The effects of Zakat on eliminating poverty and unemployment

Poverty and unemployment are major threats to the economy, society and humanity. Islamic Zakat System is based on the guidance of the holly Quran and Hadiths which can reduce poverty and unemployment. Zakat ul Maal (Alms) can be defined as compulsory contribution payable at once in a year from the wealth which has reached the prescribed level (Nisaab). This is a command of Almighty Allah which must be fulfilled by every Muslim, male and female. Every Muslim who owns wealth, more than a certain amount to meet his or her needs, must pay a fixed rate of Zakat to eight different categories mentioned in the Qur’an. The Prophet (peace and blessings of Allah be upon him) sought refuge to Allah from poverty. Zakat plays an important role in eliminating poverty and unemployment. Zakat is one of the first institutes of social solidarity in history, which includes Muslims and non-Muslims.