KUALA LUMPUR: The Employees Provident Fund (EPF) has introduced Simpanan Shariah Business Zakat, a facility enabling Muslim members to automatically deduct zakat from their retirement savings.
In a statement, EPF said Muslim members with Simpanan Shariah accounts may opt into the facility, which allows annual zakat payments to be deducted directly from their dividends after the annual dividend declaration.
EPF will act as an agent to remit payments to relevant state zakat authorities based on where members work.
Muslim members who do not opt into the facility may continue to fulfill their zakat obligations individually, while non-Muslim members are not subject to zakat, it said.
EPF said zakat would first be calculated collectively for each financial year ending Dec 31 using the adjusted working capital method to determine the zakat base for Simpanan Shariah, at a rate of 2.577 per cent.
EPF chief executive officer Ahmad Zulqarnain Onn said the facility marks an important enhancement to Simpanan Shariah by offering a more seamless way for members to fulfill zakat obligations on their 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 said.
EPF said Muslim members wishing to opt into the facility can do so through KWSP i-Akaun, self-service terminals or EPF offices nationwide. - BERNAMA
© New Straits Times Press (M) Bhd