I’d like to know if we must pay zakah on money given by the government for disability.
In the name of Allah, the most Beneficent, the most Merciful.
Zakat is compulsory upon a person who possesses the quantum of nisab (i.e. 612.35 grams of silver or 87.47 grams of gold or currency, wealth equivalent to that amount) for a complete lunar year; which is over and above his basic needs and also free from debts. (Raddul Muhtar p.5 v.2)
Therefore if an individual has in his possession wealth which is free from his basic needs and this amount after deduction of liabilities exceeds the quantum of nisaab then it will be compulsory to pay zakat (2.5%) upon passing of a complete lunar year.
Regarding your question, when you receive money from the government for disability then this comes into possession and ownership, hence, you will have to give Zakat on it.
Only Allah Knows Best
Mohammed Tosir Miah
Darul Ifta Birmingham