It was not
until recently when the society felt an urgent need to provide its members who
are poor and needy with the necessary protection. Such a realization is natural, as any
legitimate state owes its citizens the fundamental responsibility of protecting
them, be it in the field of economy, politics, social, culture and others.
Hence, the welfare states of today such as Britain, the United
States, France
and Russia,
to name a few, have striven hard to overcome the economic problems faced by
various families in their respective countries.
These states have devised the modern system of social security in their
variant efforts to provide for those who face financial constraints, unable to
financially support themselves wholly or partly. Among the objectives of this modern social
security systems invented by these States are:
(i)
To reduce the poverty rates; and
(ii) To improve the
quality of life of citizens
The
institution of Zakat, however, is a Divine obligatory sort of taxation
acting as the most effective measure in upgrading the financial condition of
the destitute. This institution strives to achieve
objectives, which are broader in nature.
This is because, not only does it aim at providing the society with
financial security, but it also, as a whole, inculcates moral, social and
spiritual values in each individual. In
view of the institution of Zakat aiming at achieving broader objectives,
this research therefore, seeks to prove that the institution of Zakat
may not only form the basis of today’s modern social security system, but also
brings some other individual benefits to the society.
The whole
research however, is divided into four sections plus a final remark. The first section presents the basic idea of
the present scenario of the modern social security system, while the second
highlights the fundamental understanding of the institution of Zakat. The third, on the other hand, focuses on the
evaluation of whether the institution of Zakat can provide a meaningful
social security, while the fourth section provides a constructive justification
of the fact that, the institution of Zakat is capable of providing a meaningful
basis for the modern social security system; and lastly a final remark, which
comes up with a summary of the research and also some possible suggestions on
the application of Zakat to ensure a better social security for the
contemporary society.
AN OVERVIEW OF MODERN SOCIAL SECURITY SYSTEM
The term
‘social security’ signifies the variety of material support provided for the
poor and the needy in the society. Most
of the countries of today (both Muslim and non-Muslim) are striving very hard towards
providing a social security for their respective citizens in accordance with
their needs and abilities. The modern
social security system covers retirement, pension, maternity allowances, child
benefits, sickness benefits, disability benefits, unemployment benefits, family
income supplements, housing benefits,
education aids and so on. Here, I wish
to highlight a few examples of modern social security systems, which are
applied in some selected countries so as to enable us to grasp the main idea of
the present scenario of the modern systems in providing social security for the
poor and the needy in various societies around the globe.
In Britain, there
are four basic categories of benefits or schemes provided for the social
security of its citizen. They are
contributory, non-contributory,
means-tested benefits and exemption from National Health Service charges.
Contributory-Based Scheme
In Britain, there
is a National Insurance scheme sustained upon the contributions from different
sources, namely:
(i) Weekly
contributions from every employee who attains the minimum age of 16 years
for both male and female, or the maximum age of 65 years and 60 years for male
and female respectively.
(ii) Complementary contributions from the
government.
The benefits
available in this National Insurance scheme are the benefits for retirement,
sickness and unemployment
and they are further divided into two categories:
i) Long-term
basis benefits
This type of benefit include, among others:
- Retirement pensions - every employee
who attains the age of 65 years and 60 years for male and female
respectively is to be paid for 90% of his or her working life.
Widow’s allowance - a widow is entitled
to receive a lump sum benefit upon the death of her husband and is also
entitled to a weekly allowance, if she has a dependent or is over 45 years
old at the time of her husband’s death.
- Invalidity pension - a benefit is
payable after 28 weeks on continuous sickness of the insured, should he or
she fails to work.
ii) Short-term
basis benefits
The
short-term basis benefits are:
- Unemployment
benefits - unemployed person is entitled for up to 52 weeks benefits. Should he or she still fail to obtain a
job, he/she may claim for an income support for an indefinite period.
-
Maternity
allowance - a weekly allowance is paid to a female for maternity purposes
for 18 weeks.
-
Statutory
sickness pay - every employee is entitled to receive a sickness allowance
for up to 28 weeks from the respective employers.
-
Sickness benefit - a weekly allowance is payable to the
off-work employer for sickness up to 28 weeks.
Non-Contributory Based Benefits
There are
many citizens in Britain
who are poor and needy and are entitled to obtain material benefits from the
government. This second type of scheme
is non-contributory in nature, as the material and financial sources are not
derived from voluntary contributions from the employers and the employee, but
from the general tax revenue of the state.
The benefits
available for the society, which are non-contributory in nature, are as
follows:
- Child
benefit - every child in Britain
is entitled to a tax-free flat rate for male and female alike. If any child is disabled and in
education, the allowance is extended up to 19 years of age.
- Single
parent benefit - a divorcee or an unmarried woman is entitled to a
tax-free allowance for her first child (in addition to the child’s own
benefit).
- Disabled
benefit - any person who is unable to work for 28 weeks and does not have
any contribution in the national insurance scheme is entitled to a
tax-free benefit.
- Attendance
allowance - any mentally and physically disabled person who needs frequent
aid of attendance will be paid an allowance according to the cost for
attendance.
- Mobility allowance - any person between the ages of 5 and
80 who is due to physical disability
unable to work is entitled for a tax-free allowance.
Means-Tested Benefits
The third
type of scheme available for the citizens of Britain is the means-tested
benefits, which is also financed by the general tax revenues. Various benefits available under this
category are as follows:
- Income
supplement - An income supplement allowance is available for a person who
attains the minimum age of 18 and is unemployed
or whose income is lesser than the amount of income fixed by the
Parliament.
- Family
credit - It is a tax-free allowance received by the low-income working
families, who have at least one child at the age of below 18.
- Housing
allowance - In Britain, almost 80% of the whole population are living in
houses and Bungalows, while the remaining 20% are living in flats, etc.
Among them, those who are low-income families, are entitled to housing
allowance. The amount of allowance granted depends
on the savings, income and number of children in the family.
- Social fund - It is established by the government of Britain
with a fixed sum determined by the Parliament. The function of this fund is to help the
low-income families to bear funeral costs, basic costs for necessary
equipment for a newborn baby, and costs for adaptation to the houses of
elderly or disabled people.
Exemption from National Health Service
Every pensioner
is exempted from the charges for drugs, and every child below 16 or recipients
of family credit or income supplement are exempted from the charges for drugs,
entitled for free dental treatment, a voucher for NHS spectacles and also enjoy
free school meals. Other non-income citizens are also eligible
for some of the above benefits.
In the United States of America,
the Social Security Act 1935 is the most comprehensive legislation,
which ensures the smooth running of the social security system up to date. The central aim of this Act is to provide
basic and material security for the poor and needy in the U.S.A.
This Act
offers various types of benefits to the society and these benefits could
generally be divided into three categories:
- Social
Insurance Program - It includes the provision of security for the old,
survivors, disabled and mediocre.
- Public
Assistance Program - Which includes income supplement for the needy who
are old, blind, permanently disabled and also for dependent children.
- Child health and welfare service - This program includes
material cases, cases of crippled, children and general child welfare
services.
The
responsibility to execute these programs under the Social Security Act of 1935
is rested in the Department of Health and Social Services,
with a complete financial cooperation by the National Government, States,
the employers and the employees.
In Malaysia, the
Government places a lot of emphasis on sustaining social security under the
National Social Welfare Policy, which was adapted by the Government in 1990. The role played by the Federal Government as
well as its States under this national policy, are basically in the form of
material assistance for the handicapped, the disabled, the destitute, the least
fortunate in the society,
the old and so on. Sometimes, in
assisting them, this policy also covers funeral expenses, certain medical
services, and invalidity
as well. There is also a social
insurance scheme in Malaysia,
whereby both the employers and the employees contribute
according to the income, which would enable the employees to gain financial
security after their retirement.
Besides,
countries like Britain, the USA and Malaysia,
there are many other countries rendering various material and financial
assistance to help the unfortunate ones in their own respective countries, such
as Taiwan, Hong Kong, Singapore
and so on. A quick glance at the conventional modern
social security system practiced in this modern era will reveal that, emphasis
is put only on material and financial assistance and providing security for the
poor and the needy in the society.
Underlying
Objectives of Modern
Social Security System
In this
materialistic world, material and monetary gains have always been among the
aims of one’s life. However, it is sad
to say that not everyone is able to achieve such gains in this rapid moving
world. Everywhere around the globe, we
still see the forgotten faces of the poor and the needy, struggling to maintain
their lives. The question here is, who
can help the plighted destitute?
Hence, it
has always been one of the most common purposes for any legitimate society to
provide all the necessary material assistance for the unfortunate members of
the society, in order to ease their burden and to enable them enjoying their
lives. The execution of the modern
social security system, hence, ensures the necessary material protection for
the destitute towards the following principal objectives:
i) To develop
a common feeling of humanity in the public in helping and providing the
unfortunate with financial and other material assistance;
ii) To change
the attitude of the general public and the Government in helping the poor and
the needy in the society;
iii) To come up with some possible material
solutions for the destitute;
iv) To reduce the rate of poverty in the society
by helping them to be self-reliant;
v) To create a more conducive and meaningful
life for all citizens;
vi) To curb
social destruction, which often occurs because of financial crisis that usually
leads to the increase of poverty and crime rates in the society.
Socio-cultural
Impact of Modern Social
Security System
The modern
social security system basically, as we have seen, aims at sustaining the life
of the poor and unfortunate ones, so as to escape from hardships and to enable
them to live with happiness and dignity.
There are
mainly two types of schemes available under this modern social security. They are:
Contributory based-scheme, for which the public is obliged to
give a partial contribution to a fund to help the poor and the needy. This scheme includes the following benefit:
The rest of
the benefits are usually available in countries like the U.K., the U.S.A. and so on. They are:
-
- Widow’s
benefit
- Invalidity
allowance
- Unemployment
benefit, which is available in the U.K.
for a maximum period of 52 weeks
while in the U.S.A.
the Social Security Act 1935, provides unemployment benefit for a limited period.
- Sickness
benefit, which is available for a limited period for workers who are
unable to work due to illness.
Non-contributory based scheme, for which the public is not
obliged to make any partial contribution. The fund
usually comes from the general tax revenue of the State.
Among the
benefits available under this scheme are:
- Child
benefit - whereby for instance, a child in the U.K. is entitled to a weekly
allowance until the age of 16 years.
- Single-parent
benefit - whereby for example, a divorcee or an unmarried parent in the U.K. is
entitled to a tax-free allowance.
- Benefit
for the old and disabled - which is available in countries like Hong Kong, Malaysia,
the U.K. and the U.S.A. and
many more.
- Income
supplement - which is available for those whose income, is lower than the
amount fixed by the Parliament. This type of benefit is available today
in the U.K. and the U.S.A.
- Housing
benefit - which is provided for those who have a low salary.
- Exemption
from National Health Service charges, whereby in the U.K. all
pensioners, under-aged children, receiver of income supplement
and other needy people, are eligible to be exempted from the National
Health Service charges, wholly or partly depending on the circumstances.
There are
also other types of material assistance under the social security plan in many
countries for the blind,
handicapped,
old folks,
survivors of disasters,
destitute
and other unfortunate members of the society.
Sources
of Modern
Social Security Fund
There are
numerous financial sources to back up the fund for the modern social security
system so as to ensure that, the poor and the needy in the society are not
overlooked. These sources are as
follows:
i) Compulsory
contributions from employees for the fund to help the employees in both
situations; risk in the course of service and also upon retirement.
ii) Compulsory
contribution from employers for the fund under the above compulsory scheme.
iii) In the U.K., the
general tax revenue finances the non-contributory scheme, non-means tested and
means-tested schemes.
iv) In the
U.S.A., the national government finances the assistance for the old folks,
survivors or disabled and Medicare, while the States finance other programs,
where, all aim in helping the poor and the needy in the society.
v) In other
countries, like Malaysia, Singapore, Hong Kong
and so on, the fund for the contributory scheme is sustained by the partial
contribution by the employees, while the others are contributed by the
employers. Other programs under the
social security plan are usually financed by the government with the
cooperation of the general tax revenues.
Debating
Issues on Modern
Social Security System
Even though,
it is an undeniable fact that, the modern social security system is trying to
help the poor and the needy in the society to live comfortably and with
dignity, there are still some aspects of it, which could be criticized:
i) First of
all, the modern security system fails to cater for the insolvent with providing
financial assistance to settle their debts;
ii) Secondly,
even though it helps the unemployed by offering them financial assistance, such
a move is unwise as it might turn them into lazy citizens,
who would depend solely on assistance without having any kind of urge to solve
their own plight. Hence, instead of
providing them with such assistance, it may be better to provide them with a
short-term loan to allow them to open their own businesses, which will of
course be more beneficial to the unemployed, rather than giving them financial
aids.
iii) Thirdly,
there is also no financial assistance available under this modern system for
the needy wayfarers, who are unable to maintain their costs for the rest of the
journey.
ZAKAT ? ITS SOCIO-ECONOMIC
FRAMEWORK
Central Idea
Zakat
could well be defined as one of the five tenets of Islamic teachings,
which appears in the form of an obligatory tax
aimed at purifying a person’s soul and wealth in establishing social justice in
the society. This Islamic institution could be regarded as
one of the principal threats to the root of today’s capitalism.
Zakat
is not only a form of charity but also compulsory tax collected from those who
are rich and wealthy, and distributed among the right recipients as described
in the Holy Qur’an. The principal
objectives of Zakat are not only to reduce the rate of poverty in the
society, but it simultaneously acts as a means of purifying one’s soul and
wealth.
It is
however, unfortunate that, the notion of Zakat is often misunderstood
by the people who often regard it as to be only a mean of charity given out by
the rich to the poor and the needy. The
reality of the application of this institution could be summed up as follows:
i) Apart from
being charitable act, Zakat is also a compulsory tax imposed on the rich
and wealthy at the rate varying from 25% to 20%.
ii) It does not
only provide financial assistance for the needy, but also purifies one’s soul
so as to make it closer to Allah (swt) and also purifies one’s
property and wealth so as to eliminate from one any sense of selfishness.
iii) The scope
of Zakat should not be narrowly interpreted today, relying only on the
items specified and mentioned during the time of the Prophet (saw). In the early Islamic period, the idea of
levying Zakat was on an annual savings of a prescribed amount,
after deducting self and family maintenance and settlement of one’s debts.
Since, the nation of ‘Zakatable property’ was previously understood as an
annual savings of a prescribed amount, it is only fair, in the context of
today’s contemporary society, to give a broader interpretation to the word, in
the light of the Islamic doctrine of Masalih al-Mursalah (public
interest), in order to enable us to apply the institution of Zakat in a
more practical manner, towards providing a solution to the problems faced by
the destitute in today’s society. Thus,
‘Zakatable wealth’ of today should also include any annual savings,
which the amount is prescribed by the Shari’ah,
be it in the form of currency or other forms of income or profits, made up from
any business or other types of legal transactions.
iv) The
reimbursement of Zakat should also not be narrowly interpreted to be a
mere act of charity, which means to help the beggars only. Broadly speaking, Zakat is an
institution aimed at eradicating poverty by providing financial protection to
the poor, the needy, the old and the weak, the unemployed, the disabled, the
widows and so on, regardless of whether they asked for it or not. The fact is that, Allah (swt)
has determined that, in everyone’s, wealth there is a portion for the people of
the above classes. Allah (swt)
says to the effect:
,وفي أموالهم حق للسائل والمحروم-
"And in their
wealth and possession, the right of (needy), him who asked and him who (for
some reason) was deprived ".
v) There is
also another most common misconception of the word ‘Zakat’ among
Muslims, that Zakat is being Divinely sanctioned for the Muslims only,
while rendering the non-Muslims ineligible to enjoy any benefits of the Zakat
institution. This is not so. Responding to this misconception, there are
many Scholars who have accepted the idea that, the institution of Zakat
is meant to be for both the Muslims and also the non-Muslims alike.
This concept is further acknowledged by Abu Ja’far Mohd. B. Jarir al-Tabari. Based on these arguments, it is hence a
hypothetical solution that, Zakat provides the most practical solution
to the problems faced by the poor and the needy in the contemporary society, as
it protects each and every member of the society, regardless of difference in
religious beliefs. It is very clear by
the decree of Allah (swt), whereby the recipients of Zakat
need not to be Muslims alone
M.A. Mannan, thus, further clarified it as follows:
Zakat acts as a
unique measure provided by Islam to abolish poverty from the society by making
the rich live to the social responsibilities they have. In the economic sphere, Zakat prevents the
morbid accumulation of wealth in a few hands and to defuse it before it assumes
threatening proportions in the hands of its possessors, as it is a compulsory
contribution of the Muslims to the State Exchequer.
Underlying Objectives of Zakat
Every
injunction, which had been revealed by Allah (swt) must have its
own rationale and objectives. Hence, as
regards to the institution of Zakat, Allah (swt) has
sanctioned it with the aim of providing social security for the poor and the
needy in the society, and to develop a balanced economic growth,
as well as to become the act of spiritual purity and development. The principal objectives of Zakat, in
other words, could be summed up as follows:
i) It is an
act of purifying one’s soul, by enabling one to become closer to Allah (swt). It is thus justified in the Holy Qur’an
when Allah (swt) says to the following effect:
,ولكن البر… وآتي المال على حبه ذوى القربي واليتامى
والمساكين وابن السبيل والسائلين وفى الرقاب… وآتى الزكاة-
"… But it is righteousness … to spend of your substance …
for your kin, for orphans, for the needy, for the wayfarer, for beggars and for
the ransom of captives .. and practice regular charity (Zakat)…"
ii) It is also
meant to be an act of protecting the poor and the needy from any type of
financial and material constraints. In
other words, it strongly opposes the system of capitalism,
which means, it does not allow one to practice the habit of hoarding goods and
wealth. Allah (swt) has indeed warned
people against any act of capitalism in the following sanction:
,ويل لكل همزة لمزة.
الذي جمع مالاً وعدَّده. يحسب أنَّ ماله أخلده. كلاَّ لينبذنَّ في الحطمة. وما
أدراك ما الحطمة. نار الله الموقدة* التي تطلع على الأفئدة. إنها عليهم مؤصدة. في
عمد ممدة*-
" Woe to every
scandalmonger and backbiters, who piled up wealth and layeth it by. Thinking that his wealth would make him last
forever. By no means he will be sure to
be thrown in to that which breaks to pieces.
And what will explain to you that which break to pieces? (It is) fine of (the wrath of) Allah (swt)
kindled (to a blaze). The which doth
mount (right) to the hearts. It shall be
made into a vault over them. In columns
outstretched? "
Such hoarding attitude of one's wealth is against the rules of
Allah (swt) and it surely deprives the poor and destitute from their actual rights. It is thus ruled out by Allah (swt) as follows:
,وفي أموالهم حق للسائل والمحروم-
"And in their wealth and possessions (was remembered) the
right of the (needy). Him who asked and
him who (for reasons) was prevented (from asking) ".
iii) It not only
benefits the poor but also the rich. The
poor and the destitute would benefit from the financial and material assistance
obtained from the rich, while the rich and wealthy will be handsomely rewarded
by Allah (swt) in the hereafter for their act of obedience to Allah
(swt).
iv) It also
plays a vital role in the progress of the spiritual aspect, economy and also
technology in the society, bearing in mind that, this Islamic institution of Zakat
benefits both the Muslims and the non-Muslims.
Dr. R.R. Marett views that, the “real progress is in charity”. Aldous Hoxley, meanwhile, observes that,
“technological advance” will become useless without the “progress in charity”.
v) While Zakat
functions as a means to eradicate poverty in the society, it also
simultaneously moulds the individuals into responsible and caring persons, who
are always ready to help the poor and those who are unfortunate.
vi) At the same
time, the institution of Zakat inculcates the spirit of brotherhood
in upholding social solidarity in the society.
vii) It, at the
same time, ensures an ideal sustainable social security for the poor, the
needy, the old, the disabled, and other unfortunate individuals in the society
regardless, of their religious beliefs, languages, races and so on.
viii) Finally, the
Islamic institution of Zakat also creates creative individuals who are
non-materialistic, self sufficient and always grateful for the bounties of Allah
(swt), enabling them to experience and enjoy vast spiritual development,
social solidarity and also material prosperity.
Socio-economic Impact of Zakat
As we have
discussed earlier, the institution Zakat does not only provide the basis
for social security but also plays many other important roles in the
society. The fundamental roles played by
Zakat, however, could be itemized as follows:
i) It provides
the society with soul and wealth purity,
developing the moral aspect, which mould the rich into being responsible and
caring about the poor.
At the same time developing the spirit of brotherhood and cooperation based on
goodwill in the society.
Moreover, it benefits the rich and the poor alike, whereby the rich will be
rewarded by Allah (swt) in the hereafter,
the poor will be thankful for the material assistance rendered to them under
the sanction of Allah (swt).
ii) It also
plays a vital role in providing a sustainable social security scheme in the
following ways:
By
providing material assistance for the poor, the needy and the destitute
in the society in order to fulfill their material needs , and enabling them to
be self-reliant;
By
catering the required assistance in the circumstances of unemployment,
insufficient medical expenses, for the old, the disabled and the handicapped,
as well as inadequacies to maintain one’s life, for widows and children with no
parents; and so on, on the basis of needy test.
By
helping other members of the society who might not be originally poor
materially and financially, but nevertheless, unexpectedly facing material or
financial constraints due to certain unexpected and unfortunate happenings,
such as having financial difficulties during traveling, etc.
iii) The
institution of Zakat also relieves a person from the burden of
insolvency should he or she is unable to settle the debts;
iv) Zakat
indeed also plays an extremely important role in protecting and helping those
who are sacrificing themselves in the path of Islam, in order to uphold the Deen
of Allah (swt) in this earth.
After
seeing the vital roles played by Zakat in the society, it is hence easy
to point out its significance as summarized below:
i) The institution of Zakat
benefits both the rich and the poor.
ii) It creates
members of the society with responsible and caring attitude;
iii) It
inculcates strong spirit of brotherhood, goodwill, cooperation and tolerance in
the society;
iv) It also
provides the society with purification of soul and wealth;
v) Zakat
provides material and financial security for the poor and other unfortunate
members of the society;
vi) It provides
both the Muslims and non-Muslims with material and financial protections;
vii) It also
seeks to relieve an insolvent from his unsettled debts;
viii) Like wise
it, helps those who are sacrificing themselves in the cause of upholding the
religion of Allah (swt).
Sources of Zakat Fund
After
ascertaining how the Islamic institution of Zakat could play its role in
providing social and spiritual security in the contemporary society, at this
point I will examine the sources of a Zakat fund. However, before we touch on this question, it
is wise to bear in our minds the following points:
i) Prior to
the full implementation of Zakat, it is of utmost importance to ensure
that, the sources for its fund are of tradable value and are Zakatable
in nature, due to the rapid economic growth in contemporary society. In order to arrive at a determination whether
the goods and properties are indeed Zakatable in nature (i.e. able to be
used as a legal Zakat fund), it is important to apply, inter alia; the
tradable test, which must be conducted in light of the Islamic principles of Qiyas
(analogy) and Masalih al-Mursalah (public interest) so as to come up
with more practical solutions on the test of tradability of the goods and
properties. This is to enable the society to obtain
maximum benefit from Zakat in ways recognized by Shari’ah.
Hence, in
order to determine whether the goods or properties used as the fund are indeed
tradable and Zakatable, the following three-fold tradable test may be
applied:
a) The goods or
properties to be Zakatable must be in the form of additional goods,
properties or profits after deducting one’s self expenditures, family
maintenance and settlement of debts;
b) The goods or
properties should be Zakatable on manual basis;
c) The goods or
properties to be Zakatable must reach a certain amount determined by Shari’ah.
ii) Although,
the modern social security system creates its fund from inter alia,
taxes imposed on financially able citizens,
and the Islamic institution of Zakat on the other hand, also creates its
fund from mandatory taxes imposed on the tradable goods and properties
the fact is that, Zakat still presents the society with a more ideal and
practical solution compared to the modern system. This is because Zakat is not only a
mere physical act of paying taxes by able persons, but it goes beyond that
limit, as we find that it is also an act sanctioned by Allah (swt)
Himself, embodying spiritual, moral and educational elements. Whereas, the modern social security system
offers only material assistance to the needy public, the institution of Zakat
not only confers material assistance, but also contains spiritual moral and
educational benefits.
After
carefully digesting the two points already forwarded, let us see the proposed Zakatable
goods in the contemporary world:
i) Gold, silver
and diamond.
ii) All sorts of
monetary savings, which are derived from salary,
premiums obtained from legal transactions and other sources.
iii) Assets and capitals of any company or
business firms.
iv) Stocks and shares.
vi) Any business license;
vii) Hoarding articles or properties;
viii) Agricultural products such as paddy, palm
oil, cocoa, etc.
ix) Wealth obtained from mine such as tin,
petrol, natural gas, etc.
Zakat : an able alternative to
Social Security System
After
scrutinizing both systems above, we have seen the similarities and differences
on both systems. Hence, for the purpose
of further analysis between the two systems, let us make a comparative
evaluation on the programs designed by both systems:
i) The modern
social security system provides a two-fold solution in helping the poor and the
needy in the society. The two-fold
solution is classified as the contributory-based scheme (whose fund is derived
from willful contribution from employers and employees); the non-contributory
based scheme (whose fund is created from the State’s tax revenues). The institution of Zakat on the other hand, offers a one-fold scheme, which is broader
in nature. This scheme is
non-contributory one, in which the needy people of the society are to be helped
out by the compulsory tax (Zakat)
payable by the rich. In other words, the needy people who are
benefited by the Zakat are on
non-contributory basis under the principles of Zakat.
ii) The type of
beneficiaries described by the modern social system such as the poor, the
disable, the old, the handicapped and so on are[136]
also approved by the Shari’ah in the light of the institution of Zakat under the broad meaning of Fuqara and Masakin, which means the ‘poor’ and the ‘needy’. Such broad interpretation of the above two
words is based on the doctrines of Qiyas
(analogy) and Masalih al-Mursalah (public interest) and will be
dealt with in the forthcoming section.
The
dissimilarities between both the modern and the Islamic systems as we have seen
so far, are undeniable. However, it must
always be remembered that, the Islamic institution of Zakat offers a
much wider role and scope in its application, making it to be the most suitable
and practical method in providing the poor and the needy with a proper social
security. In other words, among the
things offered by Zakat, which are not available under the modern system
are:
i) The Zakat
fund helps an insolvent to settle his debts provided that, the insolvent does
have sufficient financial ability to settle the debt. As al-Tabari
reveals:
The
insolvent is the indebted without extravagance.
The rule is required to pay his debt from the treasury (Zakat).
ii) It also
sets up a scheme to provide necessary financial aid for the wayfarer
who unexpectedly faces financial risk regardless of rich or poor.
iii) The Zakat
fund extends its services to those needy people who are striving in the path of
Allah (swt). The people who are striving in the path of Allah
(swt) include fellow students who are seeking knowledge, as well as
those who sacrifice themselves, their property, energy and time in establishing
the Deen of Allah (swt) in any manner.
iv) Zakat
also relieves those who are under financial bond. In the contemporary world, those who are
under this category included detainees and hostages who could only be released
by their captors on the payment of certain amount of ransom.
v) It also
provides reasonable wages for those who are involved in collecting the Zakat.
vi) Zakat
also provides protection for Muslims and non-Muslims alike,
rendering it to be one of the most equitable means of social security. As Prof. Abdur Rahman I. Doi
quotes, in support of this view that when Sayyedana Umar (r.a)
was traveling to Syria
and saw a needy Christians he (r.a.) ordered that, they should be looked after
by the Zakat fund.
vii) The
institution of Zakat also creates a caring society,
inculcating the strong spirit of brotherhood, goodwill, tolerance and
cooperation among the members in the society.
viii) Last but not
least, this Islamic institution also provides the society with wealth and
spiritual purification.
Practicality of the terms “Fuqara”
and “Masakin”.
We have seen
earlier how the modern social security system derives a two-fold solution to
help the poor and the needy in the society, i.e. through the contributory-based
scheme, whose fund is obtained by way of willful contributions by the employers
and the employees, and the non-contributory-based scheme, whose fund is
collected from the state tax revenues.
We have also seen how the institution of Zakat derives one-fold
method in helping the poor and the needy on non-contributory based scheme,
whereby the fund is derived from obligatory taxes paid by the able citizens.
The issue to
be determined before us now is, whether the type of beneficiaries prescribed by
the modern social security system (such as the poor, the disabled, the
handicapped and so on) are within the ambit of the Fuqara and Masakin
as mentioned in the Holy Qur’an? The answer is, yes, the words Fuqara
and Masakin do cover all the beneficiaries prescribed under the
non-contributory based scheme of the modern social security system, based on
the Islamic doctrines of Qiyas and Masalih al-Mursalah. For justification, the following arguments
are forwarded.
i) The
beneficiaries under the non-contributory-based scheme prescribed by modern
system are determined on the basis of the ‘needy test’, while the meaning of
the words Fuqara and Masakin are also based on the ‘needy test’
i.e. the beneficiaries of the fund must indeed be based on the need of
financial or material assistance. In
fact, the broad interpretations of the two words include not only those
beneficiaries prescribed by the modern scheme but also those who are not
prescribed by it, but it includes any person so long as one falls within the
definition of needy. Hence, it is only
natural to deduce from it the notion that the definitions of beneficiaries
under the modern social security system falls within the broad interpretation
of the words Fuqara and Masakin in the Holy Qur’an at
9:60.
ii) The broad
interpretation of the words Fuqara and Masakin are also shared by
some Islamic dictionaries for example, Abdullah Yusof Ali has interpreted the
word Miskin as ‘needy’, and Faqir is as someone who is in
financial need’. Bassam Sulaiman also shares the same view as
Abdullah Yusuf Ali on the interpretations of the definition of the words Faqir
and Miskin.
The dictionary in Islam on the other hand, defines the word Faqir as the
‘poor’ and Miskin as one who has no property whatsoever. Another encyclopedia defines the word Faqir
as a beggar, a dependent or the one who is in need as opposed to Ghani
or a rich,
while another encyclopedia of Islam defines the word Miskin as the poor,
the most needy, miserable or the person whom it is an obligation for believers
to support. Therefore, the broad definitions and
interpretations of the word Faqir and Miskin given by the above
dictionaries and encyclopedias of Islam further enhance the view that, the
ambits of both words cover the poor and the needy, who not only cover the
prescribed beneficiaries under the modern system, but also other beneficiaries
besides it.
iii) The fact that
both Faqir (the poor) and Miskin include anyone who is in need of
material or financial assistance (which of course includes those beneficiaries
prescribed by the modern social security system) is further strengthened by the
fact that, even the modern English dictionaries give broad interpretations of
both words. For instance, The New
Shorter Oxford English Dictionary defines a ‘poor’ as a person who is unfortunate,
needy, destitute or indigent or the one who is lacking or procure comforts of
necessities of life, or the one who is having less than is wanted or expected. The same dictionary also defines the word
‘needy’ as the one who is ‘poor’, destitute or a person without necessities. Meanwhile, Webster’s New Twentieth
Century Dictionary defines ‘poor’ as the one who is poor, or needy or
indigent, or money less or insolvent, lacking pleasure or comfort. It also defines ‘poor as the one who is
lacking material possessions or having little or no means to support one self. The same dictionary defines the word ‘needy’
as the one who is poor or not having enough to keep up an adequate standard of
living.
Based on all
these logical arguments, it is of no surprise that we have finally came to the
conclusion that, the words Fuqara and Masakin as mentioned by Allah
(swt) in the Holy Qur’an at 9:60 indeed carry broad
interpretations, based on the doctrines of Qiyas and Masalih
al-Mursalah, so as to include anyone, who is in need of financial or
material assistance, which of course include also the prescribed beneficiaries
determined by the modern social security system.
Can Zakat
Provide A Social Security for the Multi-Religion Needy Society?
The modern
social system was invented based on conventional thought in order to cater for
the poor and the needy in the society, regardless of their race and
religion. The question here is, can Zakat
and its fund offer similar protection to the poor and the destitute in today’s
modern society, which is multi-racial and multi-religious?
We have
already seen that Zakat in practice is a compulsory tax, accumulated for
those whose income and property has reached to a certain amount. However, as regards to the question whether
it is able to cater for multi-religion society or not, the Ulama or
Islamic jurists have mixed views on it.
Some of them are of the opinion that, Zakat is a compulsory tax
collected from Muslims and it is therefore, should provide social security for
Muslims only. However, the majority of the Ulama are
of the view that, Zakat is an Islamic institution, which not only
provides social security for the Muslims, but also for the non-Muslims who are
poor and needy, regardless of differences in religion, color or sex. This view is indeed justified by the
following evidences:
i) The words
of Faqir and Miskin mentioned in verse 9:60 are ‘Am
(general) in nature so as to include any ‘poor’ or ‘needy’ person be them
Muslims or non-Muslims. It is indeed
justified by the case when the second Caliph of Islam, Sayyedana Umar
(r.a.) once saw a Jew begging from other people due to old age and
financial constrain. He (r.a),
upon witnessing this situation recited the Holy verse
which means:
“undoubtedly the Zakat is for the poor and the destitute.”
He
(r.a.) then said that, the recipients of Zakat must not necessarily be
Muslims only, but should also be extended to the non-Muslims.
ii) Once, the
second Caliph (r.a.), in another occasion, saw some Christian lepers. He (r.a.) ordered that they should be given Zakat
and be looked after by the property.
iii) During the
period of Sayyedana Abu Bakar (r.a.) the first Caliph, Khalid ibn Walid
(r.a) wrote in respect of the Christian inhabitants of al-Hira in
Iraq,
saying that:
Any old man incapable of work or anyone who has suffered from
any calamity, or any person who was rich and suddenly became a pauper asking
for charity from his people, Jizyah must not be collected from him. He and his family, as the contrary, should be
maintained through the Baitul Mal of Muslims.
iv) The First
and Second Caliph (r.a.) of Islam had also established an organization for
social security, which functioned for the betterment of the needy, both Muslims
and the non-Muslims.
v) Imam Zufar
(r.a.) ruled that, the non-Muslims who are needy and poor should also be helped
out of the Zakat fund, which may bring them closer to Muslims.
vi) The Maliki
and Zaidi Schools of law are also of the opinion
that, the non-Muslims who are poor and needy should also be given the
opportunity to share the benefits of the Zakat fund, so as to soften
their hearts in order to become more friendly and closer to Muslims.
vii) Shaikh Shaft
al-Din al-Nawawi also expressed that it is a common obligation to help the
needy and feed the hungry
regardless of their religion.
viii) Shaikh
Shamsuddin Ramli, meanwhile, acknowledged that:
The non-Muslims are like Muslims when it comes to relieving
them from their sufferings. It is
essential for all Muslims to remove any harm coming to them. Apart from food or clothing of the needy
non-Muslims, it is also Fardu Kifayah to help them in the treatment of their
sickness and giving fees to the doctors, and buying medicine etc.
ix) Prof. Abdur
Rahman I. Doi accepts the view that, although the non-Muslims do not contribute
to the Zakat fund they should be assisted by it. He went on to say that non-Muslims are indeed
part and parcel of the Islamic State.
Hence, it is the responsibility of the state to provide social security
for all Muslims and non-Muslims alike.
All the
above-mentioned justifications prove that the Islamic institution of Zakat
and its fund is able to provide a meaningful social security for all members of
the society, regardless of their color, race, sex and religion. As long as one
falls within the definition of needy and destitute he could be aided out by the
institution of Zakat.
Can Zakat Provide a Basis for the Modern Social Security
System? An Analytical Submission
Under the
contributory-based scheme of modern social security system, among the benefits
available are retirement pensions, widows’ benefits, invalidity benefits,
unemployment benefits and sickness benefits. This scheme is operated on the basis of
willful financial contributions by the employers and the employees, while it
works for the designed-people on the needy test basis. Although, Zakat is the collection of
compulsory tax paid by those who are financially able, it is spent for the
security of needy people in the society.
Since beneficiaries designed under the contributory-based of modern
social security system are on needy test basis hence, it is obvious that the Zakat
could undoubtedly provide a social security for those needy people on the basis
of needy test. The only difference here
is that, those needy are helped out under the modern social security system
upon the contribution basis, whereas under the principles of Zakat they
are helped out on non-contribution basis.
Here, I
would like to analyze with a justification that the beneficiaries under the
contributory-based scheme of the modern social security system could be catered
by the institution of Zakat on the needy test basis. The justifications are as follows:
a) As regards to
the concept of retirement pension, it was even practiced long time ago during
the era of the Caliph Umar (r.a) who set up a special Dewan or
department to manage the retirement pension.
He even once ordered the government to pay regular pensions to both
Muslims and non-Muslims. Because, retired is a jobless with no income,
hence is usually considered as a needy. Thus, those who are considered as a
needy surely deserve Zakat.
b) As regards the
widow’s benefits, it is one of the great virtues to look after the welfare of
the widows as the Holy Prophet (saw) once said to the effect:
الساعي على الأرملة و المسكين كالمجاهد في سبيل الله أو كالذي
يصوم النهار ويقوم الليل
The one who looks after and works for a widow and for a poor
person is like a warrior fighting for Allah’s (swt) or like a person who fasts
during the day and prays all the night...”
Thus, such welfare is also on the needy test.
c) An invalidity
benefit is for those beneficiaries who are unable to work and earn their
necessities due to sickness
and such a concept is also in harmony with the commandments of Allah (swt)
in helping the needy, as He (swt) narrated to the following effect:
,وفي أموالهم حق
للسائل والمحروم-
And in their wealth and possession, the right of (needy), him
who asked and him who (for some reason) was deprived.
d) Unemployment
benefits are meant for those who are unemployed due to crisis in the job market
or under qualification. Islam has indeed indicated that, it is a
moral obligation to help those who are unemployed and face difficulties as the
result of that phenomenon. The Holy
Prophet (saw) said to the effect:
من نفس عن مؤمن كربة من كرب الدنيا نفس الله عنه كربة من كرب يوم القيامة، ومن يسر على معسر يسر الله عليه في الدنيا
والآخرة
Whoever solves the worldly difficulties of a believer, Allah
(swt) will remove from him one of the grieves of the Day of Judgement. Whosoever alleviates (the lot of) a needy
person, Allah (swt) will alleviate (his lot) in this world and the next ...”
e) There are some
situations whereby some people are unable to maintain themselves as well as
their families due to unexpected sickness, which hamper their ability to earn
their basic necessities and needs. As
such, Islam also encourages the people to help these types of needy people as
we find the Prophet (saw) saying to the following effect in one of his
traditions:
ومن يسر على معسر يسر
الله عليه في الدنيا
والآخرة
… Whosoever
alleviates (the lot of) a needy person, Allah (swt) will alleviate (his lot) in
this world and the next….
Furthermore,
Shaikh Shamsuddin Ramli, in support of his view said that, in the case of a
person facing hardship due to sickness or any other cause, which results him in
becoming poor and needy. Such a person regardless of religion should be
assisted, not only by providing cloth and food, but also with all the necessary
aids of medical treatment.
On the other
hand, under the non-contributory based scheme of the modern social security
system, the beneficiaries may be helped based on the fund financed by the
compulsory tax imposed on those who are materially and financially able. Indeed, both the modern security system and
the Islamic system of Zakat offer such scheme. The only difference that exist between the
two systems is that, under the modern system the beneficiaries have been
‘specified’, whereas the institution of Zakat covers unlimited category
of beneficiaries under the broad application of the words Fuqara and Masakin
upon the application of the needy test, which of course, includes not only the
beneficiaries specified under the modern social security system, but also any
person of the society so long as he/she falls under the meaning of needy and
destitute, regardless of one’s religion, race, sex or even colour.
A closer
look at the application of the notion of the institution of Zakat will
reveal that, it besides acknowledging the limited recipients specified by the
modern system, also extends its helping hand to the other type of needy people
living in the society.
i) For
instance, the institution of Zakat does not oppose the material and
financial assistance for the under aged children under the modern social
security system as they are considered among the needy in the society. The Holy Prophet (saw) in fact, encouraged
the people to look after the needy children when He (saw) said to the effect:
أنا وكافل اليتيم
في الجنة هكذا..
I and the person who looks after an (needy) orphan and
provides for him will be in paradise….
The
under aged children are income less and thus, they are considered as a needy to
maintain themselves sufficiently. The
Holy Prophet (saw) emphasized to look after any need people living in the
society. He (saw) said to the effect:
الساعي على…و المسكين كالمجاهد في سبيل الله
The one who looks after and works for … (the) poor person is
like a warrior fighting for Allah’s (swt) cause….
ii) The Islamic
institutions of Zakat also shares the same notion with the modern social
security system that, single parents (such as those who lost their spouses
through death or divorce) should be financially and materially helped out, as
the Holy Prophet (saw) said to the effect in one of the traditions that:
الساعي على الأرملة و المسكين كالمجاهد في سبيل الله
The one who looks after and works for a widow and for poor is
like a warrior fighting for the cause of Allah (swt).
iii) As far as one’s
disability is concerned, Islam has also encouraged fellow human beings to look
after those who are helpless and disabled in order to sustain a meaningful
life. In Islam, it has always been a
responsibility of the able person to remove all hardships from the disabled and
helpless, as we find the Prophet (saw) mentioned to the effect in the coming
tradition:
من نفس عن مؤمن كربة من كرب الدنيا نفس الله عنه كربة من كرب يوم القيامة، ومن يسر على معسر يسر الله عليه في الدنيا
والآخرة. والله في عون العبد ما كان العبد
في عون أخيه
Whosoever removes a worldly grief from a believer, Allah (swt)
will remove from him one of the grieves of the day of judgement. Whosoever alleviates (it from) a needy
person, Allah (swt) will alleviate (his lot) in this world and the
next.... Allah (swt) will aid a servant
so long as his servant aids his brothers…”
iv) Zakat
also shares the policy with the modern social security system that, financial
and material assistance to the income supplement should also be reserved for a
person whose income is low and insufficient to support his own family. Indeed, Islam regards it as a duty, which has
to be shouldered by those who are financially and materially secured. The Prophet (saw) expressed in one of the
traditions that one who removes the grief of another will obtain the help from Allah
(swt).
v) The very
idea of providing free health service for those who are unable to pay for
medical and health treatments (such as by providing medicines, subsidizing in
treatments, sick-beds accommodations at clinics and hospitals, food for those
who are hospitalized, etc.) is very much in line with Islamic principles,
teachings and belief. The institutions
of Zakat, in fact, is also in favor of providing even more extensive
assistance in this regard, by providing total exclusion from medical expenses
and so on. Moreover, in the view of Shaikh Shamsuddin, both the Muslims
and the non-Muslims are entitled to any kind of assistance under Zakat.
vi) Other types
of beneficiaries under the modern social security system who are entitled to
obtain benefits such as attendance allowance, mobility allowance, invalid care
allowance, housing benefits, social funds and so on
are indeed recognized under the Islamic institutions of Zakat.
Practicality of Zakat in the Contemporary Socio-economic
& Cultural Reality
It has
already been acknowledged in the light of our earlier analysis that, the
institution of Zakat provides material and financial assistance for the
modern needy society as a whole, regardless of one’s religious belief, color,
race or even sex. This phenomenon
presents us with the clear idea that Zakat could act as an ideal
solution towards helping the poor and the needy in the modern world of
today. The next question to be answered
is, how can we turn this fact into a reality?
Hence, in materializing this noble aim, the following logical
methodologies could be adopted:
i) Inculcation
of the significance of Zakat
It
has already been realized that Zakat contains more significance towards
not only the material aspect, but also social, moral and spiritual aspects of
the society as compared to what is offered under the modern social security
system. Zakat, as we have already
seen, also extends its role to each individual in the society who is poor and
needy, regardless of one’s sex, religion, race, color or whatsoever reason may
be. Hence, in order to educate and inculcate such phenomenon and ideas of
Islamic institution of the Zakat, exhibitions and seminar dialogues
could be held for the public and government officials around the globe. This effort must always be accompanied by
publishing of writings, articles and journals in propagating the idea and
significance of the institution of Zakat in the contemporary society.
ii) Correction
of the misconceptions about Zakat
The
well-known misconception about the institution of Zakat, which portrays
it as an institution for beggars and low-class people should be rebutted in
upholding that Zakat is a form of social security provided for those who
are poor and in order to transform them into self-reliant. Such material and financial assistance is
indeed a duty and an obligation upon those who are able materially and
financially, as it is aimed at assisting and accommodating these unfortunate
members of the society, making them welcomed and not to degrade their
personalities.
iii) Pragmatic
application of the rules of Zakat based on the Islamic principles.
It
is undeniable truth that the society is always developing and changing with
culture, thinking and so on. Hence, in
sustaining the development and changes, there is a need to apply the rules of Zakat
in the light of the Islamic concept of Siasah al-Shari’ah’ which
stresses the application of all Islamic principles based on the doctrine of Qiyas
(analogy) and Masalih al-Mursalah (public interest). Such move is needed in order to ensure a
successful application of the Islamic rules of Zakat based on the
doctrine of Siasah al-Shari’ah, in order to provide financial and
material protection for the poor, the needy and the unfortunate in today’s
society, which inter alia, surely eliminates one’s hardship while securing
a comfortable life for all. It is indeed
in line with Qur’anic principles where Allah (swt) says:
يريد الله بكم اليسر ولا يريد بكم العسر-
"… God (swt)
intends every facility for you; He does not want to put you in difficulties…"
Final
Remarks
Finally, it
is sincerely submitted at the final stage of this research that, the Islamic
institution of Zakat is unique and is capable of providing practical and
ideal solutions for the contemporary world, in the provision of social security
for the least fortunate ones, regardless of their religious beliefs, races,
languages, colors and sexes, and without any discrimination.
Hence, in my
concluding remark, I would like to come up with some possible suggestions on
the applications of Zakat in today’s society and also some aspirations
from this divine institution of Zakat.
Summary
in General
i) The
institutions of Zakat is expressly a non-contributory based scheme whose
fund is paved by the collection of compulsory taxes collected from those who
are financially and materially able, aimed at providing social security for the
poor and the needy in the society, regardless of their religious beliefs,
sexes, races and nationalities or whatever reason may be.
ii) The
institution of Zakat does not only provide a material security for the
needy but it also ensures significance to one’s spiritual, social and moral
aspects.
iii) The proper
application and administration of Zakat does not only guarantee a
meaningful social security and solidarity
but also provides an ideal treatment to the today’s most common threat of the
capitalism.
iv) In achieving
all the above significance, it is hence, extremely essential for the Ummah
to administer the rules of Zakat in the light of the Islamic principles
of Siasah al-Shari’ah, whose operation is based on the Islamic doctrines
of Qiyas and Masalih al-Mursalah.
In order to rescue the unfortunate ones and provide them with a
comfortable life, Allah (swt) says:
يريد الله بكم اليسر ولا
يريد بكم العسر-
"… Allah (swt) intends every facility for you. He (swt) does not want to put you in
difficulties…"
v) Based on the
analysis, it is admitted that, the institution of Zakat is able to
provide not only the basis for the modern social security system, but also many
other significances for the human lives not only in this world, but also in the
hereafter, as proved earlier.
Possible
Suggestions towards Practices of Zakat in the contemporary Reality.
Towards an
application of the institution of Zakat in ensuring a better social
security to the contemporary society, the possible suggestions are as follows:
i) It is
extremely important to highlight that the institution of Zakat besides
being able to provide for the needy with material and financial security, also
possesses its own other significance in social spiritual and moral aspects of
human lives. This institution does not
provide a meaningful social security for the Muslims only, but for non-Muslims
too. It is hence, possible to inculcate
these significances in the hearts of today’s society through writings and
publishing articles and magazines, and also through organization of exhibitions,
seminars and dialogues, which could be held for both the public and also the
government officers.
ii) The
misconception that Zakat is an institution, which caters for the beggars
and low class citizens, should be refuted.
This is because, Zakat in the view of the Shari’ah is an
obligatory tax imposed upon the materially and financially able persons, in
helping the unfortunate ones (the poor and the needy) towards upgrading their
lives based on the spirit of brotherhood.
It is not meant to downgrade the position of the poor and the needy in
the society. Moreover, the fund of Zakat
should not be disbursed as a charity to the poor, but it should be utilized
accordingly with the aim of upgrading the life of the needy and paving the way
of brotherhood between the rich and the poor.
iii) The
administration and application of the rules of Zakat should be done on
the basis of Siasah al-Shari’ah in an effort to meet the demands of the
ever-developing society. Such a move is
aimed at ensuring that Zakat remains as the most ideal and practical
solution for the society, designed to provide social security system to all
citizens, regardless of their religious beliefs, races, colors or sexes.
Aspirations
It is
sincerely hoped that, the Islamic institution of Zakat could slowly gain
the recognition of the modern world as the most ideal and practical solutions
in helping the poor and the needy living in the contemporary society. Such aspiration is not just based on the
commandments of Allah (swt), but also based on the fact that it may
cater for each and every individual in the needy society, the Muslims and the
non-Muslims alike, as justified earlier in this short research. Zakat is engineered to upgrade the material
and financial status of the needy, which is further enhanced by some other
added significance such as in the aspects of social, moral and spiritual. Zakat operates on the Islamic concept
of brotherhood aims at strengthening the unity of the nation. Furthermore, as
its application is based on the principle of Siasah al-Shari’ah, it is
not impossible to see the institutions of Zakat emerges as the most
ideal and practical solutions in providing the contemporary society with the
perfect social security, accepted by each member of today’s world.
