Severance Package

Quite often, employers offer a severance package while laying off employees from the job. This package includes some monetary and some non-monetary benefits. Monetary compensation is Zakat-able if that money has not been spent at end of a person’s Zakat year – thus he will pay Zakat thereon 2.5% of the amount. On the other hand, if he has used the money to buy a house, before the end of his Zakat year, no Zakat will be payable on that.

To read more about detailed information on Zakat, click here…