In the current economic downturn, most people invest their wealth by buying gold. Be it precious metals or jewellery. The reason is because gold protects the value of our wealth and is not subject to inflation. However, it is important to remember that we are obliged to pay zakaah on it once it has reached hisab and haul. This includes gold jewellery. Islam also imposes zakat on jewellery. What are the laws and regulations?
What is Jewellery?
Jewellery is an object that is used to beautify and enhance oneself. It adds value to the beauty of a person. Jewellery usually comes in the form of necklaces, rings, glasses, pendants, crowns, and so on. However, the most common elements found in jewellery are gold and silver. Thus, it has become a question for the ummah as to what is the ruling of zakat on jewellery.
Apart from gold and silver, jewellery also has other metallic elements. These include copper, platinum, carmatium, stainless steel, titanium, palladium, bronze, brass, alpaca and tin. Some are in the form of pure gold or silver, while others are mixed with other metal elements. There are also diamond stones such as emeralds, sapphires, and so on that have a high selling value.
Apart from precious metals, there are also jewellery pieces made of plastic. Such as plastic bracelets, rings, plastics, and so on. We will not discuss this plastic group, because it is more appropriate if it is called an accessory. Although they are both bracelets, if they do not contain gold and silver, they are not considered jewellery.
Read also: Year-end Zakat must be completed before 2024 ends
Evidence on Zakat on Jewellery
The ruling on zakat on jewellery is derived from two types of evidence: general evidence and applied evidence. The use of these arguments can serve as a basis for people to examine how the law of jewellery zakat is applied.
The evidence for the ruling on jewellery zakat is from the Qur’an: “And those who store up gold and silver and do not spend it in the cause of Allah, then tell them (that they will receive) a painful punishment. On the Day when the gold and silver will be heated in Hellfire, and their foreheads, stomachs and backs will be burnt with it (and it will be said to them): This is your wealth that you have kept for yourselves, so now taste the consequences of what you have kept.” (QS. At-Taubah: 34-35)
The evidence for the ruling on zakat on jewellery comes from the hadith: “Abu Hurairah reported that the Messenger of Allah (saw) said: ‘Whoever owns gold or silver and does not pay zakaah on it, on the Day of Resurrection, a plate will be gilded for him from the fire of Hell, then heated in the fire of Hell Jahannam, then his forehead, ribs and back will be ironed with the plate. When it cools down, it will be gilded again and ironed for him on a day equal to fifty thousand years. Then he will see the place to which he will return, whether to Paradise or to Hell.” (HR Muslim No. 987)
Both of the above arguments are general in nature, as they do not specifically mention jewellery, which is not all made purely of gold and silver. For this reason, we need to look at the applied evidence regarding the ruling on zakaah on jewellery.
The first applied evidence
Amr ibn Shu’aib reported from his father and grandfather thata woman came to the Messenger of Allah with her daughter, who had two large gold bracelets on her hands. So the Messenger of Allah asked her: ‘Have you paid this zakat?’.
She replied: ‘No’.
The Messenger of Allah (peace and blessings of Allah be upon him) then said: ‘Are you happy that Allah will clothe you on the Day of Judgement with two bracelets from Hellfire?’ The woman took them off and gave them to the Messenger of Allah (peace and blessings of Allah be upon him).
The woman took them off and gave them to the Messenger of Allah, saying: ‘They are for Allah and His Messenger’.” (Reported by Abu Daud No. 1563)
Second Applied Evidence
‘Abdullah ibn Shadad ibn Hadi reported: We went in to see “Aisha, the wife of the Messenger of Allah (blessings and peace of Allah be upon him), and she said: ”The Messenger of Allah (blessings and peace of Allah be upon him) came in to see me, and he saw on my hand some silver rings, and he asked: ‘What are these, O “Ā’ishah?”
I replied: ‘I am wearing them to adorn myself for you, O Messenger of Allah’.
Then he asked: ‘Have you paid zakaah on them?’
‘No’, I replied.
The Messenger of Allah (blessings and peace of Allah be upon him) then said: ‘That is enough to put you in Hellfire’.” (Reported by Abu Daud No. 1565)
Third Applied Evidence
Asma’ bint Yazid reported : I went with my aunt to see the Messenger of Allah (peace and blessings of Allaah be upon him) and she was wearing some gold bracelets. The Messenger of Allah (blessings and peace of Allah be upon him) asked us: “Have you paid this zakaah?
We replied: ‘No’.
The Messenger of Allah (peace and blessings of Allaah be upon him) said: ‘Do you not fear that Allah will put on you a bracelet from Hellfire. Therefore, pay the zakaah‘.’ (HR Ahmad, 6:461)
These three applied proofs specifically indicate that any gold or silver that is made into jewellery is subject to zakat. As long as it has elements of gold and silver, every piece of jewellery must be paid zakat.
The threshold for zakat on jewellery is the same as that of gold and silver. For gold jewellery, if the price is equivalent to 85 grams of gold, 2.5 percent of the price of the jewellery is required to pay zakat. Similarly, for silver jewellery, if the price of the jewellery reaches 595 grams, zakat must be paid.
Read also: Definition of Zakat, Terms, and Types According to Islam
Ruling on Zakat on Jewellery
Jewellery is not only used to beautify oneself. Some Muslims also own jewellery for trade, investment or other purposes. Hence, scholars have differed on the ruling of zakaah on jewellery and the contexts in which it applies.
First Context: Zakat on Stored and Sold Jewellery
Jewellery that is stored or traded is obligatory to pay zakaah on. Imam Nawawi said in al-Majmu ‘ (6/36) : “Our scholars said: If a person has jewellery (gold and silver) that he does not intend to use, whether it is haraam, makrooh or permissible, but to keep and own, then according to the correct madhhab, it is obligatory to pay zakaah on it, and this is the view of the majority of scholars.”
In addition to Imam Nawawi, Ibn Qudamah also wrote in al Mughni (2/608): ‘If a woman wears jewellery, then after that intends to trade it, it becomes obligatory to pay zakaah after one year, starting from the time of her intention.’
Second Context: Jewellery Used for Everyday Use
The scholars disagree about gold or silver jewellery that is intentionally worn during daily activities. These include rings, necklaces, bracelets and earrings. Some are of the view that zakaah is not due on them, while others are of the view that it is obligatory.
The majority of scholars, including Imam Malik, Imam Shafi’i and Ahmad, are of the view that jewellery that is worn for daily activities is not subject to zakaah. They argue that jewellery is something that almost every woman needs. For women, jewellery has the same status as clothes, cosmetics and household appliances. Hence, no zakaah is due on it.
Abu Bakr al-Hasni said in Kifayat al-Akhyar (266): ‘Because jewellery is used to adorn oneself in permissible ways, it is like camels and cattle that are used for work’.
The scholars of Abu Haneefah said that jewellery made of gold and silver is subject to zakaah, even if it is used to beautify oneself in everyday life. There is no distinction between jewellery that is kept and jewellery that is worn daily.
The Abu Haneefah scholars use the hadith narrated by Abu Daud, which has been included in the first applied argument. The evidence says that a woman who wears gold bracelet jewellery must pay zakat. If she does not pay, then Hell is prepared for those who do not pay zakaah.
The third opinion comes from among the scholars of the school of Imam Maliki. Some of them are of the opinion that zakaah is due on jewellery, but it is sufficient to pay it once. This is based on a hadith of the Prophet (peace and blessings of Allah be upon him), which makes it obligatory to pay zakaah on jewellery, and another hadith that seems contradictory at first glance.
The hadith recorded by the Imam in al-Muwatha‘, narrated by Ibn Umar and Siti “Aisha , reads: ”Siti “Aisha (may Allah be pleased with her) gave jewellery to her brother’s daughters who were orphans under her care, and she did not pay zakaah on them”. (Kifayatul Akhyar, Juz 1:186).
Third Context: Gold Jewellery with the Status of Haram
Initially, gold and silver jewellery was forbidden to be worn during the da’wah period in Makkah. It was feared that they would give the impression of being extravagant and not empathising with their Muslim brothers and sisters who were less well-off. However, later women were allowed to wear jewellery to adorn themselves, as long as it was not excessive.
But for men, wearing jewellery becomes forbidden. This is based on the hadith said by Ali ibn Abi Talib, that the Prophet Muhammad took silk and put it in his right hand, then took gold and put it in his left hand, then he said, ‘Verily these two are forbidden for the men of my Ummah’. (Imam Ahmad)
For men, wearing gold jewellery is prohibited, but owning it is permissible as long as one pays zakat on it. Jewellery includes gold spoons, gold cups, bracelets, necklaces, rings, and so on.
How to Calculate Zakat on Jewellery
Zakat on gold or silver jewellery has the same nisab as pure gold and silver. For gold jewellery, it is equivalent to the price of 85 grams of pure gold. For silver jewellery, it is equivalent to 595 grams of silver. Even if the total weight of the gold plate is 100 grams, but the content is 18 carats, as long as the price reaches the nisab, it is still subject to zakat at 2.5 per cent.
Example:
Ahmad owns a glass made of 85 grams of gold worth Rp130 million, with a gold content of 22 carats. It is known that the current gold price is Rp1,510,000/gram. Then the nisab price of gold is equivalent to Rp128,350,000.
Even though the weight is both 85 grams, the price taken is the price spent to buy the gold glass. So the calculation is Rp130,000,000 x 2.5% = Rp3,250,000. This means that the jewellery zakat that Ahmad needs to pay in one year is Rp3,250,000.
Read also: The Law of Paying Zakat Online, What is the Sharia-compliant Method?
Ruling on Zakat on Jewellery, Other than Gold and Silver
There are many types of jewellery, apart from gold and silver there are brass, stainless, or even diamonds and stones that are very expensive. There is no evidence to suggest that zakat is obligatory on precious metals other than gold and silver, but we can refer to the calculation of zakat maal.
If there is profit from the precious metals that one owns, such as buying and selling precious metals other than gold and silver, and stones such as diamonds. If you earn profit from it, it is part of your wealth. As long as the profit earned reaches the nisab of zakaah on precious metals, which is 85 grams of gold, zakat must be paid on it.
“O you who believe, spend (in the way of Allah) some of what you have earned and some of what We bring forth from the earth for you. And choose not that which is bad, and give of it, when you would not take it except by straining your eyes against it. And know that Allah is All-Rich, All-Praised.” (QS. Al-Baqarah: 267)
Easy Zakat at Dompet Dhuafa
As an amil zakat institution, Dompet Dhuafa provides very easy and flexible services. If you have difficulty calculating the nominal zakat that needs to be paid, you can use the zakat calculator service available on the Dompet Dhuafa website and application.
There are three conveniences that you can get when paying zakat at Dompet Dhuafa. First, the Zakat Pick-up Service. You can contact Dompet Dhuafa to pick up your zakat, so you don’t have to bother going to the Dompet Dhuafa zakat service office or counter. Second, zakat service through account transfer. You can transfer your zakat to one of the accounts from the following list of accounts. If so, confirm your zakat as a form of zakat contract. Third, zakat service through online payment. You can pay your zakat to Dompet Dhuafa through online payments, such as DANA, GoPay, ShopeePay, OVO, CIMB Clicks, IB Muamalat, mastercard and visa cards.
Apart from the above methods, you can also pay zakat through the digital.dompetdhuafa.org/zakat page, or through the Dompet Dhuafa application which can be downloaded here (Android|iOS). In the application, Sahabat can enjoy a variety of features, ranging from the Qur’an, viewing the Dompet Dhuafa Public Report, to Tanya Ustaz (Ask the Ustaz).
The most important thing about giving zakat at Dompet Dhuafa is that your zakat will not only be channelled in a consumptive form, but also productive. Zakat funds will be managed into community empowerment programmes in five areas at once (education, health, economy, social, da’wah and culture). Thus, the zakat that you pay can raise the status of mustahik to become muzaki. Not only can it be enjoyed for a week or two, but throughout the life of the mustahik.
