Zakat Pendapatan Calculator: How to Calculate Zakat for Income in Malaysia

For many working Muslims in Malaysia, zakat is a way to give back to the community and support those in need.

But when it comes to income zakat, many are still unsure how to calculate it or when to pay it.

This article explains everything employers need to know about who needs to pay zakat, how to calculate it, and how we can help make the process easier for our employees.

What is Zakat on Income?

Zakat on income, or zakat pendapatan, is a type of wealth zakat paid by Muslims who earn money through work, business, or services.

This includes regular salaries, freelance income, bonuses, commissions, and rental income.

Zakat is one of the five pillars of Islam, aimed at purifying wealth and helping those in need.

In Malaysia, income zakat is regulated by state religious councils, and the rules, especially the nisab threshold (minimum income to pay zakat), may vary between states.

Who is Obligated to Pay Zakat on Income?

Not every Muslim is automatically required to pay zakat on income. The obligation depends on a few important conditions.

It’s helpful to understand these so we can guide our staff better.

First, the person must be a Muslim. Zakat is a religious duty specific to Islam, so it only applies to Muslim employees.

Next, the individual must have a stable source of income. This includes those working full-time, part-time, or freelance.

Business owners who earn regular profits also fall under this group. As long as the income is consistent and not a one-off, it should be reviewed for zakat eligibility.

But the most important factor is the nisab threshold. This is the minimum income someone must earn in a year to be required to pay zakat.

Each state in Malaysia sets its own nisab value, usually based on the price of gold. For example:

In Johor, the nisab for 2023 is RM24,424.54.
In Sabah, it is RM21,500.00.
In Pulau Pinang, it is RM15,885.00.

If a Muslim employee’s annual income exceeds the nisab amount set by their state, they are obligated to pay zakat.

The types of income that should be considered include salaries, commissions, bonuses, freelance income, and business revenue.

It also includes other earnings from rental, professional services, or profits from projects.

We can help by sharing the nisab information each year and guiding employees on checking their eligibility, especially new hires or those with growing income.

Gross vs. Net Income: How is Zakat on Income Calculated?

Income zakat can be calculated using either the gross or net income method.

Gross method is simpler. You take the total income for the year and calculate 2.5% of that.

Net method involves deducting certain expenses before calculating zakat. These can include:

EPF contributions
Support for spouse, children, and parents
Personal expenses
Education fees
Self-contributions like Tabung Haji

Once deductions are made, 2.5% of the remaining balance becomes the zakat amount.

For example:

Annual income: RM48,000
Allowed deductions: RM32,480
Zakatable income: RM15,520
Zakat to be paid: RM388
After deducting contributions: RM358 total, or around RM29.90 per month

This is where the calculator zakat pendapatan becomes useful. It helps employees estimate their zakat easily without manual calculations.

How to Calculate Zakat on Salary in Malaysia?

Zakat on salary can be calculated in two main ways, monthly or annually, depending on the employee’s preference or financial planning style.

Some employees prefer to calculate zakat on a monthly salary basis, where 2.5% is deducted each month from their income.

This helps break down the obligation into smaller, manageable payments across the year.

Others may choose to calculate zakat based on their total annual income, especially those who receive large bonuses or project-based payments at certain times of the year.

Here’s a simplified example using the net income method (after deductions):

Let’s say an employee earns RM48,000 a year. They deduct allowable expenses like personal spending, EPF contributions, spouse and children support, and education costs. The total deductions come to RM32,480. This leaves them with RM15,520 of zakat-eligible income.

2.5% of RM15,520 is RM388. This is the yearly zakat amount. If paid monthly, it would be around RM29.90 per month.

Some employees may also prefer the gross income method, which is more straightforward. Using the same income of RM48,000:

RM48,000 x 2.5% = RM1,200 yearly zakat.

To help with accuracy, each state religious council in Malaysia provides an online zakat calculator.

These tools let employees input their salary, deductions, and other details to get a more precise figure.

For example, platforms like zakat2u.com.my or official state zakat websites make it easier for anyone to check their exact amount.

When Should Zakat on Income Be Paid?

Zakat on income can be paid monthly or yearly. Many employees choose monthly deductions from their salary to make it easier and consistent.

Yearly zakat must be paid by 31 December to qualify for income tax rebate.

We can make this process smoother by offering monthly zakat deduction options, similar to how we deduct PCB (Monthly Tax Deduction).

Eligibility Criteria for Zakat on Income

Not everyone is required to pay zakat on income. As an employer, it’s useful to understand who is obligated, so you can support your team with the right information.

Here are the key criteria:

1. Muslims Only

Zakat is a religious obligation for Muslims. Non-Muslims are not required to pay zakat.

2. Income Must Exceed the Nisab (Minimum Threshold)

The nisab is the minimum income required before zakat becomes wajib (compulsory).

It is based on the value of 85 grams of gold. If a person's annual income is below the nisab, they are not required to pay zakat for that year.

3. Nisab Value Changes Every Year

The nisab is not fixed. It changes depending on the gold price and is set by each state’s zakat office.

For example, the nisab in 2023 ranged between RM21,500 and RM24,500, depending on the state.

4. Stable and Fully Owned Income

Only income that is fully owned and has the potential to grow is subject to zakat.

This includes salaries, commissions, business income, bonuses, and freelance earnings.

If the income is tied to public property (like waqf) or shared ownership, zakat is not required.

5. Meets the Haul Period

Haul means the income has been owned for one full lunar or solar year. If the income hasn’t reached this period, zakat may not be applicable yet.

Zakat Rate on Salary: How Much Should You Pay?

The standard zakat rate on salary is 2.5% of a person’s eligible income.

This rate follows Islamic principles and is widely practiced across all states.

Whether the employee is in Johor, Selangor, or Sabah, the rate stays the same. Only the nisab threshold may vary depending on the state’s religious authority.

However, there are several factors that can affect how zakat is calculated:

Gross vs Net Income Method

Some employees choose to pay zakat based on their full (gross) income. Meannwhile, others calculate it after deducting allowable expenses like EPF contributions, children’s education, or parental support. These two methods will produce different zakat amounts.

Additional Deductions

Contributions to institutions like Tabung Haji may also reduce the zakat amount, if those institutions are recognised as paying zakat on behalf of contributors.

Income Variability

For freelancers or commission-based workers, income may fluctuate month to month. This makes it more practical to calculate zakat based on annual income rather than monthly salary.

How to Pay Zakat on Income?

There are several easy ways to pay zakat on income:

Online payment via state zakat websites like zakat2u.com.my
Online banking through selected banks
Mobile apps (like Zakat Selangor, Zakat Penang, or KWSP i-Akaun)
Salary deductions, where employees authorize the deduction monthly

Employers can support by:

Providing the Monthly Zakat Deduction (PZB) option
Helping employees fill in authorization forms
Adjusting PCB to reflect zakat deductions

For example, if an employee's PCB is RM100 and their monthly zakat is RM70, we only deduct RM30 as PCB after offsetting zakat.

Where to Pay Zakat on Income in Malaysia?

Zakat should ideally be paid in the state where the income is earned.

This is because the funds will be used to help those in need within that local community, such as the poor, asnaf groups, and other eligible recipients.

Each state in Malaysia has its own official zakat collection body.

These institutions are responsible for managing zakat contributions, offering calculators, and providing clear guidance on zakat obligations.

Here are some of the state zakat authorities you should be familiar with:

Lembaga Zakat Selangor (LZS)
Pusat Pungutan Zakat Wilayah Persekutuan (PPZ-MAIWP)
Zakat Pulau Pinang (ZPP)
Lembaga Zakat Negeri Kedah
Majlis Agama Islam Johor (MAIJ)
Majlis Ugama Islam dan Adat Resam Melayu Pahang (MUIP)
Majlis Agama Islam Melaka (MAIM)
Majlis Agama Islam Kelantan (MAIK)
Majlis Islam Sarawak
Majlis Ugama Islam Sabah (MUIS)

These bodies also offer online platforms and payment gateways. Employees can pay zakat via:

Official zakat websites
Internet banking portals of most local banks
Mobile apps developed by state zakat agencies
ATM machines or selected bank branches
Salary deduction schemes (PZB) handled by HR or payroll teams

FAQ

What happens if I don’t pay zakat on income?

Zakat is a religious obligation. Not paying it means failing to fulfill one of Islam’s pillars. It also affects tax rebates and may impact blessings in earnings, as many believe.

Can I pay zakat monthly instead of yearly?

Yes. Monthly payments are encouraged to spread the cost and make it manageable.

What is the difference between zakat on income and zakat on savings?

Income zakat is based on salary and wages, while savings zakat is based on money kept in savings accounts for more than a year.

Can zakat on income be deducted from income tax?

Yes. Zakat payments are deductible from annual income tax, if paid through official channels.

Where can I check the nisab value for the current year?

Visit the website of your state zakat council for the latest nisab value.

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