How to Calculate Zakat on Your Savings, CPF and Investments

By Syukri Ismail, Islamic Financial Planner (MDRT 2026) · Updated July 2026 · 6 min read

Zakat is one of the five pillars of Islam, and for most working Muslims in Singapore, zakat on savings (zakat mal) is the category that applies most often. But the actual calculation trips people up — not because the maths is hard, but because two conditions (nisab and haul) have to be tracked correctly over time.

The two conditions that must be met

1. Nisab — the minimum threshold

Nisab is the minimum amount of wealth you must hold before zakat becomes obligatory. In Singapore, MUIS bases this on the market value of 86 grams of gold, and publishes an updated SGD figure every month on zakat.sg because gold prices move. As of July 2026, the published nisab figure is S$15,433 — but always check the current month's figure before calculating, since it changes.

2. Haul — the holding period

Haul is the requirement that your wealth stays at or above nisab for a full 355 days (one Hijri year). If your savings dip below nisab at any point during that period, the haul is considered "broken" — and a new haul only begins once your savings rise back above nisab.

Worked example

Here's how MUIS's own methodology works in practice. Say your haul begins in February 2025, because your savings first crossed the nisab threshold that month. Your balance fluctuates over the year:

Because the balance stayed above nisab for the full 355 days, zakat is calculated on the lowest balance recorded during that period — $12,000 — not the balance on the payment date. Zakat due: $12,000 × 2.5% = $300.

What about CPF and investments?

This is where I get the most questions from clients, since CPF and investment accounts don't behave like a simple savings account.

• CPF: This depends on whether you have control over the money. If you're still actively contributing and don't yet have the ability to withdraw your CPF savings, zakat is generally not payable on that portion, since you don't have full ownership and access to it. Once you reach the age or condition where withdrawal is possible, the accessible portion becomes zakatable like any other savings.
• Investments and unit trusts: Generally zakatable at their market value, assessed the same way as savings — lowest value during the haul, once nisab is met.
• Insurance with a savings/endowment component: Zakat may apply where the intention is wealth growth. In practice, this is generally assessed based on the policy's surrender value — if the surrender value at your assessment date is above nisab, zakat applies on that amount. Pure protection plans without a savings element typically don't attract zakat, since there's no accumulated cash value to assess.
• Salary/income directly: There is currently no MUIS fatwa making zakat on salary itself obligatory in Singapore — the obligation typically arises once income is retained as savings that meet nisab and haul.

All figures and mechanics per MUIS / zakat.sg guidance, current as of July 2026. Nisab changes monthly with gold prices — always verify the current figure before calculating.

A simple system to stay on top of it

1. Note the date your savings first crossed nisab — that's your haul start date.
2. Track your lowest monthly balance across all zakatable accounts (savings, CPF where applicable, investments).
3. Set a calendar reminder for 355 days later.
4. On that date, confirm the balance never dipped below nisab; if it did, restart the haul from when it recovered.
5. Calculate 2.5% of the lowest balance and pay via zakat.sg, GIRO, or your mosque.

Common questions

What is nisab and how is it calculated in Singapore?

Nisab is the minimum wealth threshold for zakat to be obligatory, based on the value of 86 grams of gold. MUIS publishes an updated SGD figure monthly on zakat.sg.

How is zakat on savings calculated?

2.5% of your lowest balance during the 355-day haul period, provided that balance stayed above nisab throughout — not 2.5% of your current balance.

Do I need to pay zakat on CPF?

It depends on whether you have control over the money. If you're still contributing and don't yet have the ability to withdraw the funds, zakat is not payable on that portion. Once you can access and withdraw your CPF savings, that accessible portion becomes zakatable.

Is zakat due on salary or income directly?

No standing MUIS fatwa currently makes this obligatory — zakat typically applies once income becomes retained savings meeting nisab and haul.