Zakah On Salaries


Question

I wanted to understand why in a simple job without capital the zakah rate is higher? Interestingly, a relatively low rate is implemented in the case of income from business which involves capital?

Answer

This is the application of the directives of the Prophet (sws) about agricultural products, where the advice is to pay 5% when the land is owned (capital) and is watered by us (labour), but 10% if it is watered naturally by rain. For instance look at the following Hadith:

The Prophet said, “On a land irrigated by rain water or by natural water channels or if the land is wet due to a near by water channel Ushr (i.e. one-tenth) is compulsory (as Zakah); and on the land irrigated by the well, half of an Ushr (i.e. one-twentieth) is compulsory (as Zakah on the yield of the land).” (Bukhari, Volume 2, Book 24, Number 560)
It seems the reason for the differentiation is that where both capital and labour are involved, the risk is higher, therefore less zakah is demanded.

Answered by: Farhad Shafti

Date: 2015-03-07