Weighing Justice in Karats: Is the 14-Karat Zakat Threshold More Relevant?

The unusual rise in gold prices over the past two years, which continues unabated, has the potential to drastically reduce the number of zakat payers. This is because the zakat threshold (nisab) calculation is based on the value of 85 grams of 24-karat gold. Those whose income or asset value reaches or exceeds the equivalent of 85 grams of gold in a year are obliged to pay zakat of 2.5% of that value.

Assuming a gold price of Rp3 million per gram, the zakat obligation threshold is Rp255 million, or for professional income zakat, Rp21.25 million per month. An income of Rp21 million per month practically makes fewer people subject to zakat, considering that the average monthly income of Indonesians is far below that—i.e., the highest minimum wage is Rp5.9 million.

In light of this situation, the government through Baznas has issued Chairman of Baznas Decision No. 15 of 2026, where the 2026 income zakat nisab is set equivalent to 85 grams of 14-karat gold. This policy is a response to the potential decrease in muzaki (zakat payers), as well as an effort to preserve the spirit of zakat amid global economic uncertainty.

In addition to the risk of a ‘decline in the number of muzaki’, Baznas studies also show that using the 24-karat gold standard would wipe out the zakat potential from the ‘emerging middle class’ group, which comprises 73.71% of the national population. Calculatively, Indonesia could lose 45.40% of its effective muzaki base. Zakat, which should serve as a social safety net, would lose its reach because the threshold is no longer grounded in reality, at a time when zakat is greatly needed by mustahik (zakat recipients).

It is necessary to revisit the essence of zakat, which is not only a spiritual matter but also has a social aspect. Zakat is a social safety net for mustahik, as stated by Ibn Uthaymeen that the key point of zakat lies with the poor who benefit from it—what is more beneficial for the poor. Therefore, according to him, using a standard that reaches the nisab first is seen as more beneficial for the rights of mustahik.

INTERESTS OF MUSTAHIK AND SOCIAL JUSTICE

Setting the zakat nisab at Rp7.64 million per month (equivalent to 14-karat gold) is an effort to defend the rights of the poor and enhance social justice. This figure is more representative of the real living costs of Indonesian society compared to the pure gold standard influenced by global market speculation. With a more moderate nisab, the middle-income group can still contribute to the Islamic wealth distribution system, ensuring that the collected zakat funds are sufficient to finance poverty alleviation programmes.

However, the polemic of the zakat nisab amid poor economic conditions and a shrinking middle class has become a serious discussion. BPS data shows that the number of middle-class individuals dropped from 47.9 million in 2024 to 46.7 million in 2025, and the phenomenon of ‘dipping into savings’ in the middle class continues. On the other hand, the double-job phenomenon is also emerging in society, indicating that daily needs cannot be met from one job alone.

Thus, this decision to change the nisab value needs to be considered carefully from various perspectives so as not to further burden the already pressured middle class by economic conditions, while on the other hand ensuring that zakat collection continues to function as a safety net for those in need.

FIQH BASIS FOR ZAKAT NISAB

For decades, we have been accustomed to using pure gold (24 karat) as the sole benchmark, as stipulated in Minister of Religious Affairs Regulation No. 31 of 2019, which sets the nisab for income and service zakat equivalent to 85 grams of gold. However, the economic reality of 2025-2026 shows a striking anomaly. Global gold prices have surged dramatically by 70%-72%.

The determination of the gold nisab in the context of zakat has varied fiqh bases among the schools of thought. However, there is no difference of opinion among scholars on determining the zakat nisab based on pure gold. It differs when determining the nisab using non-pure gold, where there are still differences of opinion.

In the Shafi’i school, where the principle of caution is upheld, the zakat nisab is only based on the amount of pure gold (24 karat), so if there is a mixture in the gold, separation between the pure part and the mixture must be done before determining the zakat obligation. The same opinion is found in the Hanbali school.

In contrast, the Hanafi school introduces the principle of al-hukmu lil ghalib (the ruling follows the dominant element). This means that as long as the gold content in an item reaches half or more (dominant), then legally, that item can be treated as full gold in zakat calculations. This opinion is one of the strong legitimations in contemporary fiqh as the basis for shifting the nisab to the 14-karat standard (with gold content around 58.33%-62.49%).

In addition, the Maliki school emphasises the aspect of rawaj or market acceptability. 14-karat gold has become a popular value storage instrument and is widely traded in society. By integrating these two views, the use of the 14-karat standard becomes a moderate solution that provides legal certainty as well as economic flexibility.

TRANSPARENCY AND ACCOUNTABILITY: THE KEY TO HARMONISATION

Looking back at zakat management, on one hand, this makes the role of zakat as a social safety net able to continue providing benefits to the poor amid increasingly difficult economic conditions. On the muzaki side, the zakat paid out remains a means to purify wealth to achieve blessings. However, it can be unde