Hijri vs Gregorian Zakat rate
In one sentenceA rule that sets the Zakat rate by the type of financial year: 2.5% of the base if it is Hijri, and 2.57768% if it is Gregorian because it is longer.
Simply put
The Sharia rate is 2.5% per Hijri year, and the Gregorian year is about 11 days longer, so the rate rises slightly to 2.57768% to cover the extra days.
Most businesses have a Gregorian financial year ending on 31 December, so they use 2.57768%.
Worked example
A trading establishment with a Zakat base of 420,000 SAR.
Zakat if the year were Hijri420,000 × 2.5% = 10,500 SAR
Zakat because the year is Gregorian420,000 × 2.57768% = 10,826.27 SAR
Difference10,826.27 − 10,500 = 326.27 SAR
Zakat due (Gregorian year)10,826.27 SAR
Formula: Zakat = Zakat base × 2.5% (Hijri) or × 2.57768% (Gregorian)