Zakat is one of the five pillars of Islam and is an obligation for every able-bodied Muslim. Zakat means cleaning up our wealth by giving a part of it to those who deserve it. Zakat is also one of the ways to get closer to Allah SWT and get blessings in this life and the hereafter.
Income zakat is zakat issued from the monthly or annual income of an individual or company. Income zakat is obligatory if certain conditions are met such as achieving nisab, haul and zakat rates.
To pay zakat on monthly income, we need to know a few things:
#1. Nisab zakat income: Nisab is the minimum limit of wealth that must be owned before zakat is imposed. Nisab for income zakat is determined based on the value of 85 grams of gold or 595 grams of silver. The nisab value can change according to the current market price of gold and silver. We can refer to the website of each state's zakat collection center to find out the latest nisab value.
#2. Haul zakat income: Haul is the period of time that must be passed before a person is eligible to pay zakat. Haul for income zakat is one hijrah year or 354 days. This means that we need to have income or savings in excess of nisab for one year of hijrah before paying zakat.
#3. Income zakat rate: The income zakat payment rate is 2.5% of the total gross income or net income. It depends on the method used in calculating income zakat. The no deduction method means we subtract 2.5% from the total income regardless of expenses or debt. The subtraction method means that we subtract 2.5% from the total income after deducting certain expenses or debts.
#4. How to calculate income zakat: How to calculate income zakat can be done manually or using a zakat calculator that can be found online on the pay zakat website. For example, if we use the no deduction method and have a monthly income of RM5000, then we need to pay RM125 (5000 x 0.025) every month as income zakat. This is because our income has already exceeded the nisab, because RM5000 x 12 months = RM60,000. For the period from January to June 2024, the nisab is as much as RM24,007 so of course the annual income of a person earning RM5000 a month is more than the nisab.
#5. How to pay zakat income: Payment of income zakat can be made in cash, check, online or salary deduction. We can choose to pay zakat every month, every quarter, every six months or once a year according to our ability and comfort.
By knowing how to pay zakat on monthly income, we can fulfill our obligations as Muslims and contribute to the development of the community and the country. May Allah SWT bless our wealth and give us success in this world and the hereafter.
