Usually if a person gets a gratuity, it will definitely be transferred to a savings account. Therefore, should the zakat be paid on the gratuity or is it sufficient to pay only zakat on savings? 

According to Selangor Zakat Advocacy Consultant Ustaz Hamizul Abdul Hamid – through his partnership with the Waqaf, Zakat and Endowment Management Center at Universiti Putra Malaysia, gratuity money should be paid zakat as soon as possible. According to him, after paying zakat based on the amount obtained, only then can the money be transferred to a savings account or Tabung Haji. This savings will then be paid zakat on when the haul period of a whole year is complete. 

However, if you are worried about being charged zakat twice – that is, once on gratuity money and again on savings, don’t worry because the gratuity zakat that has been paid is considered an “expense” that can be deducted from the savings zakat calculation at the end of the year.

Of course, there is no need to fear if our property or income decreases due to paying zakat. Indeed, the practice of paying zakat can “purify” our property, and also elevate a person’s status with the grace and permission of Allah SWT. In fact, with the proceeds of zakat distributed to those in need, it is also an act of ibadah that helps the economic growth of Muslims.

As stated by the leading commentator of the Qur’an, Sheikh Muhammad Mustafa al-Maraghi:
“That is, with that charity you can purify their souls and elevate them to the level of good people by doing good deeds so that they deserve happiness in this world and the hereafter.” (Tafsir al-Maraghi).

Indeed, the obligation to pay zakat is indeed important, so much so that it is one of the pillars of Islam. Through zakat activities, the ummah and society can be developed, and hopefully it will lead to goodness for all Muslims.