Hanoi:The Employees Provident Fund (EPF) has introduced a new facility called Simpanan Shariah Business Zakat. This initiative enables Muslim members to conveniently fulfill their zakat obligations on their Simpanan Shariah savings.

According to BERNAMA News Agency, Muslim members with Simpanan Shariah can opt into the facility, which allows annual zakat payments to be deducted directly from their Simpanan Shariah dividends following the annual dividend declaration. EPF will act as an agent to remit these payments to the relevant state zakat authorities, based on the state where members work.

For Muslim members who do not opt into the facility, they may continue to fulfill their zakat obligations individually. Non-Muslim members are not subject to zakat. The zakat for Simpanan Shariah will be calculated collectively (khultah) for each financial year ending December 31, using the adjusted working capital method to determine the zakat base. The applicable zakat rate is 2.577 percent.

EPF chief executive officer Ahmad Zulqarnain Onn stated that the facility represents an important enhancement to Simpanan Shariah by offering a seamless way for members to fulfill their zakat obligations on their retirement savings. For participants, EPF will handle the assessment and payment process, providing clarity and convenience while allowing members to focus on building their retirement savings.

EPF emphasized its commitment to strengthening the Simpanan Shariah proposition through solutions that adhere to strong Shariah governance and meet the needs of its members. Muslim members wishing to opt into the facility can do so via KWSP i-Akaun (member), self-service terminals, or EPF offices nationwide.