Lably
Skip to content

Nisab

Islamic wealth threshold after which Muslims give to charity

  • 3 min read
  • 3 chapters

Related on Lably

Through Secularism

Niṣāb of gold and silver

The value of the niṣāb was originally set at 20 dinār or 200 dirham. The dinār is a gold coin weighing one mithqal (4.25 grams) and the dirham is a silver coin weighing 0.7 mithqal (2.975 grams). The relation of 20 dinār and 200 dirham reflects the contemporary exchange value between the dinār and the dirham of 1 to 10 in the early days of Islam. Over time, the exchange rate between gold and silver has shifted, so 20 dinār has become more expensive in market value than 200 dirham. Despite this, the definition of niṣāb has not been altered throughout Islamic history. Both values are accepted in Shariah, and so one can choose to pay zakat if his wealth reached the value of either of them.

The niṣāb is applicable to the cumulative stock of dinār, dirham and any other zakatable valuables, such as merchandise that has been in store for at least one year. As long as the total value of the zakatable valuables exceeds the value of the niṣāb, zakat must be paid.

Some modern scholars have accepted that since dinārs and dirhams are no longer readily available the best solution is to calculate the niṣāb using a mithqal of pure gold as a reference. Although this is not an exact calculation it is considered a valid approximation given current circumstances.

Modern interpretation

The nisab of gold and silver has been interpreted to extend to modern currencies, and the modern value of the nisab is determined each year using the gold and silver exchange rates.

Another modern problem regarding nisab is whether to use the value of gold (dinar) or silver (dirham). To overcome this problem, most contemporary jurists follow one of two approaches:

  1. Use gold as an evaluation reference. This is rationalized by the fact that gold is the origin of modern currency, and is considered more precious than silver.
  2. Use whichever satisfies best the interests of the poor.

Sign in to keep reading

2 more chapters are free with a Lably account.

More in Politics and economics