How is Zakaat calculated on one's monthly salary?

Answer

Zakaat is paid annually, not monthly. It is not deducted from one's monthly salary. After 12 months Zakaat should be paid on the total cash, gold, silver, savings and stock-in-trade one has. Zakaat is not paid on monies which have been spent during the course of the year.

Every person should have a Zakaat year which begins from the time one has the minimum amount called the Zakaat Nisaab. The Zakaat Nisaab is the price of 19.6 ounces of silver. This price could be ascertained from a jeweller at your end. Assuming that the Zakaat Nisaab is $400, then from the day you have $400 you will be a person of Nisaab. Now whether this amount decreases during the course of the next 12 months or not, you remain a man of Nisaab. After twelve months from the date you became Maalik -e-Nisaab (the owner of Nisaab), you have to add up all your cash, savings, gold and silver, deduct from this total the debts you owe, then pay 2.5% Zakaat on the balance.