Politics

EPF Withdrawal Without Good Reason Must Pay 2.5% In Zakat

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The payment of zakat to the Employees Provident Fund (EPF) of 2.5 per cent is mandatory on individuals who make EPF withdrawals amounting to RM10,000 as allowed by the government starting 1 April.

Federal Territory Islamic Religious Council Zakat Collection Center (PPZ-MAIWP) Senior Shariah & International Unit Manager Ahmad Husni Abd Rahman said payment under the property zakat is applicable for individuals who make withdrawals willingly without any financial burden and problems.

He was quoted by Berita AlHijrah as saying that individuals who do not face any problems in terms of financial burden, debt, economy and the like, is obliged to pay zakat from the EPF withdrawals that have been made.

The payment of zakat is not mandatory for individuals who make the withdrawal of money due to the urgent need for income sources.

PPZ-MAIWP Senior Shariah & International Unit Manager Ahmad Husni Abd Rahman on the zakat criteria.

If the individual made a withdrawal due to economic pressure and the like, then such withdrawal is not subject to zakat.

Among the exemptions are:

  • Individuals who face income problems and need the money to continue living.
  • Those who still have debts that need to be settled immediately.
  • Withdrawals used for basic or important needs such as medicine, education, and the like.

The imposition of zakat is expected to deter the public from spending on items which are unnecessary.

A recent discussion in social media on how to spend the EPF withdrawal on drones. (Source: Facebook)

Lifeline For The Rakyat

The decision to allow EPF contributors to make the special withdrawal was recently announced.

The goal is to ease the burden of Malaysian families who are still affected by the Covid-19 pandemic.

Prime Minister Datuk Seri Ismail Sabri Yaakob said the decision was made based on the results of a comprehensive study and research among the people who are still economically affected, losing income and are rebuilding their lives.

READ MORE: Govt To Allow A Special RM10,000 EPF Withdrawal

Applications will be open to members under the age of 55 starting 1 April, 2022 and ending on 30 April, 2022.

The payment period will start on 20 April, 2022.


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