Zakat on End-of-Service Indemnity Calculator — Kuwait
Calculate the zakat on your indemnity in KWD 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
112.50 KWD
2.5% of net zakatable wealth 4,500.00 KWD
Breakdown
| Total zakatable assets | 4,500.00 KWD |
| Debts deducted | 0.00 KWD |
| Net zakatable wealth | 4,500.00 KWD |
| Nisab (85 g of gold) | 2,847.50 KWD |
| Zakat rate | 2.5% |
How it's calculated
An end-of-service indemnity 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, that is 2,847.50 KWD at a reference price of 33.50 KWD per gram, a price you can change in the calculator so the nisab moves with it.
After receipt there are two well-known approaches. The first, the majority scholarly view, is that a new zakat year starts for the indemnity 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 indemnity 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 indemnity 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%, because that year is longer than the lunar one. The amount of the indemnity itself is calculated under Private Sector Labour Law No. 6 of 2010; use our end-of-service calculator to work it out.
- The zakat rules start on the date you receive the indemnity, when the money is settled in your ownership
- Majority view: 2.5% of what remains of the indemnity 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 (2,847.50 KWD at 33.50 KWD per gram), and debts due within the year are deducted
Worked example
An employee receives an end-of-service indemnity of 4,500 KWD and keeps all of it until a full lunar year has passed, with no debts due, and the gold price is 33.50 KWD per gram.
- Nisab: 85 × 33.50 = 2,847.50 KWD
- Net zakatable wealth: 4,500 − 0 = 4,500 KWD, which is above the nisab
- Zakat: 4,500 × 2.5% = 112.50 KWD
Zakat due is 112.50 KWD. Had the employee added the indemnity to other wealth paid on at a fixed date, the same rate would be paid on it with that wealth on its date even before a full year had passed, and had the year been counted on the solar calendar the rate would be 2.577% instead of 2.5%.
FAQ
Is zakat due on the end-of-service indemnity 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 indemnity. 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.
What is the nisab in Kuwaiti dinars?
The nisab is the value of 85 g of gold, that is 2,847.50 KWD at a reference price of 33.50 KWD per gram. Gold prices move, so change the price in the calculator and the nisab changes with it.
I spent part of the indemnity 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 this year.
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.
What is the difference between 2.5% and 2.577%?
2.5% is the rate when the year is counted on the lunar calendar. If you pay on the solar calendar, that year is about eleven days longer, so 2.577% is used to account for the difference.
Related tools
Sources
✓ Reviewed September 2026- General Presidency of Scholarly Research and Ifta
- Zakat, Tax and Customs Authority (ZATCA)
- Labour Law in the Private Sector No. 6 of 2010, official text (PDF, English) — Public Authority of Manpower
Statutory articles this calculator applies
- Zakat on wealth — ZATCA guidance and classical fiqh
- Reference 24k gold price per gram used for the nisab