Zakat on Gold - Its Eligibility and How to Calculate it?

Among the five pillars of Islam, Zakat occupies the central position. It is an obligatory form of charity that every Muslim with wealth equal to or above the set Nisab has to pay. Remember that if eligible people do not pay Zakat, they are committing a major sin.

The Prophet of Allah (Peace Be Upon Him) said, “Whoever is made wealthy by Allah and does not pay the Zakat of his wealth, then on the Day of Resurrection his wealth will be made like a bald-headed poisonous male snake with two black spots over the eyes. The snake will encircle his neck and bite his cheeks and say, 'I am your wealth, I am your treasure.” (Sahih al-Bukhari 1403). It clearly showcases the value of paying Zakat in Islam.

This article highlights the eligibility criteria for Zakat and the process of calculating Zakat on Gold. So, let’s start learning about Zakat here:

What is Zakat?

Zakat is a mandatory act of charity that every deserving muslims needs to pay. This form of charity not only helps poor people, but it also purifies your wealth and soul. The amount of Zakat is calculated as 2.5% of the total wealth every individual owns under the set Nisab.

Who is Eligible for Zakat?

Before going to calculate and pay Zakat, everyone must be aware of its eligibility criteria. Most Muslims get overwhelmed by the rules and criteria of paying Zakat. Here we come with the detailed explanation about who is eligible to receive Zakat. Allah (SWT) mentioned in the Holy Qur’an, “Alms-tax is only for the poor and the needy, for those employed to administer it, for those whose hearts are attracted ˹to the faith˺, for ˹freeing˺ slaves, for those in debt, for Allah’s cause, and for ˹needy˺ travelers. ˹This is˺ an obligation from Allah. And Allah is All-Knowing, All-Wise.” (Quran, 9:60).

It indicates that Zakat can only be given to specific categories of people, including;

> Al Fuqara: It includes poor people with little to no income who cannot meet their basic living essentials, including meals and clothing.

> Al Masakin: It includes people with little or low income who do not have enough wealth to cover their basic living expenses.

> Zakat Administrators: It includes people who work as staff Zakat collectors and distributors who distribute Zakat fairly to the eligible people.

> People with Reconciled Heart: It includes people who are new to Islam or are about to convert to Islam and are looking for financial support.

> People who are in Slavery: It includes people who are in serious subjugation or slavery. You can pay Zakat to make them free.

> People in Debt: It includes people who are under permissible debts and do not have enough resources to repay them.

> Fi Sabilillah: It means that you can offer Zakat to people who are struggling and fighting purely for the sake of Allah.

> The Wayfarer: It means that you can pay Zakat to the stranded travelers who are running out of money and cannot return home, even if they are rich back home.

Who Needs to Pay Zakat?

Unlike simple Sadqah and Fitra, Zakat is a different form of charity that is not required by every Muslim to pay. It is required to pay only when certain conditions are met. People who fall under the given criteria need to pay Zakat:

1. The givers must be muslim
2. They must be adults and sane
3. They must have complete possession of their wealth
4. Their total zakatable wealth must be equal to or above the set Nisab, which is equal to the value of 87.48 grams of gold and 612.36 grams of silver.
5. Their wealth must remain equal to or above the nisab for one lunar or Islamic month
6. If they are in debt, their wealth must still be above after deducting the immediate debt.

How to Calculate Zakat on Gold?

Calculating Zakat has become an easy phenomenon. Every muslims should learn how to calculate Zakat, as it helps them pay the exact amount required to pay as Zakat. Follow the given simple steps to calculate your Zakat:

1. Weight Your Gold: Calculate the final weight of gold you have in your possession.
2. Check the Current Gold Price: Check out the current market price of gold per tola in your region.
3. Calculate Total Value: Now, calculate the total amount by multiplying the total grams by the current price per gram of gold.
4. Pay 2.5%: Now, pay 2.5% of the total amount you calculated. Below is the formula to get 2.5% of the amount: total gold value x 0.025 = zakat due

Give your Donations to the Renal Care Foundation (RCF)

Renal Care Foundation (RCF) is a non-profit organization providing life-saving dialysis treatment for free of cost. RCF is serving in the major cities of the country - Lahore, Gujranwala, Faisalabad, and Fateh Jang. We get your donations to provide every facility required to take care of the patients suffering from chronic renal failure. You can give your donations online to support deserving people who cannot afford the expensive treatment of dialysis.

Frequently Asked Questions

Can I give Zakat in Ramadan?

Muslims who meet the nisab threshold can offer Zakat anytime throughout the lunar or Islamic year. However, most people pay it during Ramadan to get more Barakah and support needy people, as it can help them get more blessings in Ramadan and on Eid.

On what belongings is Zakat not due?

Zakat is not due on some personal belongings, including the home, furniture, car, and clothing, unless you do not own them for business purposes.

When is Ramadan in 2026?

In 2026, the Holy month of Ramadan is started from 19 February.

In which areas is RCF operational?

RCF has its centers in 4 major cities of Pakistan, including Lahore, Gujranwala, Faisalabad, and Fateh Jang.