Suppose you have saved 800 pounds over the year in your money box. Islam teaches that a small, fixed share of savings like this — just 2.5%, which is 20 pounds — belongs to those in need. This yearly giving is called zakat, and it is one of the five pillars of Islam.
What is zakat?
Zakat is an obligation (a duty) for Muslims whose savings pass a threshold. Three conditions matter:
- 2.5% — the rate on qualifying savings and wealth.
- Nisab — a minimum threshold. If your savings are below the nisab, no zakat is due.
- A lunar year — the wealth must have been held for one full Islamic (lunar) year.
The 2.5% sum, made simple
2.5% means 2.5 for every 100, or one fortieth. An easy method: divide by 40, or find 1% and multiply by 2.5.
| Qualifying savings | Zakat (2.5%) |
|---|---|
| £400 | £10 |
| £800 | £20 |
| £1,000 | £25 |
| £2,000 | £50 |
Check the 800 pounds row: 800 divided by 40 = 20 pounds. Or 1% of 800 = 8, and 8 times 2.5 = 20 pounds. Both give the same answer.
Who can receive zakat?
The Qur'an lists eight categories of people who may receive zakat. Broadly, these include the poor, those in need, people struggling with debt, travellers stranded far from home, and others in difficulty. The aim is to move wealth towards those who need it most.
Zakat vs sadaqah
| Zakat | Sadaqah | |
|---|---|---|
| Type | Obligatory (a duty) | Voluntary |
| Amount | Fixed 2.5% | Any amount |
| When | Yearly, above nisab | Any time |
Sadaqah is any voluntary act of giving — even a smile or helping a neighbour counts. It can be given any time, in any amount. Giving purifies wealth, softens the heart, and strengthens the whole community.