Calculate & Pay
Zakat On EPF

Calculate & Pay
Zakat On EPF

Pay Zakat On EPF

Here is the amount of RM……. as I pay Zakat on EPF which is obligatory on myself /the party I represent for the year ………… in the name of Allah SWT

Zakat KWSP

Jumlah Minima: RM10

RM

Jumlah Minima:RM10

Jumlah Maksima:RM30,000

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Zakat On EPF Selangor

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100% LHDN Tax Rebate

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Benefits of
Paying Zakat

100% Income
Tax Rebate

Zakat payers will receive 100% tax rebates from the Inland Revenue Board of Malaysia (LHDN)

2.5% Business
Tax Rebate

Company will receive a 2.5% tax rebate from the Inland Revenue Board (LHDN).

Directly To Selangor
Zakat Board

Your zakat payment will go directly to the bank account of the Selangor Zakat Board, without passing through any other entity's account

Zakat Distributed
To Asnaf

The collection of Zakat proceeds is directly channeled to the Asnaf groups in Selangor through the Selangor Zakat Board

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Benefits of Paying Zakat

100% Individual
Tax Rebate

Zakat payers will receive 100% tax rebate from the Inland Revenue Board of Malaysia (LHDN)

2.5% Business Tax Rebate

Company will receive a 2.5% tax rebate from the Inland Revenue Board (LHDN).

Directly To Selangor Zakat Board

Your zakat payment will go directly to the bank account of the Selangor Zakat Board, without passing through any other entity's account

Zakat Distributed To Asnaf

The collection of Zakat proceeds is directly channeled to Asnaf groups in Selangor through the Selangor Zakat Board

Choose & Calculate

Zakat On Income
100% Tax Rebate
Zakat Fitrah
100% Tax Rebate
Zakat On EPF
100% Tax Rebate
Zakat On Gold
100% Tax Rebate
Zakat On Investments
100% Tax Rebate
Zakat On Livestock
2.5% Tax Rebate
Zakat On Business
2.5% Tax Rebate
Zakat On ASB
100% Tax Rebate
Zakat On Gold Jewelry
100% Tax Rebate
Zakat On Stocks
100% Tax Rebate
Zakat On Crops
2.5% Tax Rebate
Qadha of Zakat
100% Tax Rebate
Zakat On Savings
100% Tax Rebate
Zakat On Assets
100% Tax Rebate
Zakat On Gratuity
100% Tax Rebate
Zakat On Takaful
100% Tax Rebate
Zakat On Paddy
2.5% Tax Rebate
Qadha Zakat Fitrah
100% Tax Rebate

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What Is Zakat On EPF Zakat And When Should It Be Paid?

Money that is deposited monthly into the Employee’s Provident Fund (EPF – or KWSP, for Kumpulan Wang Simpanan Pekerja) is part of an employee’s income that is kept in an employee savings account. Withdrawal of funds from the account is subject to the EPF act, even though all the money in the account is yours. Thus, the Withdrawal Scheme introduced by the EPF is subject to Property Zakat which should be paid by the contributor after the funds are withdrawn.

It is important to note that unlike investments, money that is still in the savings period is not counted as zakat, because it is not yet fully owned by the account owner. Once the money is released it means that it has reached the condition where it has become the full property of the contributor. Since the concept is the same as savings, EPF withdrawals are also subject to zakat.

Fatwa on Zakat on EPF

The 74th Fatwa Committee Meeting of the National Council for Malaysian Islamic Religious Affairs convened in July 2006 and decided that:

According to the mahzhab of Imam Syafie, zakat on property must be paid when the nisab and haul period are sufficient. EPF money is a savings property, so zakat must be paid when it is issued/released and both conditions are met.

Scholars are of the opinion that zakat on property can be issued earlier if the condition of the property is sufficient for its nisab. Accordingly, the muzakarah (discussion or dialogue by a group of Islamic scholars) decided that the Decision of the National Fatwa Committee in November 1982 be amended as follows: Contributors are encouraged to pay zakat immediately after withdrawing EPF money if they have sufficient nisab without waiting for a year’s haul.

Types & Calculation of Zakat on EPF

How to calculate Zakat on EPF depends on two situations:

A) Before reaching the age of 55 (ownership is not complete):-
2.5% of the total withdrawal of EPF money is required as zakat. If the amount of withdrawal is below nisab, it should be added to other income.

Example:
Let’s take the amount of nisab for the year 2023, which is RM23,035.  Mr. Ali, who is, 35 years old, withdraws EPF money of RM10,000 from the i-Sinar Scheme**. Even though this amount is less than the nisab amount, and it hasn’t been a full year since it was taken out, zakat still needs to be paid on the withdrawal according to the decision made by the Fatwa Committee meeting.  

Thus, the amount of zakat to be paid would be calculated this way: RM10,000 X 2.5% = RM250.00

**According to the types of withdrawals that are required to pay zakat such as the i-Lestari Scheme, Education Withdrawal Scheme etc.

B) After reaching the age of 55 (perfect ownership):-
When someone reaches retirement age – either 50, 55, or 60, or in between, they can withdraw all of their EPF money, or withdraw their money bit by bit, as if from a savings account. However, no matter the method of withdrawal, or the amount,  2.5% on the entire EPF money in the individual account is subject to zakat similar to zakat on savings, as there is no more deduction of EPF contributions on income. 

Thus, zakat on EPF should be paid on the savings every year, at the rate of 2.5% out of the entire savings amount. By this time, EPF savings should be treated as normal savings and zakat paid as such. 

Performing Your Zakat On EPF Obligations

In conclusion, paying zakat on EPF is a responsibility that needs to be taken into account by every individual who has savings in EPF. Zakat on EPF is charged on EPF savings that have reached certain nisab and age requirements, and certain withdrawals such as cash withdrawals of RM10,000 before. Zakat on EPF calculations can be made using formulas and predetermined rates, and zakat on EPF payments can be made on Bayar Zakat Malaysia.

No matter how much EPF savings we have, we need to always remember that zakat on EPF is a form of gratitude towards Allah and shows our responsibility as a Muslim who has faith and piety. So, let’s make EPF zakat a priority and remember to fulfill this responsibility wholeheartedly. 

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