:: Zakat - Another Project by MUIS ::

:: English :: Malay ::

Zakat on wealth comprises several sub-categories, namely zakat on savings, zakat on gold, zakat on business, zakat on CPF savings and zakat on shares.

Savings is defined as money that is kept in the following forms:

Money at hand;
Savings account;
Current account;
Fixed deposit account;
Insurance (endowment);

Calculations are based on the different types of accounts: single account, multiple account, fixed deposit account and insurance (endowment).

Computation Guide:

Single Account

Unbroken Haul
Nisab = $1500 (example)
1. Haul begins in July.
2. Haul is completed 12 months thereafter based on 355 days – Hijrah calculator.
3. The lowest balance during this period is in April, ie $1700.
4. The zakat payable, is therefore Lowest balance x 2.5% = $1700 x 2.5% = $42.50

Broken Haul
Nisab = $1500 (example)
1. Haul begins in July.
2. In December (a period of five months from July 1994), the total savings fall below the nisab. The haul is therefore broken.
3. Haul begins again in February (the next year).
4. If the haul is not broken in the 12 months that follow, zakat becomes payable in February (the following year) according to the method stated earlier.
5. If the haul is broken in the 12 months that follow, then ascertain the date from which the new haul begins.

Multiple Account
If a person has more than one savings account, then one haul period must be determined. This is done by taking the lowest monthly balance from the three books. See example below:

Quantum of Zakat Payable
- 2.5% on the lowest annual balance of all types of savings, if the lowest balance equals or exceeds the nisab
- 2.5% on the lowest monthly balance of all types of savings if the lowest balance equals or exceeds the nisab.
- 2.5% on the last balance upon completion of haul and nisab. (According to the Hanafi School of Law)

Mr Ahmad has three savings accounts. He intends to pay zakat on his savings. Mr Ahmad’s zakat of 2.5% will be calculated on the lowest of his monthly balances. This amount must be equal to or more than the nisab for the asset and has to complete one haul period.

The table below shows that the lowest amount is in May i.e. $ 5300.

$5300 x 2.5% = $132.50

The table shows an example to highlight the zakat payable.

Period	Account 1	Account 2	Account 3	Total
Jan	$500	$4700	$4500	$9700
Feb	$1500		$5200	$6700
Mar	$2200	$3900		$6100
Apr	$3800		$3400	$7200
May	$5300			$5300
Jun	$4200		$4300	$8500
Jul	$6000	$4200		$10200
Aug	$2300		$3500	$5800
Sep	$5700			$5700
Oct	$1600	$4000		$5600
Nov	$1000		$4800	$5800
Dec	$1200	$4700		$5900