Islam in Malaysia: Would income Zakat be paid at all?

The source of remuneration income for an individual Muslim in Malaysia today is expanding and much diversified in terms of employment sectors and positions. Apart from the basic salary, an employee also receives incomes in the form of allowances, bonuses, incentives and others which all point to the imperative of making them Islamic compliant by including them in the individual’s total income zakat calculation . This study analysed the importance of calculating a proper income zakat based on the proliferating income sources. A simulation technique aided by an online zakat calculator was used for calculating the zakat based on selected examples of additional incomes and subtraction of allowable expenses. Results of the simulation demonstrated that the totaling of zakat income encompassing all types of pays and benefits received by an employee did impact on the total payable value of the zakat as well as that of the collecting insitutions. To ensure that varied income zakat is paid at all by a Muslim individual income earner the findings of this study indicated the need for re-evaluating the forms of payable zakat income by the authority and for updating the zakat web information as well as the zakat calculator.