Answered by Shaykh Abu Usamah
I live in the UK and I’m saving money (a large part of my salary) each month so that I can buy my first house. What I would like to know is would I have to pay Zakat on this money?
Al-Salam `Alaykum
Yes, Zakah will have to be paid at the rate of 2.5% on the full amount you possess on your Zakah calculation date i.e. the Islamic date that you first became the owner of the total Nisab* amount. It is not necessary that one year has to pass on each month’s salary but one year after you first became the owner of the Zakah Nisab, Zakah becomes payable on the full amount you possess at the Zakah calculation date.
E.g.
:: 3 Muharram 1424 : You became the owner of $500 (which is above the nisab and this is the first time you possessed this amount)
:: Every month on the 1st you receive $500
:: 3 Muharram 1425 you now have $6000
Zakah is payable on $6000 at the rate of 2.5%. Thus $150 is due in Zakah.
(*Enquire about the Nisab value from your local `Ulama body.)
Abu Usama
Durban, South Africa