Selangor Journal

Don’t forget to pay zakat on KWSP

BY: LIZAWATI MADFA
SHAH ALAM, NOV 25: It is mandatory for contributors of Kumpulan Wang Simpanan Pekerja (KWSP) or Employees Provident Fund to pay zakat immediately upon receiving or withdrawing their money without waiting out a one year period.
Selangor Zakat Board (LZS) Director for Zakat KWSP, Kamarul Hisham Mohamad Soe said this is according to the 2013 Selangor Zakat Collection Management System Fatwa on Zakat KWSP.
He said that KWSP money is similar to savings, except that it cannot be withdrawn unless for specific reasons such as reaching retirement age or paying for housing deposits.
“However, if the contributor has reached 55 years of age, he is no longer bound by the complete ownership condition above and the conditions would now be based on zakat for savings (within one year),” he said.
Nisab for this year is RM13,536. Hence, if the balance in a KWSP account exceeds that amount, zakat then becomes mandatory.
The formula to calculate Zakat on KWSP is: Total amount withdrawn multiplied by 2.5%.
For example, if the KWSP balance this year is RM40,000 (exceeds the nisab) and the amount withdrawn is RM14,000.
bayaran-zakat
Therefore, RM14,000 (more that nisab amount) has become completely owned by the individual, and as such he needs to allocate a 2.5% (zakat rate) out of the amount for zakat, which is RM350.
Kamarul said that zakat is not mandatory if the KWSP money is still in the account and not withdrawn, as it is not yet considered as ‘milik sempurna’ which is one of the conditions for zakat.
“As for deposit payment for housing, if the money received and handed-over for the purchase is RM20,000, then zakat is mandatory.
“The amount is RM20,000 multiplied by 2.5%. So the zakat amount to be paid is RM500,” he said.
In conjunction with the Kempen Zakat Di Hati 2016 mega programme, the public will have the opportunity to participate in the Zakat KWSP campaign starting November 15 until December 15.
It is held via a ‘turun padang’ operation via Zakat Mobile Counters (ZOW), and LZS employees are involved in all KWSP branches in Selangor.
On November 21, 2016 in KWSP Kuala Selangor; November 22 (KWSP Kajang), November 24 (KWSP Klang), November 29 (KWSP Petaling Jaya), December 1 (KWSP Shah Alam) dan December 7 (KWSP Puchong).

Top Picks

Landslide: Selangor Sultan, Tengku Permaisuri offer condolences to victim’s families

Editor Selangor Journal

Experts tell parents to worry about effects of Covid-19, not vaccine, on their children

Editor Selangor Journal

Taman Templer community, teens to get 500 vaccine doses this Sunday

Editor Selangor Journal