What is the Nisab of Zakat?

Zakat is one of the five pillars of Islam, representing a compulsory act of charity for eligible Muslims. The Nisab is the minimum amount of wealth a Muslim must possess before they are obligated to pay Zakat. It ensures that only those who have a surplus of wealth contribute, while those below the threshold are exempt. According to Islamic law, the Nisab is equivalent to 2.5% of a Muslim’s qualifying wealth, which includes savings, business assets, gold, silver, and other valuables that have been held for a full lunar year (Hawl).

The concept of Nisab serves multiple purposes. Firstly, it establishes fairness by ensuring that Zakat is paid only when a person has sufficient resources, preventing undue hardship. Secondly, it acts as a socio-economic mechanism, redistributing wealth to help the poor, needy, and other eligible recipients mentioned in the Qur’an (Surah At-Tawbah, 9:60). This strengthens the social fabric and reduces economic inequality within the community.

The calculation of Zakat is straightforward. For example, if a Muslim owns 100,000 PKR in eligible assets, the Nisab is reached, and 2.5% of this amount—2,500 PKR—must be given as Zakat. Gold and silver have specific Nisab values, traditionally calculated based on their weight and current market price. The act of giving Zakat purifies one’s wealth, reminds believers of Allah’s blessings, and cultivates compassion for those less fortunate.