِ وَالْعَامِلِينَ عَلَيْهَا وَالْمُؤَلَّفَةِ قُلُوبُهُمْ وَفِي الرِّقَابِ وَالْغَارِمِينَ وَفِي سَبِيلِ اللَّـهِ وَابْنِ السَّبِيلِ ۖ فَرِيضَةً مِّنَ اللَّـهِ ۗ وَاللَّـهُ عَلِيمٌ حَكِيمٌ 

“Zakah expenditures are ONLY for the poor and for the needy and for those employed to collect [zakah] and for bringing hearts together [for Islam] and for freeing captives [slaves] and for those in debt and for [those in] the path of Allah and for the [stranded] traveler – an obligation [imposed] by Allah. And Allah is Knowing and Wise.” [Qur’an – Surah Tawbah 9:60]

Ramadan is for even extra charity & goodness as much as we wish: Abdullah ibn Abbas (R) reported: “The Messenger of Allah (S) was the most generous of men; and he was the most (good and) generous during the month of Ramadan when Jibreel visited him every night and recited the Qur’an to him. During this period, the Messenger of Allah (S) was nicer (and more generous & beneficent) than even the winds (flowing freely bringing much needed clouds and rain to desperate farmers).”

How AMYN Care Distributes your Zakat: You can delegate your zakat to us to distribute it to one or more of the above eight valid categories of zakat recipients, as mentioned the Qur’anic verse above. Please note that we tend to give zakat as first priority to the most needed (as taught in the Qur’an & Sunnah) of the above eight categories who are LOCALS (as preferred in Fiqh), then the next most needed, and so on; and as judged by one or more of our scholar/s judgement in accordance with the verse above and rest of religious jurisprudence literature of the great scholars of all time of Islam. As such we tend to give zakat as first priority to category one, two and seven, in this order and then to whichever is most needed out of categories eight, six and four in this order as next priority. Though category three is allowed, we have so far never felt a need to allocate zakat to it.

Indeed the ones we give Zakat to are those categories that need it very much.

Disclaimer: We strictly take measures to ensure that the Zakat and Zakat ul Fitr that we distribute are fully legal according to the laws of our country as well as permissible in the religion of Islam, and never otherwise.

Where to Give Zakat

To Give Your Zakat to AMYN Care to collect and distribute according to guidance of Islam and its jurisprudence (fiqh), please give it at the (https protocol secure) online payment area below here on this web page or directly deposit it into the Zakat bank account in name of one of our parent organisation’s (Sunnah Inspirations Inc.) following Zakat bank account:

Bank: Westpac Bank
Account Name: Sunnah Inspirations Inc.
BSB: 034093
Account Number: 475667
Swift Code (for overseas transfers): WPACAU2S


Zakat of Wealth

This is the zakat you pay for zakat approved wealth that stay with you for one year and the wealth is above the current threshold.

Amount: $