The Ruling On Zakah For Salary Earners and Business Men and Women

THE RULING ON ZAKAH FOR SALARY
EARNERS AND BUSINESS MEN AND WOMEN
Professor Ahmad Bello Dogarawa

Department of Accounting, Ahmadu Bello University Zaria Nigeria
08032989042 - abellodogarawa@gmail.com
Presented Virtually via Zoom to RA Muslim Ummah Bonny, Rivers State on Sunday,
December 5, 2021 (30.04.1443) & Sunday, 30.01.2022 (27.06.1443)
05.12.2021 & 30.01.2022 Prof. A. B. Dogarawa - ABU Zaria 1

Presentation outline
∞ Introduction and conceptualisation
∞ Zakah for salary earners
∞ Zakah on trade goods
∞ Zakah on investment in shares
∞ Zakah on pension and end of service benefits
∞ Some important rulings on Zakah

INTRODUCTION AND CONCEPTUALISATION

Concept of Zakah
• Zakah is a compulsory payment of a specified amount from specific
kinds of wealth, under certain conditions, by those who own specific
amount to specified categories of recipients.
• The Qur’an mentions it in about 30 places of which in 27 places it was
joined with Salah, and several Ahādīth also covered its subject matter.
• Allah says in the Qur’an, "Establish regular prayer and give Zakah"
[Q73:20]; “Establish prayer; give Zakah, and bow your heads with
those who bow down" [Q2:43]
• The Hadith of Angel Jibril’s question to the Prophet SAW about Islam,
and Ibn Umar on pillars of Islam, mentioned zakah as a pillar of Islam.

Concept of Zakah
• When the Prophet SAW sent Mu’ādh bn Jabal RA to Yemen to call to
Islam, he instructed him to tell them about zakah after calling them to
Kalimatush shahādah and five daily prayers.
• Not paying Zakah when one is obligated to pay is a major sin that attracts
severe punishment in the hereafter as stated by the Prophet SAW, “If
someone is given wealth by Allah but does not pay its zakah, that wealth
will appear to him on the Day of Judgement in the form of a bald serpent
with 2 horns; it will encircle itself round his neck and bite him over his
cheeks and say, “I am you wealth, the treasure which you hoarded.”
• Zakah is therefore a right of the poor over the rich; it is never considered
a favour by the rich to the poor.
Zakatable Wealth
• The payment of zakah is obligatory on all Muslims who meet the
stipulated conditions, from five kinds of wealth:
1) Gold and Silver and modern currencies and bank-notes held in cash or in the
bank
2) Agricultural produce (grains such as such as maize, wheat, rice, beans, millet,
sorghum and soya beans)
3) Grazing livestock and cattle (that is cows, goats and sheep, and camel)
4) Trade goods and earned income (al-Māl al-Mustafād)
5) Minerals and Rikāz (treasures)

Those who are entitled to receive Zakah
• Eight categories of recipients of Zakah have been spelt out in Q9:60:
the poor, the needy, those collecting and distributing zakah, those
whose hearts are inclined (towards Islam), those in captivity, those in
debt, for Allah's cause, and wayfarers.
‫ي َوِف َسبِ ِيل هللا َوابْ ِن‬ ِ‫اب والْغَا ِر‬
‫م‬ ِ َ‫ق‬ِ
‫الر‬ ‫ف‬ِ‫و‬ ‫م‬ ‫ه‬ ‫ـ‬‫ب‬‫و‬ ‫ل‬‫ـ‬ ‫ق‬ ِ ‫ي والْع ِاملِي علَيـها والْـمؤلمَف‬
‫ة‬ ِ ِ‫ص َدقَات لِْلف َقر ِاء والْـمساك‬
‫م‬ ‫ال‬ ‫ا‬َ ‫م‬
‫َّن‬ِ‫• إ‬
َ َ َ ْ َ َ َ ْ َ َ َ َ ََ َ َ
‫يضة ِم َن هللا َوهللا َعلِيم َحكيم‬
ِ
َ ‫ال مسبِ ِيل فَ ِر‬
• There is also preference for distribution of zakah proceeds in the
location it was earned as stated in the Sunnah.
[Bukhari] ‫ص َدقَة ِف أ َْم َواِلِِ ْم تـ ْؤ َخذ ِم ْن أَ ْغنِيَائِ ِه ْم َوتـَرد َعلَى فـ َقَرائِ ِه ْم‬ ‫م‬ ِ
‫ه‬ ‫ي‬‫ل‬
َ ‫ع‬ ‫ض‬‫ر‬‫ـ‬
َ ْ ْ َ َ ََ َ ‫ت‬‫ـ‬ْ‫ف‬ ‫ا‬ ‫اّلل‬
‫م‬ ‫م‬
‫ن‬ َ
‫أ‬ ‫م‬ ‫ه‬
ْ ْْ‫م‬ِ‫• فَأَعل‬

What to pay as Zakah
• The nisāb for silver is 200 dirhams which is worth 595 grams of silver and
for gold is 20 dinār which is worth 85 grams (N2,088,960 as on 19/11/2021)
from which 2.5% is to be paid for lunar year or 2.577% for solar year.
• The minimum amount of crop liable to payment of zakah is 300 sā'i (about
653 kg or approx. 6½ bags); one-tenth (10%) is paid if the seeds were
watered by rain, half of the tenth (5%) if watered by irrigation, or three
quarters of the tenth (7.5%) if partially watered by irrigation.
• The nisāb for trade goods, earned income and extracted minerals is the
same with the nisāb of gold, silver and currencies.
• The nisāb for livestock is: 5 for camels; 30 for cows; and 40 for goats/sheep.
The nisāb and the zakah due for livestock are usually presented in a matrix
form based on some Ahādīth.
When to pay Zakah
• Zakah is due in zakatable wealth only after the passing of one full
lunar year from the date of taking possession of the nisāb (the
minimum amount of wealth on which zakah is due) except in the case
of (1) business profit; (2) babies of livestock; (3) farm produce; and (4)
minerals and treasures.
1) Profit made from a business is added to the original amount (principal) at the
time of paying zakah
2) Babies of livestock due for payment of zakah are added to the flock and
counted together with their mothers.
3) Zakah of farm produce is due for payment on the day of its harvest, in line
with Q6:141.
4) Zakah on minerals and treasures is due for payment on the day of extraction.
ZAKAH FOR SALARY EARNERS

Zakah for Salary Earners
• Salaries, wages, professional fees, bonus, windfalls, gratis receipts
and gifts all fall under the concept of al-Māl al-Mustafād, that is
income or wealth which was not in one’s possession in the
beginning of the assessment year but came into one’s possession
during the year.
• Scholars hold two different opinions regarding the applicability of
zakah on it; the more correct scholarly opinion is that zakah applies
to al-Māl al-Mustafād.
• This means subject to meeting some conditions, salaries and wages
are subject to zakah payment.

Zakah for Salary Earners [cont’d.]
• Scholars who hold the opinion of subjecting salaries and other incomes
to zakah differ on whether passing of one full lunar year is a condition:
1) Ibn Abbas and Mu'awiyah maintained that passage of year is not a condition.
This view was reported from Ibn Mas'ud, Umar bn Abdil Aziz, al-Hasan al-
Basariy, az-Zuhriy, Makhul and al-Auzā'iy among past scholars; and Muhammad
al-Ghazāliy, al-Qardawiy, Wahbah az-Zuhailiy, Mustapha az-Zarqā, Aliyyu as-Sālūs
among contemporary scholars.
• Proponents based their opinion on: absence of authentic marfu’ hadith
that stipulates the passing of one year; divergent views amongst
Sahabah; analogy with Zakah of farm produce which is tied to harvest;
insisting on passage of one year means many salary earners and
professionals would not pay Zakah; analogy with nisāb of farm produce
in relation to quantum of modern day salaries; and maqāsid of Zakah.
2) The four rightly guided caliphs, A'isha and Ibn Umar among the Prophet’s
companions; Abu Hanifah, Malik, Shafi'i, Ahmad bn Hanbal, Ishaq and Ibn
Hazm among past scholars; and Ibn Bāz, al-Uthaymīn, al-Albāniy, Sālih al-
Fauzān, Hisāmud Dīn Afānah among contemporary scholars hold the view
that passing of one full year is a condition. This view was also reported from
Ibn Mas'ud, al-Hasan al-Basariy, Umar bn Abdil Aziz and az-Zuhriy,
• Proponents cited the Aathār of Aliyyu bn Abi Tālib and Ibn Umar on
passing of one full year for earned income; practice of the four rightly
guided caliphs; and Amal Ahlil Madina to support their view
• Based on this opinion, which is the more correct scholarly opinion,
there is no zakah on a salary earner unless he saves some of his
wealth and that amount reaches the nisāb, and one year has passed.
• Based on the first view, salary earners are required to determine and pay
Zakah as follow:
 Multiply monthly salary by 12
 Multiply monthly expenses by 12 - existential needs (food, water, shelter, etc.),
subsistence needs (living expenses, clothing) and prospective needs (trade tools,
debt repayment, furnishings and utensils, means of transport, etc)
 Subtract/deduct annual expenses from annual salary
 If it is up to nisāb, divide it by 12 and pay 2.5% of monthly salary as zakah; but if
what is left after expenses are deducted is less that nisāb, zakah is not due.
• Alternatively, if what is left from one’s monthly salary after his monthly
expenses are deducted is up to nisāb, 2.5% of remainder should be paid
without necessarily multiplying it by 12 months. If it is not, then he goes
with the method of calculating one year earnings and expenses.
• Examples:
1) Mr. A earns 1,000,000 and spends 600,000 every month. His total annual salary is
12,0000 while his total expenses is 7,200,000. If total expenses is subtracted from
total salary, the remainder is 4,800,000. Since what is left at the end of one lunar
calendar year is up to nisāb, he is required to pay 2.5% of what is left from his
monthly salary not minding the fact that it is just 400,000 (i.e. 2.5% of 400,000 =
10,000). If the remainder of the annual earnings less annual expenses is less than
nisāb, zakah is not obligated on him.
2) Mr. A earns 4,500,000 and spends 2,400,000 every month. At the end of every
month, 2,100,000 is left from his monthly salary which is up to nisāb. Accordingly, he
does not have multiply the salary or expenses by 12 to determine his annual salary
and expenses; rather he is required to pay 2.5% of 2,100,000 every month, which is
52,5000. If what is left from his monthly earnings less monthly expenses is less than
nisāb, he should resort to multiplying earnings and expenses each by 12 months as in
example 1 above.
• Based on the second view, salary earners are required to determine
and pay zakah as follow:
 make a schedule of earnings and write down every amount and the date of
taking possession of it; then pay zakah for each net amount separately when
one year has passed from the date on which possession of it was taken if it is
up to nisāb.
 Alternatively, add whatever amount saved from salary to all the money
possessed when one year has passed from the date when the wealth first
reached the nisāb, then pay 2.5% of what is available if it is up to nisāb.
• The above ruling extends to where someone has gold that reaches
nisāb, then he buys new gold during the year, or receives it as a gift
and the like; he either start a new year for the newly-acquired gold or
give zakah on all the gold when one year has passed for the old gold.
• Examples:
1) Mr. A earns 4,000,000 from salary and other income and saves 2,300,000 every month. At the end
of one lunar calendar year for each monthly saving, he is obligated to pay 2.5% of 2,300,000 which
is 75,500.
2) Mr. A earns 4,000,000 from salary and other income at the beginning of the year. His monthly
expenditure for that month amounts to 1,900,000 which means he saves 2,100,000 in the first
month of that year which is up to nisāb. He realises that at the end of the year, his saving is
13,000,000 due to fluctuation in earned income and expenditure over the months. He is required
to pay 2.5% of 13,760,000 which is 344,000.
3) Mr. A earns a salary of 1,000,000 and saves 350,000 every month. At the beginning of the year, he
receives a windfall of 1,800,000 and when to 350,000 his total savings amounted to 2,150,000
which is up to nisāb. Though he continue to save 350,000 every month, he withdrew and spent
the windfall. At the end of one lunar calendar year he would have saved 1,800,000. He is not
required to pay zakah on his salary since his total savings is not up to the nisāb. However, if he has
other sources of income from which he was able to save 400,000 at the end of the year he would
have saved a total of 2,200,000. The amount will be liable to 2.5% of 2,200,000 which is 55,000.
• Important notes:
1) According to both opinions regarding the payment of zakah from salaries,
wages, professional fees or other earned income, nisāb is a condition.
2) By the agreement of scholars, if a person spends all his monthly salary and
has nothing left, so that at the end of the month he has spent all his money,
then he does not have to pay zakah.
3) A person who has saved enough from his salary and at the end of the year
has what is up to the nisāb must pay zakah on the savings and not the total
salary earned over the year.
4) A person who has saved part of his salary and the savings is not up to the
nisāb at the end of one year is not required to pay zakah.
5) If a worker is putting his salary into use by investing it in halal investment
instruments, the investment is subject to the rules of zakah on investment.
ZAKAH ON TRADE GOODS

Zakah on Trade Goods
• Zakāh is due on trade goods if it reaches the nisāb and one lunar
year has passed since the capital was acquired according to the
opinion of majority of scholars to the extent that Ibn al-Munzir even
reported ijmā on it.
• Goods/assets purchased with the intention of trading in it is liable to
zakah if one full year passes from the time of acquiring the capital,
and it reaches nisāb either by itself or when added to other cash.
• The cash equivalent of trade goods is determined based on market
value of the goods at the time of assessment of zakah NOT their
historical cost.

Zakah on Trade Goods [cont’d.]
• Owners of provisions, departmental or pharmacy/chemist stores and
other similar businesses are required to determine the market value
of all unsold goods and subject same to zakah if one full year passes,
and it reaches nisāb either by itself or when added to other cash.
• Owners of poultry, fish, sachet/bottle water businesses and the like
are required to determine the market value of all unsold stocks
(chickens, fish, packaged water, eggs including unconsumed feeds)
and subject same to zakah if one full year passes, and it reaches nisāb
either by itself or when added to other cash excluding the value of
tools, equipment, vehicle, buildings used for operations.

• The profit made from money invested in trade should be added to the
capital if one year has passed since the capital was acquired, and zakah
must be assessed and paid on the total amount.
• Zakah is not due on farm animals that constitute the means of
production itself such as egg-laying chicken and dairy cows unless they
are sold within the zakah accounting year, but there is zakah on their
product (e.g. egg and milk inventories).
• Owners of premises or land used to generate rent are not liable to
payment of zakah on the value of the asset(s); however, they are
required to pay zakah on the rental income collected if one full year
passes, and it reaches nisāb either by itself or when added to other cash.
• Zakah is not paid on valuable items such as property or cars unless
the intention of acquiring them is to sell them for profit making, then
it becomes a trading good and zakah must be paid on such items if a
lunar year passes from the time of the owner's intention to sell.
• If zakah is due on trade goods and the payer does not have cash with
which to pay the zakah, according to the correct scholarly view, he
can either sell some of the goods on which zakah is due and pay the
zakah or give some of the trade goods that are equal in value to the
zakah that is due provided the goods are things that will be of benefit
to the poor. But if selling the goods is not possible or will adversely
affect him, he can wait until he acquires cash with which to pay.
ZAKAH ON INVESTMENT IN SHARES

Zakah on Investment in Shares
• Shares are traded among individuals, like other products, which

makes people take them as a means of trade by buying and selling
them with the aim of making a profit, thereby making the shares to
take the ruling of trade goods (‫)عروض التجارة‬.
• Some people buy shares with the intention of investment by keeping
them and benefiting from their profits/dividend, thus making such
shares income generating assets (‫)املستغالت‬.

Zakah on Investment in Shares [cont’d.]
• Zakah is due on shares that are purchased with the intention of
trading in them after one full year has passed from the time of
acquiring the principal amount used to purchase them if their market
value (principal and profit) on zakah financial day reaches nisāb by
itself or when added to other cash just like any other trade goods.
• If the actual market value of the shares is not known, the opinion of
experts such as brokers should be sought regarding its estimated
market value and zakah should be paid based on it.

• If shares are bought with the intention of investment by keeping
them and benefiting from their profits (dividend), zakah is not paid
on the value of the principal BUT on the profit/dividend generated
from them if one full year passes, and it reaches nisāb either by itself
or when added to other cash.
• The above methods of paying zakah on shares held as trade goods
(‫ )عروض التجارة‬or kept as income generating assets (‫ )املستغالت‬are in line
with the resolution 28:3/4 of OIC International Islamic Fiqh
Academy, AAOIFI Shari’ah standard 35:4/2/4, Fatwā of Al-Lajnatud
Dā’imah, and the opinion of many contemporary scholars including
Sheikh Al-Uthaimīn and Al-Qaradāwiy.

• Owners of company shares that are zakatable are individually
responsible for the payment of zakah because they are the true owners
of the money, and the company handles the shares on their behalf and
the fact that despite its being an independent entity, some conditions
of zakah being obligatory cannot be met by a company; also zakah is an
act of worship which requires an intention when it is done.
• However, a company can pay zakah on behalf of shareholders in any of
the following cases as contained in resolution 28:3/4 of OIC Fiqh
Academy and Shari’ah standard 35:2/2/1 of AAOIFI:
1) the Law of the State obliges companies to pay zakah;
2) stipulation of commitment to pay zakah in the articles of association
3) resolution by the general assembly; or
4) a shareholder authorises the company to pay zakah on his behalf.
• Where the company’s governance pay zakah on its shares, it is
required to do so in the same manner as person pays zakah on his
wealth by assuming that the capital of all shareholders is the
property of a single person.
• Where none of the aforementioned cases applies, payment of zakah
remains the responsibility of shareholders; however, the company is
required to indicate the amount of zakah payable per share or per a
given balance of an investment account.
• According to Sheikh Ibn Al-Uthaimīn in Majmū’ Fatāwa, 18/217, if
some of the shareholders authorise the company to pay zakah on
their behalf and some do not, then the company should pay the
zakah of only those who give authorisation.
• According to the more correct scholarly view, ruling on shares of
companies with regard to zakah is as follows:
1) Zakah is due on shares of companies which engage only in trade such as import/export
companies, and international trade companies.
2) Shares of companies which engage both in manufacturing and trade such as petroleum,
textile, cement, paint, beverages, metal and chemical companies that extract or buy
raw materials, subject them to some changes, then trade in them are subject to zakah
after deducting the value of the assets.
3) Only profits of shares of companies which do not engage in any kind of trade, such as
dye, hotel and transportation companies; educational institutions and healthcare
facilities are subject to zakah if it reach the nisāb and after the passage of one year of
acquiring the capital, because the value of shares of these organisations is based on
equipment, tools, buildings, furnishings and so on, which are used to carry out
operations for profits making.
4) Agricultural companies are required to pay zakah on their crops and produce on the day
of harvest if the produce is of the type on which zakah is due.
• Shareowners in both manufacturing and agricultural companies are
to subject their shares worth of cash reserves to zakah if it reaches
the nisāb by itself or when added to other monies.
• AAOIFI Shari’ah standard 35:5/1/4/1 stipulates that zakah is paid on
the cost (principal) of bonds and treasury bills, whereas the entire
amount of interest should be donated for charitable purposes.
• In 5/1/4/2, the standard provides that owners of sukuk are required
to pay zakah on the basis of their underlying assets; and in 5/1/4/3,
the standard mandates the same treatment for investment funds.

ZAKAH ON PENSION AND END OF SERVICE BENEFITS

Zakah on Pension and End of Service Benefits
• There are different types of pension schemes; some are liable to zakah
payment while some are not.
• In Nigeria, five types of pension are available namely contributory,
voluntary contribution, micro pension, cross border pension scheme
and retirement plan.
• It can be inferred from resolution 143:1/16 of OIC Fiqh Academy that
contributory pension scheme is not subject to zakah during
employment despite pension deductions from salary because the
employee has neither complete possession nor access to the fund
since the pension is typically run, on behalf of both the employee and
employer; and the contribution is deducted from his salary at source.
Zakah on Pension [cont’d.]
• Voluntary contributions scheme, micro pension scheme and cross
boarder pension scheme are liable to payment of zakah whilst
contributing to the fund if the contributed amount reaches nisāb by
itself or when added to other funds after one year has passed.
• It is not obligatory to pay zakah on the amount that is being kept as “end
of service award” throughout the service duration due to lack of full
ownership of the amount. However, if the amount is calculated and paid
to the employee in lump sum or in installments at specific intervals, such
paid amount should be included in his zakatable cash for that year.
• The rulings on end of service award extends to retirement award and
saving award as per resolution 143:1/16 of the OIC Fiqh Academy.
SOME IMPORTANT RULINGS ON ZAKAH

Some Important Rulings on Zakah
1) Whoever possesses zakatable wealth that reaches nisāb must give
zakah on it, even if he owes a debt that takes his wealth below nisāb
except the debt that falls due before the new zakah year begins as
upheld by Imam ash-Shāfi‘i and many contemporary scholars such as
Ibn Bāz and al-Uthaymīn because the Prophet SAW used to send zakah
collectors and he did not instruct them to enquire as to whether the
owners of wealth had debts or not.
2) According to the jumhūr, it is not permissible for a zakah payer to count
the money he lends to someone and let it off as part of his zakah
payment to the borrower. However, if the recipient unstipulatedly
return the amount he collected or part of it to the payer in order to pay
off his debt or part of it, the payer can collect.
Some Important Rulings on Zakah [cont’d.]
3) The basic principle is that zakah should be paid in the form of the
wealth on which it is due; that is zakah on cash should be given in cash,
and zakah on livestock should be given in animals, and zakah on farm
produce should be paid in crops, except for zakah on trade goods which
may be paid in cash equivalent of the value of the goods or from the
trade goods themselves as suggested by AAOIFI standard 35:5/2/4.
4) Zakah of cash should not be given in the form of items or food unless
the beneficiary made a request for its equivalent in the form of other
items. Ibn Taymiyyah and some contemporary scholars permit the
payment of equivalent of zakah in other items to recipients either
because given cash to them will clearly be detrimental, or where a
recipient's mental condition dictates that he should not be given cash.
5) Zakah is paid from any zakatable wealth that is held in pledge if it
reaches nisāb and its due time/date comes.
6) Debts that are owed to a person who is supposed to pay zakah take
one of the following rulings:
a) If the debtor is able to pay it off when asked to do so, zakah must be
paid on it every year, but it is permissible to delay paying it until the
money is received, then zakah must be paid on it for all past years.
b) If the debtor is poor, or one who denies that he owes anything and
there is no proof to confirm it, then no zakah is due on it, the owner
should however pay zakah on it for one year when he receives it in
line with Malikiyyah.
7) A person may be obliged to pay zakah because he owns the nisāb
and at the same time he may also be entitled to zakah, because
either what he has is not sufficient (as may be the case with the
payer of zakah from agricultural produce) or he belongs to a
category of zakah recipients such as "zakah administrator" or "in
the cause of Allah“ that is entitled to zakah irrespective of their
financial status.
8) Simply being an orphan does not does not mean that he is entitled
to zakah funds unless he falls into one of the eight categories of
zakah recipients, because he may be rich and have sufficient wealth
to make him independent of means.

9) According to the more correct scholarly view, zakah funds cannot be
used for payment of scholarships, building of mosques or funding its
activities, building of hospitals and construction of roads; although
resolution 165:3/18 of OIC Fiqh Academy permits giving assistance
to poor students who are outside their countries and have no
scholarships
10) Zakah funds can be used to support da’awah activities including
payment of salaries or allowances to teachers of newly reverts
according to the opinion of Jamāluddīn Al-Qāsimiy, Sheikh Hussain
Makhlūf, Sheikh Muhammad ibn Ibrāhīm Ālish Sheikh, Sheikh Ibn
Bāz, Sheikh Yūsuf Al-Qardāwiy, Sheikh Abdullah Nāsih Ulwān, Sheikh
Muhammad Sālih Al-Munajjid and many fatawa committees.
11) According to the more correct scholarly view, zakah is not liable on
women jewelries made from gold and/or silver if they use them for
personal ornamentation and not kept them as asset. However, if a
woman buys jewelry for the purpose of accumulating wealth or
selling it later, or has what would generally be considered an
extravagant amount, zakah must be paid on it.
12) Cash realised from the sale of agricultural produce such as potato,
cassava, yam, plantain, pepper, etc which do not attract zakah by
themselves is subject to zakah if it reaches nisāb by itself or when
added to other cash savings after the passage of one lunar year
from the time of the sale.

13) According to AAOIFI Shari’ah standard 35:4/1, zakah is not
obligatory on operational intangible assets such as copy right,
patent rights, trademarks and computer software; however, section
5/2/7 of the standard provides that where intangible assets are
prepared for trade, they should be subject to the rules of zakah on
articles of trade.
14) According to resolution 15:3/3 of the OIC Fiqh Academy, it is
permissible to use zakah funds in investment projects that are
eventually owned by the recipients, or which are under the control
and administration of the zakah collection and distribution entity,
provided the basic and immediate needs of the recipients are
fulfilled and proper guarantees to avoid loss are provided.
15) According to resolution 120:2/13 of the OIC Fiqh Academy,
expenses of land reclamation/preparation, digging irrigation canals
and soil transfer; or expenses for purchasing seeds, fertilisers and
pesticides to protect crops against agricultural diseases and their
likes are not deducted from the zakah liable on agricultural produce
if the payer has paid them out of his own funds. However, if for lack
of resources, he had to borrow for paying such expenses, the
borrowed amount is deductible from what is liable just like
expenses for delivering zakah amount to its deserving recipients is
deducted from it.

16) According to OIC Fiqh Academy’s resolution 165:3/18;
• Assets, not explicitly mentioned in the original Islamic texts, are subject to Ijtihād in regard to
its zakatability or not provided such Ijtihād fulfils the Shari’ah conditions and criteria.
• A zakah payer is not required to cover all the eight categories of zakah recipients during the
distribution of the due zakah; however, where a competent authority is to carry out the
distribution, it should cater for all the categories provided the funds are available, need exists,
and all the categories of recipients are accessible.
• It is permissible to delay the distribution of zakah when it is necessary for public interest, or to
reach a poor relative, or other reasons.
• Zakah can be spent for strengthening the belief of reverts or compensating them for any loss
they might have incurred; it may also be spent on unbelievers who are hoped to revert to
Islam or to dissuade them from causing any harm to Muslims.
• Zakah funds can also be spent in providing support to afflicted non-Muslims in areas of
disasters, earthquakes, floods, and famines, in order to reconcile their hearts.
• Zakah can be used for the payment of ransoms to free Muslim war prisoners and for releasing
kidnapped Muslims or kidnapped family members under the category of “those in bondage”.
Thank you for listening

The Ruling On Zakah For Salary Earners and Business Men and Women

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The Ruling On Zakah For Salary Earners and Business Men and Women

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THE RULING ON ZAKAH FOR SALARY

EARNERS AND BUSINESS MEN AND WOMEN

Professor Ahmad Bello Dogarawa

05.12.2021 & 30.01.2022 Prof. A. B. Dogarawa - ABU Zaria 1

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• Shares are traded among individuals, like other products, which

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