Last updated: 2 November 2026
Zakat is the obligatory annual charity of 2.5% on savings and other qualifying wealth above a set threshold, and it may only go to the eight groups named in the Qur’an. Sadaqah is any voluntary charity, of any size, at any time, to anyone in need. Sadaqah jariyah is sadaqah that keeps benefiting people, such as a well or a child’s education, and the giver keeps earning its reward after death.
When families ask us how to give Zakat, Sadaqah or a memorial gift through the Momina Cheema Foundation, the first question is usually a simpler one: which is which? This guide answers that plainly. It explains the commonly held positions and says where scholars differ. For a ruling on your own situation, please ask a scholar you trust.
In short
- Zakat is a pillar of Islam. It is obligatory once your wealth stays above the nisab for a full lunar year.
- Sadaqah is voluntary. It has no minimum, no fixed date and no restricted list of recipients.
- Sadaqah jariyah is lasting charity: water, schooling, knowledge, a planted tree.
- In Pakistan, banks deduct Zakat from some savings accounts on the first day of Ramadan. That deduction does not cover your other wealth.
- Zakat al-Fitr (fitrana) is a separate, small per-person payment made before Eid prayer.
- The nisab is 7.5 tola of gold, or the value of 52.5 tola of silver when you hold a mix of wealth.
What is the difference between Zakat and Sadaqah?
The core difference is obligation. Zakat is a fixed duty on qualifying wealth, with a set rate, threshold and list of recipients. Sadaqah is a free choice, with no set amount or timing, and it can reach anyone in need, Muslim or not. Every Zakat payment is charity, but not every charity is Zakat.
The table below compares the four forms of giving people most often confuse.
| Zakat | Sadaqah | Sadaqah jariyah | Zakat al-Fitr (fitrana) | |
|---|---|---|---|---|
| Obligatory? | Yes, for those who qualify | No, voluntary | No, voluntary | Yes, for those who can afford it |
| How much? | 2.5% of qualifying wealth | Any amount, or a kind act | Any amount | A small set amount per person |
| When? | Once a lunar year has passed on wealth above nisab | Any time | Any time | During Ramadan, before Eid prayer |
| Who can receive it? | Only the eight groups in Qur’an 9:60 | Anyone in need | Anyone, through a lasting project | People in need, as with Zakat |
| Can it fund buildings or projects? | Most scholars say no; it should reach eligible people | Yes | Yes, this is its purpose | No |
| Must it be money or goods? | Yes | No; kind acts also count | Usually money, goods or knowledge | Food or its value |
A useful way to remember it: Zakat purifies the wealth you keep; sadaqah is the generosity you choose; sadaqah jariyah is generosity that keeps working.
What is Zakat, and who has to pay it?
Zakat is the third pillar of Islam: a payment of 2.5% on certain kinds of wealth, due once a year from an adult Muslim whose wealth has stayed at or above the nisab for one lunar year. The word comes from a root meaning to purify and to grow.
Three ideas decide whether you owe Zakat.
Nisab. This is the minimum amount of wealth that makes Zakat due. It is measured against 87.48 grams of gold or 612.36 grams of silver. The Hanafi school, which most Muslims in Pakistan follow, uses the silver standard. Because silver is far cheaper than gold, the silver nisab is much lower, so more people qualify to pay.
Hawl. This is one lunar year, about 354 days. Zakat is due when your wealth has stayed at or above the nisab for a full hawl. Many families pick a fixed date, often in Ramadan, and calculate on that day each year.
Zakatable wealth. This normally includes cash at home and in the bank, gold and silver (including jewellery, in the Hanafi view), money owed to you that you expect to recover, shares and investments, and business stock. Your home, car, furniture and clothes for personal use are not counted.
Debts due now can usually be deducted before you calculate. Scholars differ on how to treat long-term loans such as a house loan, so ask about your own case.
How do you work out your Zakat?
Add up your zakatable wealth on your Zakat date, subtract debts that are due, check the total against the nisab, and if it is at or above the nisab, pay 2.5% of the whole amount. The 2.5% applies to the full total, not only the part above the threshold.
- Fix your Zakat date. Use the same Islamic date each year.
- List your cash and savings. Include money at home, in every bank account and in mobile wallets.
- Value your gold and silver. Use the selling price per tola or gram on that day.
- Add investments and business stock. Use their current market value.
- Add money owed to you that you expect to get back.
- Subtract debts and bills due now.
- Compare with the nisab. Check the current price of 612.36 grams of silver (or gold, if your school or scholar uses gold).
- Multiply by 2.5%. That is your Zakat for the year.
- Subtract any Zakat already deducted by your bank this year, then pay the rest.
Here is a simple illustration, using made-up numbers. Suppose your total zakatable wealth is Rs 800,000 and you owe Rs 100,000 in bills due now. Your net is Rs 700,000. If that is above the nisab, your Zakat is Rs 17,500 (2.5% of Rs 700,000).
How do you work out Zakat on gold and silver in tola?
In Pakistan, gold and silver are weighed in tola, and one tola is about 11.66 grams. The gold nisab of 87.48 grams is 7.5 tola, and the silver nisab of 612.36 grams is 52.5 tola. If you own only gold and it is below 7.5 tola, most Hanafi scholars say no Zakat is due on it. If you also have cash or other zakatable wealth, add everything together and compare the total with the value of 52.5 tola of silver.
| Grams | Tola | When it applies | |
|---|---|---|---|
| Gold nisab | 87.48 g | 7.5 tola | You own gold only, and no cash, silver or other zakatable wealth |
| Silver nisab | 612.36 g | 52.5 tola | You own silver only, or a mix of gold, cash and other zakatable wealth (the Hanafi view most people in Pakistan follow) |
To work out Zakat on gold:
- Weigh your gold in tola, keeping jewellery of different karats separate (24K, 22K, 21K and so on).
- Find today’s selling rate for each karat from your local sarafa (jewellers’) association or a reliable daily rate. Use the price you could sell at, not the price of new jewellery with making charges.
- Multiply weight by rate for each karat and add the totals.
- Add the rest of your zakatable wealth (cash, savings, silver, investments, business stock) and subtract debts due now.
- Check against the nisab and, if you are at or above it, pay 2.5% of the total.
An illustration with made-up prices: suppose you own 10 tola of 22K gold and the selling rate on your Zakat date is Rs 300,000 per tola. Your gold is worth Rs 3,000,000. If you have no debts due, Zakat on the gold alone is Rs 75,000 (2.5% of Rs 3,000,000). Gold and silver prices change daily, so always use the rate on your own Zakat date.
Do you pay Zakat on property, plots, cars and shares?
Zakat is due on wealth held as savings or for trade, not on things you own for personal use. Your home and car are not zakatable, but a plot bought to resell, business stock and shares usually are. The table below gives the commonly held Hanafi positions, based on published fatwas from Darul Uloom Deoband and other Hanafi muftis.
| Asset | Zakat due? | Notes |
|---|---|---|
| The house you live in | No | Personal-use property is not zakatable. |
| Car for personal use | No | A car you sell as a business is trade stock. |
| Plot bought to resell | Yes | Pay on its market value each year, as trade goods. |
| Plot for building your own home | No | If you did not buy it to sell, no Zakat is due on its value. |
| Shop, office or house you rent out | No, on the property | The rent you receive and still hold on your Zakat date is added to your cash. |
| Shares and mutual funds | Yes | Scholars differ on whether to value the whole share or only the company’s zakatable assets; many use market value. |
| Business stock and cash | Yes | Value stock at its current sale value and add business cash. |
| Provident fund | Scholars differ | Many say compulsory contributions are not zakatable until you receive them. Ask a scholar you trust about your own fund. |
| Savings in an insurance policy | Yes, on the amount invested | A Deoband fatwa says Zakat is due on the amount you paid in, not on any extra amount. |
If you are unsure whether your intention for a plot was to sell or to use it, ask a scholar about your own case. Intention at the time of buying matters in the Hanafi view.
How does Zakat deduction from bank accounts work in Pakistan?
In Pakistan, banks deduct 2.5% Zakat at source from savings and profit-and-loss sharing accounts on the first day of Ramadan, if the balance that day is at or above the nisab set by the government. This is done under the Zakat and Ushr Ordinance 1980. Current accounts are not part of this deduction.
For Ramadan 2026, the Ministry of Poverty Alleviation and Social Safety set the bank nisab at Rs 503,529, by notification dated 16 February 2026. The State Bank of Pakistan passed this to all banks the next day. The figure changes every year, so check the new one before each Ramadan.
What families often miss:
- The deduction covers only that bank balance. You still owe Zakat yourself on gold, cash at home, other accounts, investments and business stock.
- It is 2.5% of the whole balance, not only the amount above the nisab.
- You can apply for exemption by giving your bank the Zakat Declaration Form CZ-50. Allied Bank’s guidance, for example, asks for the original or a true copy attested by a notary public, at least 30 days before the deduction date. Check your own bank’s rules.
- Why people file CZ-50: some follow a fiqh that does not accept deduction at source as their Zakat, and some prefer to pay their Zakat themselves to causes they choose. If you file it, you remain responsible for paying.
- Deducted Zakat counts. If your bank deducted Zakat this year, most scholars allow you to subtract it from your total before paying the rest.
Who can receive Zakat?
Zakat may go only to the eight groups named in the Qur’an (At-Tawbah 9:60): the poor, the needy, those who administer Zakat, those whose hearts are to be reconciled, people in bondage, people in debt, those in the cause of Allah, and the stranded traveller. Most scholars also hold that Zakat recipients must be Muslim.
In practice, most Zakat in Pakistan reaches the first two groups and people in debt. A few points families often ask about:
- Your own parents, grandparents, children, grandchildren and spouse cannot receive your Zakat, in the view of most scholars, because you are already responsible for supporting them. Help them from your other money.
- Brothers, sisters and other relatives who are eligible can receive it, and many scholars say it carries a double reward: charity and keeping family ties.
- Ownership matters. The majority view, including the Hanafi school, is that Zakat must pass into the ownership of the eligible person, so they can use it for their own needs. This is why many scholars say Zakat cannot fund the construction of mosques, schools or hospitals; those are better paid for with sadaqah.
- You do not have to tell the person it is Zakat. Some people feel embarrassed accepting it. Your intention when you give is what counts.
If you give Zakat through an organisation, ask how it keeps Zakat separate from other donations and how it makes sure Zakat reaches eligible people.
What counts as Sadaqah?
Sadaqah is any voluntary charity given for the sake of Allah. It can be money, food, clothes or time, and it can also be a kind word, a smile, sound advice or removing something harmful from a path. There is no minimum, no fixed date and no restricted list of recipients.
Sadaqah comes from a root meaning truthfulness. Scholars explain that giving freely is a sign of sincere faith. A widely known hadith teaches that every act of goodness is charity, which is why sadaqah is open to people with very little money.
Sadaqah can reach anyone in need, including non-Muslims, and it can fund projects that Zakat may not, such as building a school or repairing a road. It can be given openly or in private; the Qur’an praises both, while saying private giving is better for you (Al-Baqarah 2:271).
Some other payments sit close to sadaqah but have their own rules. Fidya is paid by someone who cannot fast and cannot make up the fasts. Kaffarah is the expiation for deliberately breaking a fast or an oath. Aqiqah is the sacrifice for a newborn, and Qurbani is the sacrifice at Eid ul-Adha. Each has separate conditions, so ask a scholar if one applies to you.
What is Sadaqah Jariyah?
Sadaqah jariyah means “flowing” or “ongoing” charity. It is sadaqah that keeps benefiting people over time, such as a water supply, a school, a copy of the Qur’an or knowledge that others use. As long as people benefit, the giver continues to earn reward, including after death.
The basis is a hadith in Sahih Muslim (1631), narrated by Abu Hurairah: when a person dies, their deeds end except for three things: ongoing charity, beneficial knowledge, and a righteous child who prays for them.
A longer hadith in Sunan Ibn Majah (242), graded hasan, lists good deeds whose reward reaches a believer after death. They include knowledge taught and spread, a righteous child, a copy of the Qur’an left behind, a mosque, a house for travellers, a canal dug, and charity given while in good health.
Common forms of sadaqah jariyah today:
| Form | Why it is ongoing |
|---|---|
| Clean water: a well, borehole or pipeline | People drink, cook and wash from it every day for years |
| Funding a student’s education | The knowledge stays with them and passes to others |
| Building or supporting a school | Each new class benefits |
| Books and copies of the Qur’an | Read again and again |
| Planting trees | Shade, fruit and soil for years |
| Healthcare that lasts, such as an ambulance service | Serves many patients over time |
A single meal or a one-off cash gift is still sadaqah and carries great reward. Scholars simply note that sadaqah jariyah is about benefit that continues.
Can you give Sadaqah Jariyah for someone who has died?
Yes. Most scholars agree that sadaqah given on behalf of a deceased parent, child or other loved one reaches them. The clearest example is Sa’d ibn Ubadah. When his mother died, he asked the Prophet (peace be upon him) which charity was best. The answer was water, so Sa’d dug a well in her name (Sunan Abi Dawud 1681, graded hasan).
This is why many families in Pakistan give water, education or a lasting project in memory of someone they have lost. A memorial gift does not need to be large. What matters is sincere intention and that the benefit continues.
How is Zakat al-Fitr (fitrana) different?
Zakat al-Fitr, known in Pakistan as fitrana, is a small fixed payment due for every member of a Muslim household at the end of Ramadan. It must be paid before the Eid ul-Fitr prayer so that people in need can also celebrate Eid. It is separate from your annual Zakat.
According to Sahih al-Bukhari (1503), the Prophet made it obligatory for every Muslim, young or old, male or female, as one sa’ of dates or barley, and ordered that it be paid before people go out to the prayer. Today it is usually given as the cash value of the staple food. The head of the household pays for dependants, including children.
The amount is announced each Ramadan and varies by the food chosen (wheat, barley, dates or raisins). For Ramadan 2026, the Council of Islamic Ideology set the minimum fitrana at Rs 300 per person, based on wheat flour prices, with higher amounts of Rs 1,100 for barley, Rs 1,600 for dates and Rs 3,800 for raisins. The Council advised people outside Punjab to use their own province’s prices. Those who can afford it often pay at the higher rates. Many families pay early in Ramadan so it reaches people in time.
What are Fidya and Kaffarah?
Fidya is paid by someone who cannot fast because of old age or long-term illness and cannot make up the fasts later. Kaffarah is the heavier expiation for deliberately breaking a Ramadan fast without a valid reason. Both are separate from Zakat and sadaqah.
- Fidya: feeding one poor person for each missed fast, usually paid as the same amount as one fitrana per fast. For Ramadan 2026, the Council of Islamic Ideology gave the fidya for 30 fasts as Rs 9,000 at the wheat rate.
- Kaffarah: fasting 60 days in a row for each fast deliberately broken. If someone truly cannot fast, they feed 60 poor people, two meals each.
If you missed fasts for a temporary reason, such as travel or a short illness, you normally make them up later rather than paying fidya. Ask a scholar if you are unsure which applies to you.
How should overseas Pakistanis pay Zakat?
If you live abroad, work out your Zakat on all your zakatable wealth, wherever it is held: savings in your country of residence, gold, and any bank balances or investments in Pakistan. You can pay it in either country, to eligible people or through a trusted organisation.
- Use one Zakat date and one currency for the whole calculation, converting at the rate on that day.
- Check bank deduction in Pakistan. If a Pakistani savings account had Zakat deducted on the first of Ramadan, subtract it from your total. Non-resident Pakistanis can usually ask their bank about exemption, so check your own bank’s rules.
- Say clearly that it is Zakat when you give through an organisation, so it is kept for eligible people.
How do you choose where to give?
Give where the money can do what you intend, and where you can see how it is used. Before giving Zakat in particular, check that the organisation can use it only for eligible people.
A short checklist:
- Is it Zakat or sadaqah? Decide before you give, and tell the organisation which it is.
- Is the organisation registered? Ask for its registration and look for published reports.
- How is Zakat kept separate? Ask how Zakat reaches eligible people, and whether any of it pays for buildings or running costs.
- Is the help direct and verifiable? For example, scholarship fees paid to the institution rather than in cash.
- Is it lasting? If you want sadaqah jariyah, choose something that keeps benefiting people.
- Are you under pressure? Genuine causes do not need countdown timers or guilt. Take your time.
Where the Momina Cheema Foundation fits in
The Momina Cheema Foundation began in 2011 in memory of Momina Cheema, who died at twenty-six while studying law. Her mother, our Founder and CEO Tayyeba Zia Cheema, puts it simply: “We could not bring Momina back, so we chose to keep her purpose alive.” In that sense, the Foundation itself is a family’s sadaqah jariyah.
Our work is built around giving that lasts.
- Education. Since 2011 we have funded more than 650 women through university, with Rs 17.5 million disbursed in scholarships. Fees are paid directly to institutions, in law and social sciences since 2011 and in medicine since 2018. You can read more in our guide to scholarships in Pakistan.
- Clean water and healthcare in Shigar. Through our Shigar Community Project in Gilgit-Baltistan, more than 15 villages now have clean water and healthcare. Water projects are shared 50:50 with the community. Read how a village in Shigar gets clean water to see how projects are chosen. We also run the first district-wide ambulance in Shigar.
- Schooling and skills. The Momina Cheema School in Shigar, opened in September 2025, is free from Nursery to Grade 5. Our Professional Training Centre is the first and only NAVTTC-affiliated centre in Shigar, offering free certified courses.
Our donate page has separate routes for Zakat, sadaqa jaria and memorial gifts given in the name of someone you love. If you are unsure which to choose, ask your scholar first, then give with a clear intention. You can also read Momina’s story.
Frequently asked questions
Can I pay Zakat in instalments during the year?
Many scholars allow you to pay Zakat in advance, spread across the months before your Zakat date, as long as you intend it as Zakat and settle the full amount by that date. Paying late, after it is due, is not recommended without a valid reason. Keep a simple record of what you have paid so your calculation on the day is accurate.
Can I give Zakat to non-Muslims?
Most scholars say Zakat is for eligible Muslims, based on the hadith that it is taken from the wealthy among Muslims and returned to their poor. Some scholars allow it in limited cases under the category of reconciling hearts. Sadaqah, however, can go to anyone in need, so non-Muslim neighbours and causes can always be helped from sadaqah.
Does my bank’s Zakat deduction mean I have paid all my Zakat?
Usually not. The bank deducts only from qualifying savings and profit-and-loss sharing balances on the first day of Ramadan. Gold, cash at home, current accounts, investments and business stock are not included. Work out your full Zakat, subtract what the bank deducted, and pay the rest yourself.
Is gold jewellery that I wear subject to Zakat?
In the Hanafi school, which most people in Pakistan follow, gold and silver jewellery is included in Zakat even if it is worn. The Shafi’i, Maliki and Hanbali schools generally exempt jewellery worn in normal use. Because this changes your total, check with your own scholar and stay consistent each year.
How many tola of gold makes Zakat due?
If gold is your only zakatable wealth, Zakat is due once you hold 7.5 tola (87.48 grams) or more for a full lunar year. If you also have cash, silver or other zakatable wealth, most Hanafi scholars say you add it all together and compare it with the value of 52.5 tola of silver, which is a much lower threshold. Then pay 2.5% of the total.
Is there Zakat on a plot in Pakistan?
It depends on why you bought it. A plot bought with the intention of reselling it is treated as trade goods, so Zakat is due on its market value each year. A plot bought to build your own home, or for personal use, is not zakatable. Rent from property is added to your cash if you still hold it on your Zakat date.
Can sadaqah be given on behalf of someone who is still alive?
Yes. You can give sadaqah on behalf of a living parent, a child or anyone you wish to honour, and most scholars say the reward reaches them while you also benefit. Many families give sadaqah when someone is ill, travelling or starting something new. Simply make the intention when you give.
Sources
All links opened and checked on 2 November 2026.
- Ministry of Poverty Alleviation and Social Safety notification, reported by Profit (Pakistan Today): Zakat nisab for Ramadan 2026
- State Bank of Pakistan, BPRD Circular Letter No. 3 of 2026
- Allied Bank: Zakat on bank deposits in Pakistan (CZ-50 guidance)
- Islamic Relief Canada: Nisab (gold and silver weights, hawl)
- National Zakat Foundation: Who receives Zakat (Qur’an 9:60)
- Dar al-Ifta al-Misriyyah: Difference between zakat and sadaqah
- IslamQA: What is sadaqah jariyah (Sahih Muslim 1631, Ibn Majah 242)
- HadeethEnc: Sa’d ibn Ubadah’s well for his mother (Abu Dawud 1681)
- HadeethEnc: Zakat al-Fitr (Sahih al-Bukhari 1503)
- Darul Uloom Deoband (via IslamQA): Zakat on car, plots, shop, office and shares
- Darul Uloom Deoband (via IslamQA): Zakat on a plot
- Darul Uloom Deoband (via IslamQA): Zakat on insurance policies
- Mufti Online (via IslamQA): Zakat on provident fund contributions
- APP: Council of Islamic Ideology fixes Sadqa-i-Fitr and Fidya for Ramadan 2026
How this guide was put together
Written by Kiran Yahya for the Momina Cheema Foundation on 2 November 2026, after reading the leading guides on Zakat and sadaqah, the hadith collections cited above, the 2026 nisab notification and State Bank circular, and bank guidance on CZ-50. Religious rulings are attributed to their sources, and differences between the schools of thought are noted where they exist.
