What is Zakat?
Zakat is the third pillar of Islam. It denotes the amount of wealth a Muslim must pay to certain groups of underprivileged people.
Zakat itself is neither a tax nor a charity but instead a compulsory act of worship stipulated by Allah (SWT) which signifies the responsibility and duty the rich have towards the poor.
Am I eligible for Zakat?
As a muslim who is above the age of puberty, as soon as you possess wealth above the Nisaab threshold, and that amount remains constant or increases in your possession for a full year, Zakat becomes compulsory upon you.
Why do I need to pay Zakat?
There is a lot of Hikmah (wisdom) behind the legislation of paying Zakat. The most important reason being that it is a direct injunction from Our Creator. Zakat helps to purify one’s wealth, and ensures that wealth is adequately circulated such that the poor and destitute are duly taken care of. Paying your Zakat regularly means that you are obeying your Lord and at the same time taking care of the less privileged. What a win-win.
How much is Zakat?
Zakat is 2.5% (or 1/40) of a Muslim’s total savings and wealth above a minimum amount (Nisaab). This includes your cash in the bank and at home, cash saved for any special purposes, the value of Gold and Silver you own, and the value of shares at their market price.
What is the Nisaab?
Muslims who own wealth or assets equal to or above a certain financial threshold (the nisaab) are required to donate 2.5% of their wealth to those in need. The Nisaab is equivalent to NGN1,100,000.
Who receives Zakat?
The recipient of Zakat must be poor and needy. Categories herein include: People in debt, to free the captives, for the stranded wayfarer, to attract the hearts for those who have been inclined towards Islam (such as reverts), for those fighting in Allah’s cause, and for those employed to collect the Zakat.
What are the benefits of Zakat?
Zakat ensures that the poorest of society who lack basic essentials are protected from hunger and financial insecurity.
For those who have given their wealth for the sake of Allah (SWT), Zakat cleanses their hearts against selfishness and greed.
When do I pay Zakat?
After a full year possession of the Nisaab, you can pay your Zakat whenever you want. However, many people choose to pay Zakat during the month of Ramadan when the reward for good deeds is multiplied.
What are the payment options?
You can make your Zakat and Sadaqah contributions using your debit card. All payments will be made through your Pillr Wallet.
Can I pay my Zakat in installments?
Of course! All you have to do is calculate your Zakat payments, specify the causes you want to fund and set up a monthly recurring debit on your Pillr Wallet.