PETALING JAYA: Muslim Employees Provident Fund (EPF) members can now opt to have their annual zakat payments deducted directly from their Simpanan Shariah dividends under a new facility.
The EPF, in a statement on Monday (Oct 12) said that the Simpanan Shariah Business Zakat facility would simplify the process of fulfilling zakat obligations on retirement savings, with the fund handling both the calculation and payment on behalf of participating members.
Under the voluntary facility, zakat will be deducted from members' annual dividends after they are declared, with EPF acting as an agent to remit the payments to the relevant state zakat authorities based on members' workplace locations.
Members who choose not to participate can continue paying their zakat individually, while non-Muslim members are not subject to zakat.
EPF said the initiative followed a resolution by the 125th National Council for Islamic Religious Affairs Malaysia (MKI) Muzakarah Committee Meeting, which determined that Simpanan Shariah savings were subject to annual business zakat obligations.
Under the facility, zakat will first be calculated collectively using the adjusted working capital method at a rate of 2.577% for each financial year ending Dec 31.
The total obligation will then be apportioned among Muslim members on a pro rata basis, with individual deductions determined using a Member Zakat Rate based on the annual Simpanan Shariah dividend distribution.
EPF chief executive officer Ahmad Zulqarnain Onn said the facility would provide members with a more convenient way to fulfil their religious obligations without having to calculate and arrange payments 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," he said.
He said the initiative also reflected EPF's commitment to strengthening Simpanan Shariah through solutions supported by sound Shariah governance.
EPF said savings already eligible for withdrawal, including those in Akaun Fleksibel, would not require separate zakat payments by members participating in the facility, as these would be covered under the collective zakat assessment.
Eligible members can opt in through KWSP i-Akaun (Member), self-service terminals or EPF offices nationwide.
Further information is available on the EPF website.
