Re: Calculating Zakat on Salary
Question:
I have read on your website that the rate of zakat on salary is 10%, and not 2.5%. Would you please give references/logic for that?
Response:
The logic of 10% Zakat on salary is that it is like production. We render/produce our services for which we get salaries every month. We are expected to pay Zakat immediately after we get the reward for our services as the farmer is expected to pay Zakat (Ushr) the same day when he harvests his crop.
2.5% Zakat is applicable on wealth every year. Our salary is not the additional wealth that we keep over and above our needs. It is what we earn and therefore, in my opinion, needs to be treated as an earning/producing unit.
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