EPF introduces automatic zakat deduction for Simpanan Shariah members

The Employees Provident Fund (EPF) has introduced Simpanan Shariah Business Zakat, a new facility that makes it easier for Muslim members to pay zakat on their Simpanan Shariah savings. Instead of working out and paying the zakat on their own, members who opt in will have it deducted automatically from their annual Simpanan Shariah dividend.

Once the annual dividend is declared, EPF will deduct the zakat amount from your Simpanan Shariah dividend, and then pay it on your behalf to the state zakat authority based on the state you work in. In this arrangement, EPF acts as your agent, or wakil, for the payment. It’s worth noting that the facility is entirely optional.

For the zakat calculation, EPF will first calculate the total zakat collectively for each financial year ending 31 December using the adjusted working capital method at a rate of 2.577%. This total is then divided among Muslim members on a pro-rata basis using a Member Zakat Rate, which is based on the total annual Simpanan Shariah dividend paid out. In other words, how much you pay depends on the size of your Simpanan Shariah dividend.

EPF CEO Ahmad Zulqarnain Onn said the facility is meant to make it simpler for members to fulfil their zakat obligations without having to deal with the process themselves.

“For members who choose to participate, EPF takes care of the assessment and payment process under the facility, providing greater clarity and convenience while allowing members to remain focused on building their savings for retirement.” – Ahmad Zulqarnain Onn, Chief Executive Officer of EPF.

If you’d like to sign up, you can opt in to Simpanan Shariah Business Zakat through KWSP i-Akaun (Member), at a Self-Service Terminal (SST) or at any EPF office nationwide. More details are also available in the FAQs on the EPF website.

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