Nisaab: The line that separates rich & poor

What is Nisaab?

Nisab is the baseline which differentiates between the rich and the poor, the people who give Zakat from the people who might receive Zakat.
If your zakatable wealth crosses this level, then you become what is known as Sahib-e-Nisab, the people who have money sufficient enough to obligate zakat.

How is Nisaab calculated?

Historically Nisaab has been calculated as being 200 dinars (silver coins) or 20 dirhams (gold coins).
Let’s see what that means.

Nisaab according to silver

Dinars were silver coins. Nisaab has been fixed as 200 dinars. The amount of silver present in 200 dinars is estimated to be 612.36 grams of silver. To calculate Nisaab according to silver, we check the current price of 612.36 grams of pure silver.

Nisaab according to gold

Similar to Dinars, 20 dirhams has been fixed as the gold Nisaab. 20 dirhams would contain 87.48 grams of gold. Now to calculate the value of Nisab according to gold, we would have to take the current price of 87.48 grams of pure gold.

Gold or silver?

You will find that the Nisaab value according to gold and silver is not the same. So, which one do you choose?
In keeping with the spirit of Zakat, which is helping the poor and needy, we select the value which is the lowest, Usually silver’s Nisaab.

Exception: If you only have gold as your zakatable wealth and nothing else (highly unlikely), then Nisaab of gold is taken.

Significance of Nisaab

Nisaab draws a thin yet concrete line between people who give zakat versus people who don’t. It somehow manages to ensure there is no financial hardship on both.

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