What is Zakat-al-mal?

Zakat-al-Mal is the obligatory charity paid by an individual to the needy. It is obligatory on an individual who possesses wealth equal to or above a minimum amount called Nisab for an entire lunar year. For the purpose of calculating Zakat, different categories of wealth are defined. Nisab for the category of "Personal wealth" is three ounces of gold (or its equivalent amount in money). However, this amount is defined for each type of wealth separately. See under Nisab.