Zakat on End-of-Service Gratuity Calculator — UAE
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 AED
2.5% of net zakatable wealth 45,000.00 AED
Breakdown
| Total zakatable assets | 45,000.00 AED |
| Debts deducted | 0.00 AED |
| Net zakatable wealth | 45,000.00 AED |
| Nisab (85 g of gold) | 34,000.00 AED |
| Zakat rate | 2.5% |
How it's calculated
An end-of-service gratuity 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 34,000 AED at 400 AED 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 gratuity 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 gratuity 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 gratuity 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 gratuity itself is calculated under Article 51 of Federal Decree-Law No. 33 of 2021: 21 days' basic wage for each of the first five years and 30 days' wage for each year after that; use our end-of-service calculator to work it out.
- No zakat on the gratuity 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 gratuity 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 (34,000 AED at 400 AED per gram), and debts due within the year are deducted
Worked example
An employee receives an end-of-service gratuity of 45,000 AED and keeps all of it in their account until a full lunar year has passed, with no debts due, and the gold price is 400 AED per gram.
- Nisab: 85 × 400 = 34,000 AED
- Net zakatable wealth: 45,000 − 0 = 45,000 AED, which is above the nisab
- Zakat: 45,000 × 2.5% = 1,125 AED
Zakat due is 1,125 AED. Had the employee added the gratuity 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 gratuity.
FAQ
Is zakat due on the end-of-service gratuity 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 gratuity. 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 gratuity 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 gratuity in the first place?
It is calculated under Article 51 of Federal Decree-Law No. 33 of 2021 on the last basic wage only: 21 days' wage for each of the first five years and 30 days' wage for each year after that, provided you have completed one year of continuous service. Use our end-of-service calculator or check with the Ministry of Human Resources and Emiratisation.
Is zakat deducted automatically from the gratuity in the UAE?
No. Zakat is not deducted from the end-of-service gratuity or from salary; paying it is your personal responsibility, whether to a recognised zakat body or directly to those entitled. The same applies to a gratuity placed in a deposit or investment fund: it is zakatable at its current value as long as you own it.
Related tools
Sources
✓ Reviewed September 2026- General Presidency of Scholarly Research and Ifta
- Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations — UAE Legislation portal
- Ministry of Human Resources and Emiratisation (MOHRE)
Statutory articles this calculator applies
- Zakat on wealth — ZATCA guidance and classical fiqh
- Reference 24k gold price per gram used for the nisab