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A: shari'at has fixed a certain quantity or standard of valuables on possession of which zakat becomes fard. Zakat becomes fard when one owns valuables in that quantity or standard. This standard or quantity is called nisab .
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To pay zakat on stocks, one can calculate the total value of their stocks and then give 2.5 of that value as zakat. This can be done annually or whenever the value of the stocks reaches the nisab threshold.
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Yes, in Islamic finance, stocks are considered a form of wealth on which zakat must be paid if they meet the nisab (minimum threshold) and have been held for a full lunar year.
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According to two judgments of the Lahore High Court Lahore, Gratuity Fund itself is not liable to zakat. However, when payment is made to its members, it will deduct zakat if the payee is sahib-e- nisab.
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"Zakat" is a mandatory financial rite, and one of the five pillars of Islam. It must be paid by one who owns wealth or valuables of certain kinds whose values is at least to the limit of Nisab.
"Nisab" means the minimum amount fixed by Islamic shariah for certain kinds of wealth and valuables.
The Five Pillars are known in Arabic as ARKAN AL-ISLAM, the five duties incumbent on every Muslim. They are: shahadah , the Muslim profession of faith; salat , or ritual prayer, performed in a prescribed manner five times each day; zakat, the alms tax levied to benefit the poor and the needy; sawm, fasting during the month of Ramadan; and hajj, the major pilgrimage to Mecca.
Ref: TheFaithOfIslam.htm
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One of the most important principles of Islam is that all things belong to God, and that wealth is therefore held by human beings in trust.
The word Zakat means both 'purification' and 'growth'. Our possessions are purified by setting aside a proportion for those in need, and, like the pruning of plants, this cutting back balances and encourages new growth.
Zakat is the amount of money that every adult, mentally stable, free, and financially able Muslim, male and female, has to pay to support specific categories people.
This category of people is defined in surah at-Taubah (9) verse 60: "The alms are only for the poor and the needy, and those who collect them, and those whose hearts are to be reconciled, and to free the captives and the debtors, and for the cause of Allah, and (for) the wayfarers; a duty imposed by Allah. Allah is knower, Wise." (The Holy Qur'an 9:60).
The obligatory nature of Zakat is firmly established in the Qur'an, the Sunnah (or hadith), and the consensus of the companions and the Muslim scholars. Allah states in Surah at-Taubah verses 34-35: "O ye who believe! there are indeed many among the priests and anchorites, who in Falsehood devour the substance of men and hinder (them) from the way of Allah. And there are those who bury gold and silver and spend it not in the way of Allah. announce unto them a most grievous penalty - On the Day when heat will be produced out of that (wealth) in the fire of Hell, and with it will be branded their foreheads, their flanks, and their backs, their flanks, and their backs.- "This is the (treasure) which ye buried for yourselves: taste ye, then, the (treasures) ye buried!" (The Holy Qur'an 9:34-35).
It is agreed between Muslims in all the centuries the obligatory nature of paying Zakat for gold and silver, and from those the other kinds of currency.
Zakat is obligatory when a certain amount of money, called the nisab is reached or exceeded. Zakat is not obligatory if the amount owned is less than this nisab. The nisab (or minimum amount) of gold and golden currency is 20 mithqal, this is approximately 85 grams of pure gold. One mithqal is approximately 4.25 grams. The nisab of silver and silver currency is 200 dirhams, which is approximately 595 grams of pure silver. The nisab of other kinds of money and currency is to be scaled to that of gold, 85 grams of pure gold. This means that the nisab of money is the price of 85 grams of 999-type (pure) gold, on the day in which Zakat is paid. (Current Gold Prices)
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ushr is collected on compulsory basis at a rate of 5 percent of the produce from every land owner, grantee, allottee, lessee, lease-holder or land-holder (except the one excluded from the definition of sahib-e-nisab). An individual farmer is exempted from ushr if he is a "mustahiq" or if his produce is less than 948 kg of wheat or its equivalent in value.
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Zakat is not voluntary in Islam; it is one of the five pillars of Islam and an obligatory form of charity for all financially able Muslims. Muslims who meet the minimum wealth threshold, known as Nisab, are required to give a portion of their wealth to those in need.
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Giving sadaqa al-fitr becomes wajib upon every Muslim who has property or money as much as the amount of nisab in addition to his or her indispensable belongings and debts. If he or she does not have property or money as much as the amount of nisab, it does not become wajib upon him or her to give sadaqa al-fitr.
It is declared in hadith-i sharifs:
(The fast of Ramadan remains suspended between the sky and the earth. It goes up when sadaqa al-fitr is given.)[Abu Hafs]
(Sadaqa al-fitr purifies a fasting person from the sins that he incurred because of his obnoxious utterances.)[Bayhaqi]
(Sadaqa al-fitr is a means of purification for your rich ones. If your poor ones also give it, Allahu ta'ala grants them a lot more than what they have given.) [Abu Dawud]
According to the other madhahib, giving sadaqa al-fitr is fard (obligatory) upon a person who has a day's food. A hadith-i sharif says, "Everyone, young or old, rich or poor, must give sadaqa al-fitr" (Abu Dawud).
Any person who does not meet the conditions specified by Islam to be considered rich can receive sadaqa al-fitr and zakat (obligatory alms). Giving sadaqa al-fitrbecomes wajib upon every Muslim who has property or money as much as the amount of nisab in addition to his or her indispensable belongings and debts. It is haram for such a person to receive sadaqa al-fitr or zakat. The property that is to be included into the calculation for sadaqa al-fitr does not necessarily have to be intended for trade, nor does one have to have had it for one year.
Richness that is known by the public is different from richness defined by Islam. One who does have property or money as much as the amount of nisab is considered poor by Islam. If one who does not own a house or who lives in a rented house has money or gold or commercial property as much as the amount of nisab, one is considered rich by Islam. Such a person must pay zakat and is not permitted to receive zakat.
Zakat is not paid for property that is not for trade, but income from such kinds of property is included into the calculation of nisab.
Those who do not have money or property as much as the amount of nisab are considered poor. Such people can receive zakat. If those with minimum salaries have money or property as much as the amount of nisab after they deduct their debts, they are considered rich and must pay sadaqa al-fitr. [The amount of nisab is 96 grams of gold, or its money or commercial property equivalent.]
Sadaqa al-fitr is given in the holy month of Ramadan. Though it is also permissible to give it before Ramadan or after the Eid, there will be more blessings if it is given before the Eid prayer. It cannot be given before Ramadan in the Shafi'i Madhhab, and it cannot be postponed until after the Eid, either. One who cannot fast because of a good excuse, such as illness, must pay the sadaqa al-fitr if one is rich.
One cannot pay sadaqa al-fitr to one's parents, to any of one's grandfathers or grandmothers, to one's own children or grandchildren, to one's wife, or to a disbeliever. It is permissible to pay sadaqa al-fitr to one's poor daughter-in-law, son-in-law, mother-in-law, father-in-law, brother-in-law, or stepchild. It is a lot more rewarding to give sadaqa al-fitr to such relatives as one's paternal aunt, paternal uncle, maternal aunt, or maternal uncle. According to Imamayn (Imam-i Muhammad and Imam-i Abu Yusuf), a woman can give sadaqa al-fitr to her indebted and poor husband. (Mawkufat)
The amount of sadaqa al-fitr to be paid does not vary from year to year. For sadaqa al-fitr, half a sa' of wheat or flour is given. Or one sa' of barley or dates or raisins is given. Half a sa' is a measure that equals 1750 grams circumspectly. One sa' equals 3500 grams. These amounts do not ever change until Doomsday. For sadaqa al-fitr, wheat or flour or barley or dates or raisins are given. Or it is also permissible to give their gold or silver equivalents. If it is difficult also to give wheat or flour or the other foodstuffs, one may give bread or corns of equal value.
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to understand the answer better, please look at meanings of the Islamic words:
fitra: alms (2 kg of wheat or silver of equal value) given after every Ramadan, the ninth month of Muslim calendar.
wajib: (act, thing) never omitted by the Prophet, so almost as compulsory as fard and not to be omitted. Wajib al-wujud: Being whose existence is indispensable and nonexistence is impossible.
nisab: minimum quantity of specified wealth which makes one liable to do some certain duties.
madhhab: all of what a profound 'alim of (especially) Fiqh (usually one of the four-Hanafi, Shafi'i, Maliki, Hanbali) or iman (one of the two, namely Ash-ari, Maturidi) communicated.
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الحمد لله والصلاة والسلام على رسول الله
Both Zakah and Hajj only become obligatory depending on one's finanial situation.
Zakah becomes Fard (obligatory) if a sane Muslim adult possesses the Nisab amount, which is 87.48 grams of gold or 612.36 grams of silver, and it must be in one's possession for one lunar calendar year.
Hajj does not become obligatory if one does not possess enough money to cover the costs of Hajj, including going to and coming from Makkah, and also once you return you should have enough money for your daily expenses.
And Allah Ta'ala knows best
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Zakah is obligatory on Muslims who owns wealth equivalent or more the nisab level. It is 85g pure gold or 595g pure silver or money equivalent to gold/silver. Rate of zakah is 2.5% paid yearly, based on lunar year. This is the basics of Zakah. It should given to poor people such a way that the same person do not qualify to receive zakah the following year (not poor enough to receive it). A significant amount should be give to an individual so the person is be able help him/her self. Zakah should be collected by the state or community then given to poor so, that the giver of zakah do not know the receiver of zakah; to ensure the dignity and self-respect of the receiver
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There are the mandatory zakat which is 2 1/2% of ones yearly savings paid to a masjid or Islamic organization for distribution. Then there is voluntary charity called sadaqat which can be paid to anyone, at any time in any amount. Even a smile of kind deed can be sadat. Then there is zakatul fitr which is the charity given at the end of Ramadan or day of the Eidul Fitr (Feast of Fastbreaking) to purify ones fast and ask that it be accepted. The nisab (amount) is usually $10 per family member. Hope this helps
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Zakāt is the Islamic concept of tithing and alms. It is an obligation on Muslims to pay 2.5% of their wealth to specified categories in society when their annual wealth exceeds a minimum level (nisab). Zakāt is one of the Five Pillars of Islam. There are eight categories of people who may receive the collected Zakat: * Poor people (if they do not have enough to cover their basic needs) * The Destitute (those with no property or income at all) * The Collectors * People Whose Hearts are to be Reconciled (Normally new Muslims or those close to becoming Muslim. Even non-muslims could be included) * Freeing Slaves * Debtors (to help those heavily indebted with paying their debts) * Travellers (who find themselves in difficult circumstances) It is one of the basic principles of Muslim economy, based on social welfare and fair distribution of wealth. There have been cases where you can't pay zakat for * Traditional zakat laws generally do not cover trade. * It is not permissible to pay zakat to some members of the family (i.e. grandparents, parents, spouses, children), for if they were needy or poor, they are under the custody of the eligible man while Zakat is considered a sort of Public Charity. * Zakat doesn't become obligatory on a Muslim if he doesn't have a minimum amount in his possession that has remained unchanged for a whole lunar year; any increase in that money during the year waits for the following year and any decrease as long as the total amount is still above the minimum amount is exempted.
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Zakat or alms-giving is the practice of charitable giving by Muslims based on accumulated wealth, and is obligatory for all who are able to do so. It is considered to be a personal responsibility for Muslims to ease economic hardship for others and eliminate inequality.
Zakat consists of spending 2.5% of one's wealth for the benefit of the poor or needy, including slaves, debtors and travelers. A Muslim may also donate more as an act of voluntary charity (sadaqah), in order to achieve additional divine reward.
There are two main types of Zakah:
There are four principles that should be followed when giving the Zakah:
1. The giver must declare to Allah his intention to give the Zakah.
2. The Zakah must be paid on the day that it is due. It could be arranged to pay it within certain Hijra month every year.
3. Payment must be in kind. This means if one has a lot of money then he needs to pay 2.5% of his income. If he does not have much money, he needs to pay in a different way. For example, if he has a lot of cattle, then he pays in cattle instead of money.
4. Some say (not sure personally) that the Zakah must be distributed in the community from which it was taken.
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It is an obligation on Muslims to pay 1/40 (2.5%) of the wealth which they have had for a full lunar year, 1/40 (2.5%) of goods used for trade, and 5% or 10% of certain type of harvests depending on irrigation. Exempt from Zakat are a person's house and personal transportation.
Zakat is not mandatory on harvest if the total did not reach the minimum limit (nisāb) of about 653 kilograms of crops[7], nor on gold amounts if the owner has less than 85 grams of gold or less than 595 grams of silver.[8]
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there are 8 categories mentioned in the following verse of the quraan :"The alms are only for the Fuqara' (the poor), and Al-Masakeen (the needy) and those employed to collect (the funds); and to attract the hearts of those who have been inclined (towards Islam); and to free the captives; and for those in debt; and for Allah's Cause, and for the wayfarer (a traveler who is cut off from everything); a duty imposed by Allah. And Allah is All-Knower, All-Wise." [Al-Quran -9:60]
The eight categories mentioned in the verse above are:
reference : http://www.hidaya.org/social-welfare/zakat---alms/who-receives-zakat.HTML
and Allah knows best
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Islam teaches us if we make enough for our sustenance and have a lil more extra bugs, we can give this to the poor and the needy in order that they for whom the daily bread butter/dal roti is tough, they can benefit from it
its simple to calculate zakat if you live in the US like me then as per RTT news
price of gold in US as of may 2011 is 1530 USD for 1 ounce , now as per the sunni system if ur wealth is worth 7.5 grams of gold or more then zakid is compulsory on you so in order to know who qualifies for zakat and who deserves it is done via gold by most as :
converting 1 ounce into grams , 1 ounce = 30 grams so the math would be something like :
1530usd ------ 30 gms
x usd--------85 gms
so x = 1530 *85/30 = 4335 so if u make more then 4335 dollars of saving an year in America , 2.5 percent of ur annual saving has to go to zakat , so say of the 40000 dollars u saved 1000 dollars at the end of the year then ur zakat is (edit: i didnt add the fixed asset here, so by adding fixed assets it should be even less an amount then 382.5 for u to qualify, however the formula below still stands true) :
(ur fixed assets + annual earnings saved)*2.5/100 = 25 so u are obliged to give this money to make ur money pak of the evil spiritually inshallah this benefits the seeker if any
remember 4335 shouldnt be in cash only, it can be any asset u buy or assets with cash too (if the price of gold is so else it would be as per Golds price)
salam walaikum WA rehmatuallah he WA barakatuhu
correction: i by mistake mention 7.5 before, nisab level is 85 grams of golden on checking sorry astakfiruallah for making a mistake, so anyone who has an annual saving of 4335 (if given price of gold applies, else u can use the formula and calculate) or above n one lunar calendar passes him, he is eligible to pay 2.5 of it as Zakat bi iznillah
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Forgive me for interjecting, but I just want to add for the sake of the question that:
The main articles of doctrine in Islam are two. They are the Noble Quran (Actual Literal Speech and Wisdom of Allah) written in book format, as well as the Sunnah (practices, teachings, habits, approvals, disapproval, of the Messenger of Allah called "hadith" (narrations) which have been collected and put in book format.
Refer to related question listed below for more information.
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The prime doctrines, also known as the 5 pillars are-
1. Shahadah-The belief in one god(Allah) and that Muhammad is his messenger and prophet. This is by far the most important pillar in Islam. As the most important pillar, this testament is a foundation for all other beliefs and practices in Islam. Ideally, it is the first words a newborn will hear, and children are taught as soon as they are able to understand it and it will be recited when they die. Muslims must repeat the shahadah in prayer, and non-Muslims wishing to convert to Islam are required to recite the creed. Technically the Shi'a do not consider the Shahadah to be a separate pillar, but connect it to the
2.Salah-Prayer is performed facing towards the Kaaba in Mecca. Salah is intended to focus the mind on Allah; it is seen as a personal communication with Allah, expressing gratitude and worship. According to the Qur'an, the benefit of prayer "restrains [one] from shameful and evil deeds".[Qur'an 29:40] Salah is to be performed five times a day and it is compulsory but some flexibility in the specifics is allowed depending on the circumstances. For example, in the case of sickness or a lack of space, a worshipper can offer salah while sitting, or even lying down, and the prayer can be shortened when travelling. The salah must be performed in the Arabic language to the best of each worshipper's ability. If he/she cannot speak Arabic, then his/her native language can be used. The lines of prayer are to be recited by heart (although beginners may use written aids), and the worshipper's body and clothing, as well as the place of prayer, must be cleansed.
3.Zakah- or alms-giving, is the practice of charitable giving by Muslims based on accumulated wealth, and is obligatory for all who are able to do so. It is considered to be a personal responsibility for Muslims to ease economic hardship for others and eliminate inequality.[7] Zakah consists of spending a fixed portion of one's wealth for the benefit of the poor or needy, including slaves, debtors and travellers. A Muslim may also donate more as an act of voluntary charity (sadaqah), in order to achieve additional divine reward. There are two main types of zakah. First, there is the zakah on traffic, which is a fixed amount based on the cost of food that is paid during the month of Ramadan by the head of a family for himself and his dependents. Second, there is the zakah on wealth, which covers money made in business, savings, income, and so on. In current usage zakah is treated as a 2.5% levy on most valuables and savings held for a full lunar year, as long as the total value is more than a basic minimum known as nisab (three ounces or 87.48g of gold). As of 16 October 2006, nisab is approximately US$1,750 or an equivalent amount in any other currency. Many Shi'ites are expected to pay an additional amount in the form of a khums tax, which they consider to be a separate ritual practice.
4.Sawm-Three types of fasting (Sawm) are recognized by the Qur'an: Ritual fasting,[2:183-187] fasting as compensation or repentance,[2:196] and ascetic fasting.[33:35]Ritual fasting is an obligatory act during the month of Ramadan Muslims must abstain from food, drink, and sexual intercourse from dawn to dusk during this month, and are to be especially mindful of other sins. The fast is meant to allow Muslims to seek nearness to Allah, to express their gratitude to and dependence on him, to atone for their past sins, and to remind them of the needy.[14] During Ramadan, Muslims are also expected to put more effort into following the teachings of Islam by refraining from violence, anger, envy, greed, lust, harsh language, gossip and to try to get along with each other better than normal. In addition, all obscene and irreligious sights and sounds are to be avoided. Fasting during Ramadan is not obligatory, and even forbidden in some cases, for several groups for whom it would be dangerous or excessively problematic. These include pre-pubescent children, those with a medical condition such as diabetes, elderly people, and pregnant or breastfeeding women. Observing fasts is not permitted for menstruating women. Other individuals for whom it is considered acceptable not to fast are those in combat and travellers. Missing fasts usually must be made up soon afterwards, although the exact requirements vary according to circumstance. Many Muslims break their fast with a date because it is claimed Muhammed broke his fast with a date
5.Hajj- The Hajj is a pilgrimage that occurs during the Islamic month of Dhu al-Hijjah to the holy city of Mecca, and derives from an ancient Arab practice. Every able-bodied Muslim is obliged to make the pilgrimage to Mecca at least once in their lifetime if they can afford it.[20] When the pilgrim is around ten kilometers from Mecca, he must dress in Ihram clothing, which consists of two white sheets.[21] The main rituals of the Hajj include walking seven times around the Kaaba, touching the Black Stone, traveling seven times between Mount Safa and Mount Marwah, and symbolically stoning the Devil in Mina. The hajj also includes a visit to Medina, the second holiest city of Islam. The pilgrim, or the haji, is honoured in their community. For some, this is an incentive to perform the Hajj. Islamic teachers say that the Hajj should be an expression of devotion to Allah, not a means to gain social standing. The believer should be self-aware and examine their intentions in performing the pilgrimage. This should lead to constant striving for self-improvementA pilgrimage made at any time other than the Hajj season is called an Umrah, and while not mandatory is strongly encouraged.
After the Prophet Muhammad (S)'s death many desert nomads and others claimed to be prophets, during this time Abu Bakr (R) went to war with these people to prove them as false. After Abu Bakr (R), Umr (R) took over Persia, and other parts of Asia Minor, after many years Tariq bin Ziyad (R) took over Spain and Islam slowly traveled though Europe.
You can also check out resources for the Ottoman Empire.
What is Islam?: The name of the religion is Islam, which comes from an Arabic root word meaning "peace" and "submission." Islam teaches that one can only find peace in one's life by submitting to Almighty God (Allah) in heart, soul and deed. The same Arabic root word gives us "Salaam alaykum," ("Peace be with you"), the universal Muslim greeting.
Who is a Muslim?: A person who believes in and consciously follows Islam is called a Muslim, also from the same root word. So, the religion is called "Islam," and a person who believes in and follows it is a "Muslim."
How Many and Where?: Islam is a major world religion, with over 1 billion followers worldwide (1/5 of the world population). It is considered one of the Abrahamic, monotheistic faiths, along with Judaism and Christianity. Although usually associated with the Arabs of the Middle East, less than 10% of Muslims are in fact Arab. Muslims are found all over the world, of every nation, color and race.
Who is Allah?: Allah is the proper name for Almighty God, and is often translated merely as "God." Allah has other names that are used to describe His characteristics: the Creator, the Sustainer, the Merciful, the Compassionate, etc.
Muslims believe that since Allah alone is the Creator, it is He alone that deserves our devout love and worship. Islam holds to a strict monotheism. Any worship and prayers directed at saints, prophets, other human beings or nature is considered idolatry.
What do Muslims believe about God, prophets, the afterlife, etc.?: The basic beliefs of Muslims fall into six main categories, which are known as the "Articles of Faith":
The "five pillars" of Islam: In Islam, faith and good works go hand-in-hand. A mere verbal declaration of faith is not enough, for belief in Allah makes obedience to Him a duty.
The Muslim concept of worship is very broad. Muslims consider everything they do in life to be an act of worship, if it is done according to Allah's guidance. There are also five formal acts of worship which help strengthen a Muslim's faith and obedience. They are often called the "Five Pillars of Islam."
Daily life as a Muslim: While often seen as a radical or extreme religion, Muslims consider Islam to be the middle road. Muslims do not live life with complete disregard for God or religious matters, but nor do they neglect the world to devote themselves solely to worship and prayer. Muslims strike a balance by fulfilling the obligations of and enjoying this life, while always mindful of their duties to Allah and to others.
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Zakah is an annual tax, at the end of the year a Muslim gives a percentage of what she or he has left to a collecter, who then gives it to a needy cause
Zakah is when u have to give 2.5% of your income for the year to Allah this is called Zakah. If poor people havent got extra money then they don't have to pay, but people (rich) who have money left must may Zakah.
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Work and Wealth
Western tradition regards work and labor as a cost incurred by those who want to consume the goods thus made available to them. The natural condition of mankind is considered to be one in which the earth will not satisfy human needs except when human beings work to make it do so. It is neither a logical nor an inevitable corollary of this view that less work is preferable to more. Even in this tradition, it is logically possible that some work is much more agreeable than others, and perhaps so much so that some work ceases to be a cost incurred in satisfying wants. It is, however, usual for this point to be ignored, particularly since an assumption common to economists from the nineteenth century onwards - and most explicit in the ideas of utilitarianism - is that efficiency and disagreeableness increase together, and that paid labor cannot be expected to offer much intrinsic satisfaction.
The concept of work in Islam (called 'amal) is far broader and has different characteristics and objectives than that understood in the Western economic tradition. In Islam, work ethic is defined by the Quran itself, which mentions the word 'amal in 360 verses. A closely related concept of fi'l (also translated as work) is mentioned in an additional 109 verses. All these verses stress the need for work and action by human beings. It is based on this emphasis on work that Islam is considered as the ideology of practice and the practice of ideology, a religion of action, and "the par axis of the believers."[1] The Quran considers idleness - or squandering of time in pursuit of unproductive and non-beneficial work - as the manifestation of lack of faith and of unbelief.[2] Man is called upon to utilize "time" in pursuit of work by declaring that God has made the day as means of seeking sustenance. A person who through hard work seeks God's "bounty" - which includes all appropriate means of earning one's livelihood - is most highly praised. All able-bodied persons are exhorted to work in order to earn their living. No one who is physically and mentally able is allowed to become a liability on one's family or the state through idleness. The work which everyone is required to perform must be "good" or "beneficial" (al-'amal al-salih), but no work is considered as inconsequential in terms of its rewards or punishments in this world and in the next. One will have to reap whatever rewards or retributions are done as a result of his work. (Quran 99:6-8).
Work, therefore, is regarded not only as a right but a duty and an obligation. Islam extends to the individual the right to choose the type of work he desires, but along with this freedom comes the obligation to consider the needs of the society as well as the selection of the type of work permitted by the Shariah.
Since all class distinctions are negated by Islam, no line of work permissible by the Shariah is considered demeaning by Islam, which countenances only diversification on the basis of natural talents, skills and technology, or personal inclinations. Based on its concepts of justice and contracts, Islam makes it an obligation for the worker to perform the tasks which he has contracted to the best of his ability, but since individuals are endowed with different abilities and talents, their productivities will differ. Justice, however, demands that return to work of every individual must be commensurate with his productivity.
While Islam, in no uncertain terms, is against idleness and socially unproductive work, it maintains that those who are physically or mentally unable to work still retain a right to what the society produces.[3] This conclusion is based on the property-rights principle of invariant claim to ownership which maintains that all human beings have a right in the resources which God has provided for mankind. Since the source of physical and mental abilities of human beings, due to which some members of the society are able to possess more than others, is also God, the right of ownership of those less able to the original resources remains valid; just as God's original right of ownership of resources is not negated when they, along with the creative labor of individuals, are transformed into products, property and wealth.
Earlier, it was mentioned that laboring and owning are central to the Islamic concept of property rights. Islam encourages man to utilize, to the fullest possible sense, all the resources that God has created and entrusted to man for his use responsibly. Non-utilization of these resources for his benefit and for that of the society is tantamount to ungratefulness to God's provision of these resources as is irresponsibility and extravagance. Wealth is considered an important means by which man can pave the way for the attainment of his ultimate objective. Islam refers to wealth as "good", an object of delight and pleasure, and a support for the community.[4] Conversely, involuntary poverty is considered as undesirable. This particular conception of wealth, however, is qualified in terms of earning, possession and disposition of wealth.
The earning of wealth is qualified through the emphasis on the fact that wealth is only a means for the achievement of man's ultimate objective and not an end in itself. It must be earned through "good", "productive" and "beneficial" work. This type of work is specified by the Shariah which defines the methods of earning wealth lawfully, not only are lawful methods of earning wealth specified, but also the types of economic activity which are prohibited are outlined. The Shariah specifies non-permissible professions and trade and economic activity which may lead to unlawfully acquired wealth. Even within each profession, the Shariah specifies proper and improper practices. Unlawfully acquired or accumulated wealth for its own sake is condemned as "corruption" and retrogression to the basis of all human negative qualities, i.e., greed.
Islam considers wealth as the life-blood of the community which must be constantly in circulation; therefore, its possession excludes the right of hoarding (Quran 9:34-35). The implication is that lawfully earned wealth must be invested within the community to improve its economic well-being. Investing wealth is not only measured by the monetary gain associated with it, but also by the benefit which accrues to the society. The needs of the society, therefore, must be a consideration for the owner of wealth.
Disposition of wealth is subjected to the rules of the Shariah as well. The first and foremost among these rules is the recognition of the rights of others in this wealth, resulting from the principle of invariant claim to ownership.[5] Also among these rules are the levies whose amounts are specified and those levies whose amounts are left to the determination by the wealth owner. All these levies fall due when wealth exceeds a specific minimum amount called nisab. After these obligations are met, the remainder of wealth belongs to the owner but must be used in accordance with the rules of the Shariah. Among these are rules which forbid extravagance, opulence, waste or general abuse of wealth.[6] It cannot be used to harm others or to acquire political powers to corrupt the polity.
While Islam considers lawfully acquired wealth as subject to the protection of the Shariah, it regards the wealth owner as a trustee who holds his wealth as a trust on behalf of God and the community. Hence, his inability to use his wealth properly provides the basis for the forfeiture of his right to his wealth. Extravagance, waste and general abuse of wealth is the basis upon which the community can consider him a "safih", a person of weak understanding and one in possession of "weak intellect"; and a person who along with his own financial and moral loss is damaging the interest of the community. There is a principle (hajr) according to which such a person's wealth is made the ward of the community, or it's legitimate representatives, which may limit his right to use only a part of his property to meet his basic needs (Quran 4:5). That wealth, therefore, is considered "good" and a "support" for the community in attainment, possession, and disposition of which all rules of the Shariah are observed.
http://www.islamreligion.com/articles/295/
Footnotes:
[1] Esposito, John, L. (ed.), (1980), Islam and Development, Syracuse University Press.
[2] Al-Tahawi, Ibrahim, (1974) Al-Iqtisad Al-Islami, Majma' Al-Buhuth al-Islamiyah.
[3] Quran 2:110, 2:254; 9:60; 73:20; 51:19; 17:26; 17:29; 9:34-36; and 51:19.
[4] Quran 29:61; 14:32; 16:14; 45:13; 22:36-37; 2:180 and 215; 62:10; 73:20; 16:6; 17:70; and 7:32.
[5] Al-Liban (1967).
[6] Quran 2:190; 2:195; 9:34
1 answer
Dr. Zakir Naik in his book'Answers to non-Muslims common questions reply to this question as;
1. Major difference between Islam and most other religions
All religions basically exhort mankind to be righteous and eschew evil. But Islam
goes beyond that. It guides us towards practical ways of achieving righteousness and eliminating evil from our individual and collective lives. Islam
takes into account human nature and the complexities of human society. Islam
is guidance from the Creator Himself. Therefore, Islam is also called the Deenul-Fitrah (the natural religion of Man).
2. Example - Islam commands us to shun robbery and also prescribes method of eli-minating robbery
a. Islam prescribes method of eliminating robbery
All major religions teach that theft is an evil act. Islam teaches the same. So
what is the difference between Islam and the other religions? The difference
lies in the fact that Islam, besides teaching that robbing is evil, shows a practical way of creating a social structure in which people will not rob.
b. Islam prescribes Zakat
Islam prescribes a system of Zakat (obligatory annual charity). Islamic law
prescribes that every person who has a saving that exceeds the nisab level
i.e. more than 85 grams of gold, should give 2.5% of that saving every lunar
year in charity. If every rich person in the world gave Zakat sincerely, poverty will be eradicated from this world. Not a single human being would
die of hunger.
c. Chopping off the hands as punishment for robbery
Islam prescribes chopping off the hands of the convicted robber. The
Glorious Qur'an says in Surah Maidah:
"As to the thief, male or female, cut off his or her hands:a punishment
by way of example, from Allah, for their crime: and Allah is Exalted in
power, full of wisdom." [ Al-Qur'an 5:38]
The non-Muslim may say, "Chopping off the hands in this 20th century.
Islam is a barbaric and ruthless religion!"
d. Results achieved when Islamic Shariah Implemented
America is supposed to be one of the most advanced countries in the world.
Unfortunately it also has one of the highest rates of crime, theft, and robbery. Suppose the Islamic shariah is implemented in America i.e. every rich person gives Zakat ( 2.5% of his savings in charity above 85 grams of gold every lunar year), and every convicted robber has his or her hands chopped off as a punishment. Will the rate of theft and robbery in America increase, remain same or decrease? Naturally it will decrease. Moreover the existence of such a stringent law would discourage many a potential robber. I agree that the amount of theft that takes place in the world today is so tremendous that if you chop off the hands of all the thieves, there will be tens of thousands of people whose hands will be chopped off. The point here is that the moment you implement this law the rate of theft will decline immediately. The potential robber would give it a serious thought before jeopardizing his limbs. The mere thought of the punishment itself will discourage majority of the robbers. There will barely be a few who would rob. Hence only a few person's hands would be chopped off but millions would live peacefully without fear of being robbed.
Islamic Shariah is therefore practical, and achieves results.
3. Example: Islam prohibits the molestation and rape of women.
It enjoins hijab and prescribes capital punishment for a convicted rapist.
a. Islam prescribes method of eliminating molestation and rape
All the major religions declare the molestation and rape of women as grave
sins. Islam teaches the same. What then is the difference between Islam and
the other religions? The difference lies in the fact that Islam does not merely
preach respect for women, or abhor molestation and rape as serious crimes,
but also gives clear guidance as to how society can eliminate such crimes.
b. Hijab for men
Islam has a system of hijab. The Glorious Qur'an first mentions hijab for the men and then for the women. Hijab for the men is mentioned in the following verse: "Say to the believing men that they should lower their gaze and guard
their modesty: that will make for greater purity for them: and Allah is
well acquainted with all that they do." [Al-Qur'an 24:30]
The moment a man looks at a woman and if any brazen or unashamed
thought comes to his mind, he should lower his gaze.
c. Hijab for women
Hijab for women is mentioned in the following verse:
"And say to the believing women that they should lower their gaze and
guard their modesty; that they should not display their beauty and
ornaments except what (must ordinarily) appear thereof; that they should
draw their veils over their bosoms and not display their beauty except to
their husbands, their fathers, their husbands' fathers, their sons...."
[Al-Qur'an 24:31]
The extent of hijab for a woman is that her complete body should be
covered. The only part that can be seen, are the face and the hands up to
the wrists. If they wish to cover, they can even cover these parts of the body. However some Islamic scholars insist that even the face should be covered.
d. Hijab prevents molestation
The reason why Allah has prescribed Hijab for the women is given in the Qur'an in the folowing verse of Surah Al-Ahzab: "O Prophet! Tell thy wives and daughters, and the believing women,that they should cast their outer garments over their persons (when abroad): that is most convenient, that they should be known (as such) and not molested. And Allah is Oft-Forgiving, most Merciful."
[Al-Qur'an 33:59]
The Qur'an says that Hijab has been prescribed for the women so that they are recognized as modest women this would prevent them from being molested.
e. Example of twin sisters
Suppose two sisters who are twins and who are equally beautiful, walk down a street. One of them is wearing the Islamic Hijab i.e. the complete body is covered except for the face and the hands up to the wrists, and the other twin is wearing a mini skirt or shorts. Around the corner there is a hooligan who is waiting for an opportunity to tease a girl. Who will he tease? The girl wearing the Islamic Hijab or the girl wearing the mini skirt or shorts? Dresses that expose more than they conceal, are an indirect temptation to the opposite sex for teasing, molestation and rape. The Qur'an rightly says that the hijab prevents women from being molested.
f. Capital punishment for rapist
The Islamic shariah prescribes capital punishment for a convicted rapist. The non-Muslim may be horrified at such a stringent punishment in this age. Many accuse Islam of being ruthless and barbaric. I have asked a common question to hundreds of non-Muslim men. Suppose God-forbid, some one rapes your wife, your mother or your sister and you are made the judge. The rapist is brought in front of you. What punishment would you give him? All of them said, "we would put him to death." Some went to the extent of saying, "we would torture him to death", If your wife or your mother is raped you want the rapist to be put to death. But if someone else's wife or mother is raped, capital punishment is a barbaric law. Why the double standards? g. U.S.A. has one of the highest rate of Rape The United States of America is supposed to be one of the most advanced countries of the world. An F.B.I report in the year 1990 says that 1,02,555 cases of rape were reported. It further says that only 16% of the cases of rapes are reported. Thus, in order to know the actual number of rapes that took place in 1990, the reported figure should be multiplied by 6.25. We get a total of 6,40,968 rape cases that took place in the year 1990. If the total is divided by 365 the number of days in a year, we get an average of 1,756 rape incidents everyday. Later another report said that an average of 1900 cases of rape are committed in U.S.A every day. According to National Crime Victimization Survey Bureau of Justice Statistics (U. S. Dept. of Justice) in 1996 alone 3,07,000 cases of rape were reported. Only 31% of the actual cases of rape were reported. Thus, 3,07,000 X 3.226 = 9,90,322 rapes took place in 1996. That is, an average of 2,713 cases of rape took place everyday in America in 1996. Every 32 seconds one rape is taking place in America. Maybe American rapists got bolder. The FBI report of 1990 continues and says that out of the rape cases that were reported only 10% of the rapist were arrested, that is only 1.6% of the actual rapes committed. Out of those arrested, 50% were let free before the trial. This would mean that only 0.8%
of the rapists faced a trial. In other words if a person commits 125 rapes the
chances that he will get a punishment for rape is only once. Many would consider this a good gamble. And the report says that of those people who faced trial 50% received sentences of less than a year's imprisonment though the American law says rape carries a seven year sentence of imprisonment. For a rapist, the judge is lenient to first time offenders. Imagine a person commits 125 rapes and the chances of being convicted is only once, and 50% of the time the judge will grant leniency and give a sentence of less than a year!
h. Results achieved when Islamic Shariah Implemented
Suppose the Islamic shariah is implemented in America. Whenever a man looks at a woman and if any brazen or unashamed thought comes to his mind, he lowers his gaze. Every woman wears the Islamic Hijab, that is the complete body is covered except the face and the hands upto the wrists. After this if any man commits rape, he gets capital punishment. The question is, will the rate of rape in America increase, will it remain the same or will it decrease? Naturally it will decrease. Islamic Shariah gets results.
4. Islam has Practical Solutions for the Problems of Mankind
Islam is the best way of life because its teachings are not doctrinaire rhetoric but practical solutions for the problems of mankind. Islam achieves results both at the individual and collective levels. Islam is the best way of life because it is a practical, universal religion not confined to any ethnic group or nationality.
1 answer