What is Zakat on gold, and what is meant by ‘worn gold’? What is the Islamic ruling on Zakat for worn gold? These questions and more occupy the minds of many, who seek comprehensive answers to find peace in fulfilling its rulings and complying with Allah’s word.
In this article, you will read about worn gold and become acquainted with all the Islamic rulings regarding gold, its quorum (minimum amount for Zakat eligibility), and other related Islamic matters. By the end of it, you will have obtained all the answers that concern you in this matter.
Zakat: Its Linguistic and Shariah Meaning
Before delving into the specifics of zakat on worn gold, let’s refresh your understanding of zakat from both a linguistic and religious standpoint. Linguistically, zakat means growth or increase, referring to the augmentation of the wealth on which it is due. In religious terms, it represents a form of worship and a means of getting closer to Allah through allocating a portion of wealth for a specific cause.
It’s vital to remember that zakat is one of the five pillars of Islam, mandated by Allah for every Muslim man and woman, with numerous evidences in the Quran and Sunnah.
What is Worn Gold and Is Its Zakat Mandatory?
Worn gold generally includes all gold jewelry worn for adornment, or gold purchased with this intention. Most scholars agree that if gold is purchased for adornment, without any intention of trading or saving, it does not require zakat. However, some have argued for the obligation of paying Zakat based on a prophetic tradition reported by Abu Dawood. It’s a narration from Aisha – may Allah be pleased with her – with an authentic chain of transmission. She said: ‘The Prophet of Allah ﷺ entered upon me while I had silver trinkets in my hand and said: ‘What is this, O Aisha?’ I replied, ‘I made them to beautify myself for you, O Prophet of Allah.’ He asked, ‘Do you pay their Zakat?’ I said, ‘No, or whatever Allah wills.’ He said: ‘It is sufficient for you from the Fire.’ Al-Hakim authenticated this tradition, as mentioned by Hafiz Ibn Rajab in Bulugh al-Maram. The term ‘Waraq’ in this context refers to silver.”.
Prophetic Guidance on Zakat for Worn Gold
A hadith from the Prophet Muhammad (peace be upon him) discusses worn gold:
Umm Salamah – may Allah be pleased with her – who used to wear gold ornaments, asked, ‘Is this considered hoarding, O Prophet of Allah?’ The Prophet, peace and blessings be upon him, replied, ‘Whatever reaches the amount that necessitates the payment of Zakat and upon which Zakat is paid is not considered hoarding.’ This was reported by Abu Dawood and Al-Darqutni and authenticated by Al-Hakim.
Rulings on Zakat for Gold in the Four Schools of Thought and the Permanent Committee
There’s a consensus among scholars on the obligation of zakat on gold, but they differ on whether adornment gold is subject to zakat. The prevailing view is that a woman’s adornment in gold does not require zakat, as the primary purpose of its purchase is beautification, not saving or investment.
Zakat for Worn Gold According to Different Islamic Schools
Zakat on Worn Gold According to Maliki Jurisprudence
In Maliki jurisprudence, adornment jewelry, if worn by a woman for her beautification, is not subject to zakat, as agreed upon by the majority of scholars, including those following the Maliki school. This is evidenced in Imam Malik’s “Muwatta,” where it is narrated from Abdur Rahman bin Al-Qasim from his father that Aisha, the wife of Prophet Muhammad (peace be upon him), had orphaned nieces under her care who possessed jewelry, and zakat was not taken from their jewelry.
Zakat on Worn Gold According to Shafi’i Jurisprudence
In the Shafi’i school, zakat is not obligatory on jewelry owned by a woman for the purpose of adornment, even if it reaches the quorum (the minimum amount for zakat), because it is not intrinsically increasing in value like livestock and is not intended for investment. The Shafi’i stance on jewelry and its zakat extends to items not made of gold or silver: zakat is not obligatory whether owned by a woman or a man. If the jewelry is made of gold or silver but does not reach the quorum, zakat is not obligatory. However, if the jewelry is for a woman and reaches the quorum, even if plentiful, zakat is not obligatory whether it is worn regularly or not.
This ruling is also based on a hadith where two women came to the Prophet Muhammad (peace be upon him) wearing gold bracelets. He asked them, “Do you pay zakat on these?” They said, “No.” The Prophet then said, “Would you like Allah to give you bracelets of fire?” They replied, “No.” He then said, “Then pay its zakat.” Therefore, if a woman does not intend to wear the jewelry but rather to hoard it for her needs, zakat becomes obligatory on it.
Zakat on Worn Gold According to Hanbali Jurisprudence
In the apparent view of Hanbali jurisprudence, there is no zakat on a woman’s jewelry if it is what she herself wears or lends to others. Zakat in the Hanbali school is due on gold intended for trade, and on prohibited jewelry for women; that is, jewelry that is not permissible for her to wear. This also includes if a woman wears men’s jewelry that is forbidden, such as sword ornaments and belts. Zakat is also obligatory on a man’s gold bracelet and ring.
Zakat on Worn Gold According to Hanafi Jurisprudence
The Hanafi school of thought mandates zakat on worn gold, regardless of whether it is used in a permissible or forbidden manner, whether worn or not, and whether intended for beautification or saving and hoarding. This is because gold is fundamentally intended for growth and increase, in any form or manner. Gold does not require the intention of trade or hoarding to be zakat, as it is inherently considered a form of wealth for transaction, exchange, and growth. Therefore, its usage does not exempt it from zakat. This ruling is based on the general texts in the Quran and Hadiths, which mandate zakat on gold without distinguishing between different types
Imam Al-Kasani Al-Hanafi stated: ‘Ornaments are considered surplus wealth beyond basic necessities, as the preparation for beautification and adornment indicates excess over primary needs. Thus, it becomes a blessing that enables one to enjoy luxury, obligating the expression of gratitude by allocating a portion of it to the poor… Whether one holds it for trade, expenditure, adornment, or without any specific intention. This is from “Bada’i al-Sana’i fi Tartib al-Shara’i” (Vol. 2, Page 17, 2nd Edition, Dar al-Kutub al-‘Ilmiyyah)..'”.
Zakat on Worn Gold According to the Permanent Committee
According to the dominant opinions among scholars as advised by the Permanent Committee, zakat is due on worn gold or silver when it reaches the quorum (the minimum amount for zakat obligation). There is a difference of opinion among scholars, with some viewing zakat as obligatory on such items, while others do not. The authoritative opinion we issue as a fatwa (religious ruling) is that zakat is due when the quorum is reached, regardless of whether the item is a bracelet, necklace, or other jewelry.
Once the quorum is reached, whether in gold or silver, it becomes zakat. The prevailing opinion is that zakat is due on gold and silver jewelry if they reach the quorum and a lunar year has passed. The quorum for gold is twenty mithqals, equivalent to eleven and a half Saudi Riyals, and for silver, it is one hundred and forty mithqals, which equates to fifty-six Saudi Riyals in silver, or its equivalent in other currencies.
Criteria for Zakat on Worn Gold
For worn gold to be subject to zakat, it must:
- Complete a lunar year in possession.
- Be owned entirely, without shared ownership.
- Not be intended for trade or wealth growth.
The Quorum for Worn Gold
Scholars differ on the quorum for worn gold, but if zakat is applicable, it is generally due on 20 mithqals, equivalent to 85 grams of pure gold.
In other words, if the amount of gold reaches the quorum, which is estimated at 85 grams of 24-karat gold, and a lunar year has elapsed since its purchase, then a quarter of a tenth, equivalent to 2.5% of the value of the worn gold, is required to be paid as zakat.
Calculating and Paying Zakat on Gold
To calculate zakat on gold, determine the gold’s market value on the zakat due date and divide it by 40. For example, if you possess 100 grams of gold, zakat would be 2.5 grams of gold.
Zakat on worn gold can be given in gold or its cash equivalent, with scholars permitting monetary disbursement to the needy or Islamic charitable organizations.
Your zakat contributions for worn gold can support the education of Syrian children through the Masarat Initiative. This initiative offers free educational services to disadvantaged Syrian students, focusing on orphans, children with special needs, those who have been out of education for extended periods, and those living in displacement camps. The initiative operates through four main programs: School Education, Student Activities, Academic Advising, and Vocational Training.
Your donations can significantly impact these students’ lives, paving the way for a brighter future. Every contribution carries the potential for their success and hope. Join us today in nurturing a generation that can transform their society and achieve their dreams.