Zakat on End-of-Service Gratuity Calculator — Saudi Arabia
Calculate the zakat on your gratuity after you receive it, whether you wait a full lunar year or add it to your existing zakatable wealth.
The amount you received and still hold.
Editable reference value; used to value gold and to set the nisab (85 g).
🔒 Worked out in your browser — nothing is sent to a server
Zakat due
1,125.00 SAR
2.5% of net zakatable wealth 45,000.00 SAR
Breakdown
| Total zakatable assets | 45,000.00 SAR |
| Debts deducted | 0.00 SAR |
| Net zakatable wealth | 45,000.00 SAR |
| Nisab (85 g of gold) | 34,850.00 SAR |
| Zakat rate | 2.5% |
How it's calculated
An end-of-service benefit becomes your money when you receive it, so the rules of zakat on wealth apply: 2.5% once it reaches the nisab and a full year has passed. The nisab is the value of 85 g of gold, about 34,850 SAR at 410 SAR per gram, a reference price you can change. Before receipt no zakat is due according to most scholars, because the money is not yet settled in your ownership.
After receipt there are two well-known approaches. The first, the majority scholarly view, is that a new zakat year starts for the benefit on the date you receive it, and you pay 2.5% of whatever remains once a lunar year has passed. The second, a practical approach many people follow, is to add the benefit to your existing zakatable wealth and pay on it at your usual zakat date even if a full year has not passed over it. The calculator presents both without ruling between them; choose the one you are comfortable with or that a scholar has advised.
Under either approach the net figure is worked out after deducting debts you owe within the year, and if what remains of the benefit is below the nisab on its own it may still reach it once added to your cash, gold and investments. If you count your year on the solar calendar the rate is 2.577%. The amount of the benefit itself is calculated under Articles 84 and 85 of the Labor Law; use our end-of-service calculator or the Ministry of Human Resources and Social Development calculator to work it out.
- No zakat on the benefit before you receive it, according to most scholars; the count starts on the date of receipt
- Majority view: 2.5% of what remains of the benefit once a lunar year has passed from receipt
- Practical approach: add it to your zakatable wealth and pay on it at your usual zakat date
- Nisab = 85 g × the gold price per gram (34,850 SAR at 410 SAR per gram), and debts due within the year are deducted
Worked example
An employee receives an end-of-service benefit of 45,000 SAR and keeps all of it in their account until a full lunar year has passed, with no debts due, and the gold price is 410 SAR per gram.
- Nisab: 85 × 410 = 34,850 SAR
- Net zakatable wealth: 45,000 − 0 = 45,000 SAR, which is above the nisab
- Zakat: 45,000 × 2.5% = 1,125 SAR
Zakat due is 1,125 SAR. Had the employee added the benefit to other wealth paid on at a fixed date, the same 2.5% would be paid on it together with that wealth on its date, even before a full year had passed over the benefit.
FAQ
Is zakat due on the end-of-service benefit before I receive it?
Not according to most scholars, because before receipt the money is not settled in your ownership and you cannot dispose of it. The zakat rules start from the date you actually receive it.
I have received my benefit. When do I pay zakat on it?
The majority view is to wait until a lunar year has passed from receipt and then pay 2.5% of what remains. A common practical approach is to add it to your zakatable wealth and pay on it at your usual date; both approaches are followed, so if in doubt ask a qualified scholarly authority.
I spent part of the benefit during the year. What amount do I pay on?
Zakat is calculated on what you still hold when the year ends, not on the original amount. If what remains, together with your other zakatable wealth, is below the nisab, no zakat is due.
Are my debts and instalments deducted?
The calculator deducts debts you owe within the year before comparing the net figure with the nisab. Long-term instalments such as a mortgage are a matter of scholarly difference; the more cautious approach is to deduct only the instalments due within the zakat year.
How do I know the amount of my end-of-service benefit in the first place?
It is calculated under Articles 84 and 85 of the Saudi Labor Law: half a month's wage for each of the first five years and a full month's wage for each year after that, with the resignation fractions. Use our end-of-service calculator or the Ministry of Human Resources and Social Development calculator.
I put the benefit in a deposit or an investment fund. Is it still zakatable?
Yes. As long as you own it, it is zakatable wealth at its current value, whether held as cash, in a deposit or in a fund held for trading. Enter its current value under the benefit field or the investments field, but not both, so it is not counted twice.
Related tools
Sources
✓ Reviewed September 2026- Zakat, Tax and Customs Authority (ZATCA)
- General Presidency of Scholarly Research and Ifta
- End-of-service benefit calculator — Ministry of Human Resources and Social Development
Statutory articles this calculator applies
- Zakat on wealth — ZATCA guidance and classical fiqh
- Reference 24k gold price per gram used for the nisab