Eligibility — Who Must Pay Zakat and Understanding Nisab
By the end of this module, you will be able to:
- 1List the conditions that make Zakat obligatory on a person
- 2Define Nisab and explain the two common standards used to set it
- 3Explain the role of Hawl (one lunar year of ownership) in Zakat calculation
Who must pay Zakat
Zakat becomes obligatory on a person when all of the following conditions are met. Flip each card to reveal the condition.
Children's wealth and Zakat on it is a point where scholars hold different views. Some schools of thought say a guardian should pay Zakat on a child's qualifying wealth; others say it only becomes due once the child reaches adulthood. This course flags such differences so learners know to check with a qualified scholar for their own situation.
What is Nisab?
Nisab is the minimum amount of wealth a person must own before Zakat becomes due. If your qualifying wealth is below the Nisab, you do not owe Zakat that year. There are two traditional standards for setting the Nisab — compare them below.
Set at the value of 87.48 grams of gold. Because gold is worth more, this gives a higher Nisab figure — fewer people meet the threshold.
Set at the value of 612.36 grams of silver. Because silver is worth less, this gives a lower Nisab figure — more people meet the threshold and more Zakat is likely to be collected and distributed. Many scholars today recommend this standard for cash and mixed wealth, precisely because it benefits the poor more.
Gold and silver Zakat calculators, including many used by UK Islamic organisations, publish updated Nisab values regularly because metal prices change daily.
If the current silver price is £0.50 per gram, the Nisab using the silver standard would be roughly 612.36 x £0.50 = £306.18. A person whose total qualifying wealth is £306.18 or more on their Zakat calculation date would need to pay Zakat.
What is Hawl?
Hawl means the wealth must stay at or above the Nisab for one full Islamic (lunar) year, which is about eleven days shorter than the standard Gregorian year. Many people choose a fixed date each year, often the first day of Ramadan, to make their annual calculation. This is a good habit because it turns Zakat into a predictable, recurring task rather than a rushed, last-minute one.
If wealth drops below Nisab at any point during the year and then rises again, most scholars say the Hawl restarts from the point it rose back above Nisab. This is one reason it helps to check your wealth level at least once during the year, not only at the final calculation date.
Some people believe Zakat is only due on savings, not on cash sitting in a current account. In fact, any qualifying wealth held above Nisab for a full lunar year is Zakatable, whether it sits in a savings account, a current account, or cash at home.