According to Qur’anic descriptions, zakah is an obligatory payment made annually under Islamic law that each Muslim is expected to pay as a religious duty and it is used for charitable and religious purposes. The term sadaqah is an Islamic term that means “voluntary charity” and this concept encompasses any act of giving out of compassion, religious duty or generosity.

Zakah is payable at 2.5% of the wealth one possesses above the nisab. Nisab, which is equal to 85 grams of gold, is the minimum amount of wealth one must have before they are liable to pay zakah.