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Fatwas / Zakat / Zakat on end-of-service gratuities

publish date:2014-09-07 12:01 PM | Views:4643
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Dear respected Shaykh, assalamu alaikum wa rahmatullahi wa barakatuh. What is the ruling of Zakat on an end-of-service gratuity? زكاة في مكافأة نهاية الخدمة

Answer

Praise be to Allah, and may Allah’s peace and blessings be upon the Messenger of Allah, his family and his companions. Wa alaikum assalam wa rahmatullahi wa barakatuh. As to what follows: In response to your question, we say:   There is no Zakat on end-of-service gratuities, pensions, and other payments that are given to the employee at the end of his contract, because a condition of the compulsoriness of Zakat on a person is that he should own the money, and (in this case) the employee does not own the money. He cannot act with regard to it, or demand it. It is money arranged by the responsible authorities like governments, organizations and companies in a particular manner, and the employee deserves this money at the end of his contract. Thus, there is no Zakat on this money before the worker gets it or after he receives it.    


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