Zakat is one of the five fundamental pillars of Islam, serving as a means of spiritual purification and a tool for social justice.
It ensures a fair distribution of wealth by requiring financially capable Muslims to donate a portion of their assets to those in need. Among the many questions surrounding Zakat, a common one is: Does it apply to gold and silver jewellery?
Zakat on gold and silver jewellery
According to Islamic teachings, if a person owns gold or silver that exceeds the Nisab (minimum threshold) i.e., 7.5 tolas (approximately 87.48 grams), and 52.5 tolas (612.36 grams) of silver or more, they are obligated to pay 2.5% of its value as Zakat each year. This rule applies regardless of whether the jewellery is regularly worn or stored away.
For example, if a woman owns gold jewellery worth PKR 10 to 11 lacs, she must pay Zakat on its total value annually.
When to pay zakat on jewellery?
- Tracking ownership: When a woman first acquires gold or silver jewellery, she should note the Islamic (lunar) date of purchase.
- Completing a lunar year: Once a full Islamic year (Hijri year) has passed, Zakat becomes due on the jewellery’s total worth.
- Newly acquired jewellery: If a woman is already obligated to pay Zakat annually (e.g., every Ramadan), then any jewellery purchased seven months before Ramadan will also be included in that year’s Zakat calculation.
- First-time Zakat payers: If a person becomes eligible for Zakat due to a recent purchase, they must wait for a full lunar year before Zakat is due, regardless of Ramadan’s timing.
Key considerations for zakat payment
- Zakat applies to gold and silver, not other metals.
- The jewellery’s total market value determines the payable amount.
- Zakat must be paid annually once the Nisab threshold is met.
Fulfilling this obligation not only brings blessings and spiritual benefits but also fosters economic balance by supporting those in need. Understanding and adhering to these principles ensures that wealth continues to circulate fairly within society.
