Do I pay Zakat on the annual salary that I earn?
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
Zakat is not like income tax where the annual salary is taxed after a tax-free threshold. Instead, Zakat is simply paid on the residual/net wealth on one’s Zakat anniversary. Thus, the amount earned in the course of the year is irrelevant as per the calculations in the Hanafi school. Zakat will be paid on the net wealth one has on their Zakat anniversary.
And Allah Ta’ālā Alone Knows Best
Mufti Faraz Adam,
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