EPF launches direct zakat deduction facility for Simpanan Shariah members

PETALING JAYA, 13 OCTOBER 2026 —

PETALING JAYA: The Employees Provident Fund (EPF) has launched a new facility allowing Muslim members to have their annual zakat payments deducted directly from their Simpanan Shariah dividends, streamlining the process for fulfilling religious obligations on retirement savings.

This development underscores the EPF’s ongoing commitment to strengthening the Simpanan Shariah proposition through solutions that are responsive to member needs and underpinned by robust Shariah governance.

According to a statement released by the EPF, Muslim members holding Simpanan Shariah accounts may opt into the facility, which permits their annual zakat payments to be deducted directly from their Simpanan Shariah dividends following the annual dividend declaration. The EPF will act as an agent in this process, responsible for remitting the calculated payments to the relevant state zakat authorities.

The specific authority to which payments are remitted is determined by the state in which the member works, ensuring that contributions align with local regulatory requirements.

The EPF clarified that participation in the facility is voluntary. Muslim members who choose not to opt in may continue to fulfill their zakat obligations individually through existing channels. Additionally, the fund noted that non-Muslim members are not subject to zakat and are therefore not included in this specific facility. This distinction ensures that the service remains targeted at the demographic for whom the religious obligation applies, maintaining the integrity of the Shariah-compliant framework.

In terms of calculation methodology, the EPF stated that zakat will first be calculated collectively, a process known as khultah, for each financial year ending December 31. The fund utilizes the adjusted working capital method to determine the zakat base for Simpanan Shariah. The applicable zakat rate for these calculations is set at 2.577 per cent.

This standardized approach ensures consistency in how zakat liabilities are assessed across the member base, providing a clear and transparent framework for both the fund and its participants.

EPF Chief Executive Officer Ahmad Zulqarnain Onn highlighted the strategic importance of the new facility, describing it as a key enhancement to the Simpanan Shariah product. He emphasized that the facility offers members a more seamless way to fulfill 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," Onn said. He further added, "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."

The launch of this facility is part of the EPF’s broader strategy to modernize its services and improve the user experience for its diverse membership base. By automating the zakat deduction process, the EPF reduces the likelihood of errors or delays associated with manual payments, thereby enhancing the overall efficiency of the Simpanan Shariah product.

The integration of religious compliance into the core financial operations of the fund demonstrates a tailored approach to serving Muslim members, who constitute a significant portion of the EPF’s clientele.

Members wishing to enroll in the Simpanan Shariah Business Zakat facility have several channels available to them. The EPF stated that Muslim members can opt in through the KWSP i-Akaun (member) platform, self-service terminals, or by visiting EPF offices nationwide. This multi-channel approach ensures accessibility for members regardless of their preferred mode of interaction with the fund.

The availability of digital options via KWSP i-Akaun aligns with the EPF’s digital transformation initiatives, while the physical presence of self-service terminals and offices provides support for those who prefer in-person assistance or require guidance during the enrollment process.

The implementation of this facility is expected to simplify the financial management of retirement savings for Muslim members, allowing them to focus on long-term wealth accumulation without the administrative burden of separate zakat calculations and payments. By acting as an agent for remittance, the EPF assumes responsibility for the logistical aspects of zakat distribution, ensuring that funds are directed to the appropriate state authorities promptly and accurately.

This operational efficiency is a key component of the value proposition offered to members, reinforcing the EPF’s role as a trusted custodian of retirement savings.

The new facility also highlights the EPF’s attention to detail in adhering to Shariah principles, particularly in the collective calculation method and the specific rate applied. The use of the adjusted working capital method and the 2.577 per cent rate reflects a rigorous approach to determining the zakat base, ensuring that the deductions are both fair and compliant with Islamic jurisprudence.

This level of precision is critical for maintaining the trust of members who rely on the EPF to manage their savings in accordance with their religious beliefs.

As the EPF rolls out this facility, it is positioned to further differentiate its Simpanan Shariah product in the competitive landscape of retirement savings options. The convenience and clarity provided by the automatic deduction process are likely to encourage higher participation rates among eligible members, potentially increasing the overall uptake of the Simpanan Shariah product.

The EPF’s proactive approach to addressing member needs through innovative service delivery sets a precedent for other financial institutions seeking to serve the Muslim market effectively.

The launch of the Simpanan Shariah Business Zakat facility marks a significant step forward in the EPF’s service offerings, combining financial efficiency with religious compliance. By providing a straightforward mechanism for zakat payment, the EPF enhances the value of its Shariah-compliant savings product, ensuring that members can meet their religious obligations without compromising on the convenience and security of their retirement planning.

This initiative is a testament to the EPF’s dedication to serving its members with products that are both financially sound and spiritually aligned.

Related: Employees Provident Fund (EPF) · EPF offices · Ahmad Zulqarnain Onn · Petaling Jaya