EPF introduces Simpanan Shariah Business Zakat facility
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 ...
Source: The Star · October 13, 2026 at 11:32 AM · AI-assisted report
Single-sourceKUALA LUMPUR, 13 OCTOBER 2026 —
KUALA LUMPUR, 12 Oct 2026 – The Employees Provident Fund (EPF) launched Simpanan Shariah Business Zakat today, a facility that lets Muslim members deduct their zakat obligations directly from the dividends of their Simpanan Shariah savings.
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The new scheme allows members who opt in to have their annual zakat calculated and paid automatically after EPF declares its yearly dividend, with EPF acting as the intermediary to remit the funds to the state zakat authorities corresponding to the members’ place of work.
Under the facility, zakat will be computed on a collective (khultah) basis for each financial year ending 31 December, using the adjusted working capital method to determine the zakat base for Simpanan Shariah. The rate applied is 2.577 per cent. Members who choose not to participate may continue to settle their zakat individually, while non‑Muslim members are not subject to zakat under the scheme.
EPF chief executive officer Ahmad Zulqarnain Onn said the initiative represents “an important enhancement to Simpanan Shariah by offering members a more seamless way to fulfil their zakat obligations on their retirement savings.” He added that the fund “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.” Zulqarnain Onn also noted that the 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.”
Members wishing to join the Simpanan Shariah Business Zakat can enrol through the KWSP i‑Akaun portal, self‑service terminals or any EPF office nationwide, according to the EPF statement. The agency will then deduct the zakat amount from the dividend payout and forward it to the relevant state zakat authority, ensuring that the contribution reaches the appropriate charitable channel.
The EPF announcement, reported by Bernama and KLSE Screener, underscores the fund’s effort to integrate religious obligations with retirement planning. By automating the zakat deduction, EPF aims to simplify compliance for Muslim savers and enhance the overall appeal of its Shariah‑compliant savings product, Simpanan Shariah.
The rollout comes as EPF continues to expand its Shariah‑aligned offerings, positioning Simpanan Shariah as a core component of its portfolio for Muslim contributors. The agency’s role as a zakat collection agent adds a new dimension to its service suite, potentially increasing participation rates among members who previously found zakat calculation and payment cumbersome.
The facility’s implementation follows the annual dividend declaration, meaning that the exact zakat amount will be known only after EPF announces the dividend for the year. Once the dividend is declared, the 2.577 per cent zakat rate will be applied to the collective adjusted working capital base, and the corresponding deduction will be reflected in members’ dividend statements.
By handling both assessment and remittance, EPF eliminates the need for members to calculate zakat independently, thereby reducing administrative burden and ensuring that contributions are made in accordance with state‑level zakat regulations. The agency’s involvement also provides an audit trail, enhancing transparency for both contributors and the receiving zakat bodies.
The introduction of Simpanan Shariah Business Zakat marks the latest step in EPF’s broader strategy to align its retirement savings products with the religious and financial expectations of its diverse membership base.
Related: EPF · EPF · Ahmad Zulqarnain Onn · Kuala Lumpur