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Zakat On Jewellery

0% Admin on your Zakat Donations.

Calculating Zakat on Gold or Silver can be quite complicated and often leads to confusion. This is mainly due to of lack of concise information available telling people exactly how to calculate Zakat on jewellery, specifically on Gold and Silver. 

Zakat entails giving 2.5% of total savings in a lunar year. These savings include cash in hand, income earned on investments, funds currently in bank accounts and precious metal objects such as gold, silver and jewellery. Gold and silver are, as far as Zakat is concerned, considered an investment for the future and as such, they need to be taken into account when working out your annual Zakat. Jewellery is somewhat tricky to calculate because it falls under two categories.

  • Gold/silver jewellery kept for storage only
  • Gold/silver jewellery kept for personal use

Any jewellery kept for storage or investment purposes is Zakat-able. The reason being because it falls under the category of an investment. However, if the jewellery is kept for personal use then it depends on which school of thought you follow. If you follow the Hanafi Madhhab, you have to pay Zakat just as you would if you were using jewellery for storage and investment purposes. Other schools in Islam regulate the any gold and silver used for personal purposes as exempt from Zakat.

We hope this clears the air regarding any misconceptions about Zakat. For more information, be sure to visit Muslim Aid’s blog for similar topics. Giving Zakat is important. Ensuring your give the right amount you are liable for is equally important. This Ramadan, do your part for the Muslim community and give your Zakat donations through Muslim Aid. 

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