Fatwa's Insights - Worship

THE 32ND & 33RD MEETING OF THE PERLIS STATE FATWA COMMITTEE / 2017

20 - 21 OCTOBER 2017 / 29 MUHARRAM- 1 SAFAR 1439H

ZAKAT ON EMPLOYEES PROVIDENT FUND (EPF/KWSP) SAVINGS

EPF (KWSP) funds, once withdrawn by the contributor, become subject to zakat once a full haul (lunar year) has elapsed. The rate of zakat payable is 2.5% of the amount held as at the end of the haul period, provided the remaining balance reaches the nisab (minimum threshold).

Advance payment of zakat prior to the completion of the haul is permissible. However, the rate of payment shall be based on the final balance as at the completion of the haul.

EPF (KWSP) funds may be distributed in accordance with the Islamic law of inheritance (faraid) once matters relating to the deceased's funeral, debts, and bequest (wasiat) have been settled.

Endorsed at the Meeting of the Perlis Islamic Religious and Malay Customs Council, No. 7/2017, held on 6 November 2017, corresponding to 17 Safar 1439H.