Zakah on gold, precious metals, jewelry and gems : Zakah on gold and jewelry and on salaries

Fatawa Question

Assalamoalaikum, I was wondering if you can help me with my Zakaah calculations : (1) I have 32gms of gold saved up which amounts to 41,600 in Pakistani rupees. (2) I also have 46000 rupees of cash saved up from last year. (3) I also have a jewellery set which is not completely gold but has little amount of gold in it, I don’t think that that value of gold is significant in any terms. (4) I have read that Zakah is not due unless you have 85gms of gold saved up or 595gms of silver. If I add the monetary value of the gold that I have plus the cash saved up from last year it equals 87600 in Pakistani rupees and if I add the estimated value of the gold in the set the total would be no more than 95000 in Pakistani rupees which is again less than the amount of 85gms of gold that is the Nisab level of everything totaled. (5) I want to know if I should pay Zakah on this if I am not mistaken about the 85gms of gold thing. And if I should, it would be 2.5 % of the total (i.e. gold + cash) or should I pay separately (i.e. 2.5 % Zakah on gold and separate 2.5 % Zakah on the cash). (6) And one last thing I found this question / answer on a website can you please clarify it and give fatwa based on it all. Question : I have read on a website that the rate of zakat on salary is 10 %, and not 2.5 %. Would you please give references / logic for that ? Response : The logic of 10 % Zakat on salary is that it is like agricultural production. We render/produce our services for which we get salaries every month. We are expected to pay Zakat immediately after we get the reward for our services as the farmer is expected to pay Zakat (Ushr) the same day when he harvests his crop. 2.5 % Zakat is applicable on wealth every year. Our salary is not the additional wealth that we keep over and above our needs. It is what we earn and therefore, in my opinion, needs to be treated as an earning / producing unit. Please answer clearly. May Allah reward you for your work.

Fatwa

Click hereto view more

Publication Date

2007-09-28

Main Subjects

Economics & Business Administration
Islamic Studies

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-786726

• APA
• MLA
• AMA