What zakat is
Zakat is one of the five pillars of Islam: a yearly obligation on qualifying Muslims to give a portion of their wealth to those in need. It purifies wealth and reminds us that what we own is a trust. Gold jewellery is one of the most common forms of wealth on which zakat becomes due, which is why so many Pakistani families ask about it every year, especially before Ramadan.
This guide explains the basics as they apply to gold jewellery. It is informational only. For your personal situation, please confirm with a trusted scholar.
The nisab: when zakat becomes due
Zakat becomes obligatory when your zakatable wealth reaches the nisab, the minimum threshold, and you have held it for one lunar year. For gold, the nisab is 87.48 grams of pure gold (7.5 tola).
Note the word “pure.” If your jewellery is 22K or 21K rather than 24K, scholars generally calculate based on the actual gold content, not the total weight. So 100 grams of 22K jewellery contains about 91.7 grams of pure gold, which is above the nisab. Your jeweller can help you determine the pure gold content of your pieces.
If your total zakatable wealth, including gold, silver, cash, and savings, reaches the nisab, zakat is due on all of it.
The rate: 2.5% of market value
The zakat rate on gold is 2.5% of its current market value. The value used is the market value on the day you pay zakat, not the price you originally paid for the jewellery. Gold prices move, so check the current rate when your zakat becomes due.
How to calculate: step by step
- Weigh your gold jewellery. Add up the weight of all your gold pieces. Your jeweller can weigh them accurately if you do not have a scale.
- Adjust for purity. Convert to pure gold content. For 22K, multiply by 0.917. For 21K, multiply by 0.875. For 18K, multiply by 0.75.
- Exclude stones and non-gold weight. The weight of diamonds, gemstones, pearls, and any non-gold settings is excluded. Only the gold itself counts.
- Check the nisab. If the pure gold weight is 87.48 grams (7.5 tola) or more (combined with your other zakatable wealth), zakat is due.
- Find the current gold value. Use the market rate on the day you pay.
- Calculate 2.5%. Multiply the total gold value by 0.025.
Worked example (sample figures only)
Suppose you own 120 grams of 22K gold jewellery with stones weighing 10 grams.
- Gold weight excluding stones: 120 - 10 = 110 grams
- Pure gold content: 110 x 0.917 = approximately 100.9 grams (above the 87.48g nisab)
- Sample gold rate: PKR 20,000 per gram (SAMPLE rate for illustration only, not a real price)
- Total gold value: 100.9 x 20,000 = PKR 2,018,000
- Zakat due: 2,018,000 x 2.5% = PKR 50,450
This is only an illustration. Always use the actual market rate on your zakat day.
Doing the maths? Our zakat calculator values your gold, silver, and cash at live rates and works out the 2.5% for you.
Jewellery with stones
Diamonds, gemstones, and pearls set in your gold jewellery are excluded from the zakat calculation. Only the gold portion counts. This is why step 3 above matters: have the stone weight estimated and subtract it. An experienced jeweller can estimate stone weight for common settings.
If a piece is gold-plated or the stones dominate the value, different rulings may apply. This is exactly the kind of detail worth raising with a scholar.
Common questions
Is zakat due on jewellery I wear daily? This is one of the most asked questions, and scholars differ. Many scholars hold that zakat is due on all gold above nisab whether worn or stored, while others exempt jewellery in regular personal use. Because opinions differ, this is a question for your trusted scholar, not for a jewellery website.
Do I pay zakat on gold I intend to give as dowry or gifts? If the gold is in your possession and your ownership is complete, it generally counts toward your zakatable wealth. Once gifted and ownership transfers, it becomes the recipient’s concern.
What if my gold is below nisab but I have cash savings too? Gold, silver, cash, and trade goods are generally combined when checking the nisab. Add them together. If the total reaches the threshold, zakat is due on the whole amount.
Should I sell gold to pay zakat? You do not need to sell your jewellery. Zakat can be paid in cash equivalent to 2.5% of the gold’s value. Most people pay from savings or income.
A note on responsibility
Zakat is an act of worship before it is a calculation. The figures above give you the mechanics: the approximately 85-gram nisab, the 2.5% rate, the exclusion of stones, and valuation on the day of payment. But rulings on worn jewellery, mixed assets, and personal circumstances deserve proper scholarship. Please confirm your nisab and your calculation with a trusted scholar or your local imam before paying.