EPF introduces Simpanan Shariah Business Zakat, allowing Muslim members to pay annual zakat directly from their Simpanan Shariah dividends at a 2.577% rate
KUALA LUMPUR: The Employees Provident Fund (EPF) today introduced Simpanan Shariah Business Zakat, a new facility that enables Muslim members to fulfil their zakat obligations on their Simpanan Shariah savings conveniently.
In a statement, EPF said Muslim members with Simpanan Shariah may opt into the facility, which allows their annual zakat payments to be deducted directly from their Simpanan Shariah dividends after the annual dividend declaration.
EPF will act as an agent to remit the payments to the relevant state zakat authorities, based on the state where members work.
Muslim members who do not opt into the facility may continue to fulfil their zakat obligations individually, while non-Muslim members are not subject to zakat, it said.
EPF said the zakat would first be calculated collectively (khultah) for each financial year ending Dec 31, using the adjusted working capital method to determine the zakat base for Simpanan Shariah. The applicable zakat rate is 2.577 per cent.
Meanwhile, EPF chief executive officer Ahmad Zulqarnain Onn said the facility marked an important enhancement to Simpanan Shariah by offering members a more seamless way to fulfil their zakat obligations on their retirement savings.
“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.
“More importantly, this facility reflects our commitment to continuously strengthen the Simpanan Shariah proposition through solutions that are underpinned by strong Shariah governance and responsive to the needs of our members,” he added.
EPF said Muslim members wishing to opt into the facility could do so through KWSP i-Akaun (member), self-service terminals or EPF offices nationwide.