Umrah as an Employee Benefit — A Practical Guide for HR Leaders

For many Muslim employees, Umrah is a lifelong wish that keeps being postponed: for children's education, for parents, for a better time that never quite arrives. An employer who makes it possible gives something few rewards can match. It marks a long career, a retirement or a milestone in a way an employee and their family remember for the rest of their lives.

This guide is for HR and leadership teams considering Umrah as a recognition award. It covers why it works, how the costs are structured, the tax and invoicing points to check with your accountant, scheduling, duty of care, and how to start with a small pilot.

Why Umrah works as a benefit

• It is deeply personal. For a Muslim employee, Umrah has spiritual meaning that a cash bonus or a gadget cannot.
• It honours the whole family. Many employees will think first of a parent or spouse. An award that can include a spouse often means even more.
• It is memorable. Long after a bonus is spent, an employee remembers the employer who sent them for Umrah.
• It suits milestone moments: long service, retirement, or recognition of exceptional contribution.
• It can start small. One award for one long-serving employee is enough to begin.

Fairness matters. Umrah is a Muslim pilgrimage, so it suits Muslim employees. We suggest offering it within a wider recognition policy, so that every employee has an equivalent way to be honoured for the same milestone. The award should always be offered, never imposed: an employee may prefer something else, and that choice should be respected.

What it costs an employer (structure)

The cost of an Umrah award depends on a few choices:

• The journey: a place on a scheduled group departure, which is usually more economical, or a private trip, which suits a senior awardee or a couple.
• The season: Ramadan and school holidays cost noticeably more than quieter months.
• The hotels: distance from the Haram and hotel grade make a large difference.
• Who travels: the employee alone, or with a spouse.
• Administration: some providers charge a separate programme fee for handling nominations, scheduling, invoicing and records.
• Extras: an award presentation kit for a ceremony, travel insurance, and any mobility support an employee needs.

Ask any provider for a written proposal that lists each item separately, with payment terms, so you can compare like with like and set a budget per award.

Tax and invoicing notes (general information, dated)

General information about India, as of the date at the top of this page. Tax rules change and every organisation is different, so take these questions to your chartered accountant before you decide.

The one figure we can state

• TCS (tax collected at source) applies to overseas tour packages. Since 1 April 2026, under the Finance Act, 2026, it is a flat 2% of the amount, with no threshold. It is deposited against the PAN of the buyer, and the buyer claims the credit in their income-tax return. Our guide to the TCS line on an Umrah quote explains how the credit works.

Questions to ask your chartered accountant

• For the employee: how will an employer-paid Umrah be treated in the employee's taxable salary, and how should it be reflected in TDS on salary?
• Leave travel: do any travel concessions or exemptions apply to a journey abroad, or not?
• For the company: how is the cost of the award treated in the company's accounts and tax return?
• TCS: if the company buys the package, whose PAN should it be collected against, and how does the company claim it?
• GST: ask the provider for a GST invoice for each award, and ask your CA whether the company can claim input tax credit on it.

Tell the employee in advance how the award will be treated for tax, so there are no surprises.

For employers in the Gulf

Tax, payroll and labour rules differ by country. Check with your own advisers how an Umrah award is treated where you operate.

Scheduling around Ramadan and business calendars

• Ramadan is the most sought-after time for Umrah, and the busiest and most expensive. Ramadan 1448 is expected to begin around 8 February 2027, depending on the moon sighting. If an employee would love to go in Ramadan, plan months ahead.
• The weeks around Hajj are restricted for Umrah travel each year. For example, Saudi Arabia's one-year multiple-entry Umrah visa cannot be used to enter from 1 Dhu al-Qadah to 13 Dhu al-Hijjah. Check the official dates and avoid planning award journeys for that period.
• Quieter months offer better prices, calmer crowds and easier logistics, which can suit older employees.
• Fit your business calendar: year-end, audits and peak seasons. Agree a travel window with the employee's manager early.
• Give enough notice. Allow at least a few weeks for documents, the visa, vaccinations and hotel choice, and more for Ramadan.

Duty of care

When an employer sends an employee abroad, even on a personal journey, it is good practice to take care of the basics:

• Health: encourage the employee to see their doctor before travel. Every Umrah pilgrim needs a meningococcal vaccination at least 10 days before arrival, and pilgrims over 65 or with certain chronic conditions also need proof of COVID-19 vaccination or immunity.
• Insurance: the Umrah visa includes mandatory health insurance for emergencies inside Saudi Arabia, under a policy set by the Council of Health Insurance. Consider travel insurance that covers the whole journey and any declared conditions.
• Support on the ground: a named contact for the employee, and a group leader on group departures.
• Family: the employee's family should know how to reach them and who to call. Share updates with family only with the employee's consent.
• Privacy: handle passports, health information and family details carefully, and only as needed.
• Leave: be clear whether the journey is taken on special leave or annual leave, and how many days.

How a pilot works

A pilot is a low-risk way to try an Umrah award before making it part of your recognition policy.

1. Choose the occasion and the awardees. Many pilots start with one or two awards, for long service or retirement.
2. Agree a travel window with the employee and their manager.
3. Get a written proposal: dates, journey format, what is included, the cost per award and payment terms.
4. Confirm and invoice: a deposit to confirm each award, with the balance before travel, and an invoice per award.
5. Present the award, ideally at a ceremony, and let the provider handle documents with the employee directly.
6. The employee travels, with support throughout.
7. Close the loop: a completion note confirming the journey for your records, and a conversation with the employee about their experience.
8. Decide what next: whether to make Umrah awards part of your recognition policy.

If you would like to run a pilot, our Corporate Umrah awards service works with employers in India and the Gulf, with a GST invoice and a completion note for every award.