Calculate & Pay Zakat

As the third pillar of Islam, Zakat is an obligatory giving of alms to the poor. It is an act of worship, not charity, and so it benefits the giver more than the receiver.

In the Islamic faith, the function of Zakat is manifold. It is a means to purify one’s wealth. It is also a means of spiritual purification, allowing the giver to free themselves of greed and attachment to worldly possessions.

And it is a sophisticated system for managing the distribution of surplus wealth and tackling poverty.

Zakat is mandatory on all Muslims whose wealth and/or savings are above a set minimum amount, known as ‘Nisab’. Once your savings reach Nisab (after accounting for yearly living costs/expenses), then Zakat is 2.5% of your wealth that remains, which is then due to the poor.

Assets on which Zakat is payable include:

• Cash (in hand, in a bank account, or lent to others)
• Shares/investments that provide income
• Business Stocks
• Pensions
• Gold and silver (as jewellery and stocks)

Zakat is not payable on assets for personal use such as the home you live in or your car etc.

Nisab is determined through the current value of gold and silver as follows:

The Nisab value in Gold is 3 ounces / 87.48 grams or its cash equivalent
The Nisab value in Silver is 21 ounces / 612.36 grams or its cash equivalent

The preferred Nisab at this time is silver because it maximises Zakat.

Below is an example of how Zakat is calculated on gold and silver.

On Gold:

If the price of gold were £30 a gram, for example, the Nisab would be:

30 x 87.48 = 2,624.40.

So, if you have £2,624.40 or more in wealth/savings you would be eligible to pay Zakat. The amount you’d have to pay is 2.5% of your total wealth (after expenses and provided you have had that amount for a full year). The minimum Zakat payable as per these prices would be £65.61.

On Silver:

If the price of silver were £1 a gram, for example, the Nisab would be:

1 x 612.36 = 612.36.

So, if you have £612.36 or more in wealth/savings you would be eligible to pay Zakat. The amount you’d have to pay is 2.5% of your total wealth (after expenses and provided you have had that amount for a full year.) The minimum Zakat payable as per these prices would be £15.31.

To calculate your Zakat contribution, you must know the accurate price of gold and/or silver today. Alternatively, you can use our Zakat Calculator. It’ll help you work out your Zakat quickly and accurately.

There are eight types of people to whom Zakat can be given:

• The poor (people who have no assets and means to earn a living)
• The needy (people who have no earnings or whose earnings don’t cover their basic needs)
• The wayfarer
• Those employed to administer Zakat funds
• Those whose hearts have been reconciled [to the truth/faith]
• Those in bondage
• Those in debt
• In the cause of Allah (swt)

At Imran Khan Cancer Appeal, we know the importance of giving Zakat and care about transparency, which is why we are very particular about the disbursement of Zakat funds. The Zakat we receive is utilized exclusively for providing direct patient care to poor patients.

Patients who do not qualify for Zakat, but who are still in need of financially supported treatment, are subsidised from our separate Donation Account. Our hospital expenses (including staff salaries), expansion projects, and equipment costs are met through revenue received from our hospital diagnostic services or donations made specifically towards such needs.

Our commitment to transparency is recognised by the Ministry of Religious Affairs, Zakat and Ushr of the Government of Pakistan. Annually, the Ministry donates Rs.12 million from its Zakat Fund for the treatment of poor cancer patients at our facilities. For this purpose, it has permanently deputed a representative who monitors Zakat distribution at our hospitals.

At Shaukat Khanum Hospital, the system we have in place is thorough when determining the eligibility of patients for Zakat.

After a medical evaluation, patients diagnosed with cancer are registered for financially supported treatment. At this point, our Financial Support Services team will discuss the expected treatment costs with the patient. In turn, the patient will disclose details of their assets, dependents, and income sources to help our team ascertain their eligibility for financial support and the extent of support they require. A few patients, depending on their situation, are offered subsidised treatment, though most (over 75%) receive treatment that is absolutely free.

We also have field investigators who allow us to verify the authenticity of the information our staff is given. Qualifying patients are also asked whether they are eligible for Zakat in particular. If they are, we request that they obtain a signed and stamped referral letter from their local Zakat Authorities, verifying their eligibility for Zakat based on local information.

For patients who qualify for Zakat, treatment is subsidised from the Zakat fund that is separately maintained at our hospital.

Zakat al-fitr, also commonly known as ‘Fitrana’, is the compulsory charity paid by every Muslim at the end of Ramadan. It is a way for Muslims to give thanks that they were able to complete the month of fasting.

The required quantity of Zakat ul Fitr was described by the Prophet Muhammad (PBUH) as one saa. The monetary equivalent of this today is £6 worth of staple food. So, the recommended amount to be paid as Zakat ul Fitr by each person is roughly £6.

Zakat ul Fitr must reach the poor in time for Eid so that they can celebrate the festival.

IKCA accepts Zakat ul Fitr payments. But it is vital that we are informed of your intention as is time-sensitive and can only be used towards feeding people. When donating your Zakat ul Fitr please do so in advance of Eid and ensure you select ‘Fitrana’ from the drop-down menu.