Utama – Zakat Malaysia

EPF Zakat

EPF Zakat

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EPF Zakat Nisab

EPF Zakat Calculation

Intention for EPF Zakat

“Inilah wang sebanyak RM…………. sebagai menunaikan Zakat KWSP yang wajib ke atas
diri saya / pihak yang saya wakil untuk tahun…………. kerana Allah Ta’ala.”

Explanation

Is It Necessary to Pay Zakat on EPF?

EPF (Employees Provident Fund) is part of an employee's income stored in the employee's savings account, regulated under the EPF Act. The Withdrawal Scheme introduced by EPF is subject to Wealth Zakat, which should be fulfilled by the contributor once the wealth is withdrawn.

Funds that are still within the saving period are not subject to zakat, as they have not yet met the necessary conditions; that is, they are not yet fully owned.

When should EPF zakat be paid? Once the funds are withdrawn, it means they have met the conditions and are fully owned by the contributor. Since it operates similarly to savings, EPF is also subject to zakat.

Fatwa on the Obligation to Pay EPF Zakat

The 74th Meeting of the National Fatwa Committee for Islamic Religious Affairs Malaysia was held in July 2006 and concluded that:

According to the Shafi'i school of thought, zakat on wealth is obligatory once it meets the nisab and haul (one-year holding period). EPF funds are considered as savings wealth, so zakat is obligatory once it is withdrawn, fulfilling both conditions.

Scholars agree that wealth zakat can be paid earlier if the wealth meets its nisab requirement. Therefore, the committee decided, based on the National Fatwa Committee's ruling in November 1982, as follows:

Contributors are encouraged to pay zakat as soon as they withdraw EPF funds if they meet the nisab without waiting for the one-year holding period.

Types & Calculation of EPF Zakat

The method of calculating EPF Zakat depends on two situations:

Before reaching the age of 55 (ownership is not yet complete)

2.5% of the EPF withdrawal amount is subject to zakat. If the withdrawal amount is below the nisab, it should be combined with other income.

Example:

• Nisab for 2024: RM24,007.00
• Mr. Ali (35 years old) withdraws RM10,000 from the i-Sinar Scheme**
• Jumlah zakat yang dikenakan: RM10,000 X 2.5% = RM250.00

**Based on types of withdrawals that are subject to zakat, such as the i-Lestari Scheme, Education Withdrawal Scheme, etc.

After reaching the age of 55 (complete ownership)

2.5% of the entire EPF amount is subject to zakat, similar to the zakat on savings method, and no further deductions for EPF contributions are applied to the income assessment for those still working.

Example:

• Nisab for 2024: RM24,007.00
• Mr. Ahmad (55 years old) has EPF funds amounting to RM100k.
• Zakat amount required: RM100,000 X 2.5% = RM2,500.00

Calculate & Pay Zakat

Income Zakat



Business Zakat



Savings Zakat



Investment Zakat



Gold Zakat



Silver Zakat



EPF Zakat



Takaful Zakat



Paddy Zakat



Crypto Zakat



Qadha Zakat



Fitrah Zakat

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