How to calculate zakat on gold in Pakistan: the nisab (87.48g / 7.5 tola), the 2.5% rate, the lunar year rule, and a worked example per tola.
If you own gold, one of the most common questions is whether zakat is due on it.
The answer is generally yes. Gold is one of the forms of wealth on which zakat may become obligatory, provided certain conditions are met.
Those conditions include reaching the nisab (the minimum threshold for zakat) and owning wealth above that threshold for one complete Islamic lunar year. Once zakat becomes due, it is generally calculated at 2.5% of the current market value of your zakatable wealth.
Here's how to calculate it. In Pakistan, gold is usually quoted per tola, so the examples below use both grams and tola.
Nisab is the minimum amount of wealth a Muslim must own before zakat becomes obligatory.
If you're looking at gold on its own, the gold nisab is:
In practice, however, zakat is usually assessed on your total zakatable wealth, not on gold in isolation. This may include cash, bank balances, savings, gold, silver and other zakatable assets.
Many contemporary scholars recommend using the silver nisab when assessing overall zakat, because it sets a lower threshold and benefits more people in need. Others continue to use the gold nisab. If you're unsure which approach applies to your circumstances, it's best to consult a qualified scholar.
Zakat generally becomes due once your wealth has remained above the applicable nisab for one complete Islamic lunar year (approximately 354 days).
If your wealth falls below the nisab during that period, the ruling may differ depending on your circumstances and the scholarly opinion you follow. If you're unsure, seek guidance from a qualified scholar.
Once you've established that zakat is due, calculate the current market value of your gold.
If you own 24K gold, use the current market price for 24K gold. If you own gold jewellery, its karat (purity) should be taken into account when determining its value for zakat.
The important point is that zakat is calculated using today's market value, not what you originally paid.
Multiply the current value of your gold by 2.5% (0.025). That amount is your zakat.
Suppose you own 5 tola of 24K gold.
If the market price is Rs. 433,000 per tola, your gold would be worth approximately Rs. 2,165,000.
Your zakat would be: Rs. 2,165,000 × 2.5% = Rs. 54,125.
The figures above are for illustration only. Always use the current market value of your gold when calculating zakat.
For most scholars, the answer is yes. Gold jewellery is generally included when calculating zakat based on its gold content.
There is, however, a recognised difference of scholarly opinion regarding jewellery kept for personal use. Some scholars consider it zakatable, while others do not.
If this applies to you, it's worth speaking to a qualified scholar whose opinion you trust.
Common mistakes include:
If you save through Asasa, what your gold is worth is always visible in the app, making it easier to work out the current market price when calculating zakat.
Asasa provides information to help you understand your holdings, but it does not calculate or determine your zakat obligation. If you're unsure about your circumstances, we encourage you to consult a qualified scholar.
The gold nisab is 87.48 grams, or approximately 7.5 tola. However, zakat is usually assessed on your total zakatable wealth rather than gold alone, and many scholars use the silver nisab when determining whether zakat is due.
Zakat is 2.5% of its current market value. For example, if a tola of 24K gold is worth about Rs. 433,000, the zakat due would be roughly Rs. 10,825. The exact amount changes with the price of gold, so always use the rate on the day your zakat becomes due.
Most scholars say yes, although there is a recognised difference of opinion regarding jewellery kept for personal use.
Generally, zakat becomes due once your wealth has remained above the applicable nisab for one complete Islamic lunar year (approximately 354 days).