Can Nisâb Be Equated with the Poverty Line?
Nisâb is not to be confused with the minimum standard of living, poverty line, or exemption limit. It is a well-defined term in the Sharî’ah: Nisâb is the specific minimum amount in each zakatable category of wealth used for the purpose of calculating Zakât. Some mistakenly define ‘nisâb’ as “an amount which is sufficient to sustain the minimum average family for one year.” This is unequivocally wrong. The Prophet said in one report (strengthened by others): “From gold, take nothing until it reaches 20 dinars. At 20 dinars, there is a half dinar due” (Ibn Hazm, Al-Muhalla, 6:69 Fiqh az-Zakât, 161). Based on hadîth similar to this one—but especially on the practice of the Companions and the consensus of Muslims of the early generations—the nisâb of gold or money counted for Zakât is 20 dinars equivalent to 85 grams of pure gold (Fiqh az-Zakât, 168). Nisâb is calculated on a possession that remains with one on a zakatable category of wealth after one fulfills all basic living expenses fo
