Zakat Pendapatan Malaysia: Salary Deduction & Payroll Process for Employers

Zakat pendapatan (income zakat) is a religious obligation for Muslim employees in Malaysia whose income meets the nisab threshold.

As an employer or HR manager, you may receive requests from Muslim employees to deduct zakat directly from their monthly salary.

This guide explains how to correctly process zakat salary deductions, employer responsibilities under Malaysian law, how to align zakat deductions with PCB (Monthly Tax Deduction), and the list of official zakat centres by state.

What Is Zakat Salary Deduction?

Zakat salary deduction is a mechanism where an employer deducts an employee’s income zakat amount from their monthly salary, upon the employee’s request and remits it directly to the relevant state zakat authority.

This system is commonly known as the Zakat Salary Deduction Scheme or e-Zakat, allowing zakat payments to be made automatically every month without the employee needing to visit a zakat counter.

For a full explanation on eligibility and tax rebates, read our guide on Zakat Pendapatan Malaysia.

Important: Zakat salary deduction is made at the employee’s request, it is not a legal obligation imposed on employers. However, once requested, employers must process it correctly.

Are Employers Required to Process Zakat Deductions?

Strictly speaking, Malaysian employment law does not legally compel employers to process zakat deductions.

However, under Section 24 of the Employment Act 1955, employers may make third-party deductions from an employee’s salary — including zakat, ASB, Tabung Haji, ANGKASA, and insurance premiums, with the employee’s written authorisation.

Key conditions that must be met:

The employee must provide explicit written consent
Total deductions from all sources must not exceed 50% of the employee’s monthly wages
Employers must maintain records of all payments for audit and tax reporting purposes

Who Is Eligible to Pay Zakat Pendapatan?

Zakat pendapatan applies to Muslim employees who meet the following conditions:

Condition	Details
Religion	Muslims only
Nisab	Annual income exceeds the current nisab value
Haul	Income has exceeded the nisab for a full lunar year
Income types	Salary, allowances, bonuses, commissions, freelance income, rental income & dividends

Employees whose annual income exceeds the current nisab threshold may be required to pay zakat pendapatan.

2026 Nisab Values by State

The nisab value for zakat pendapatan differs slightly between states because each zakat authority may use different gold prices and calculation methods.

Below are example 2026 nisab references from major zakat authorities in Malaysia. Employees should always verify the latest amount directly with their state zakat centre.

State	Zakat Authority	Estimated 2026 Nisab Value
Federal Territory (KL, Putrajaya, Labuan)	PPZ-MAIWP	Around RM33,000+ annually
Selangor	Lembaga Zakat Selangor (LZS)	Around RM34,000+ annually
Johor	MAIJ	Refer to official portal
Penang	MAINPP	Refer to official portal
Negeri Sembilan	JZNS	Refer to official portal

Important: Nisab values are updated periodically based on current gold prices. HR teams should verify the latest figures directly from the relevant state zakat authority before processing employee declarations.

How to Calculate Zakat Pendapatan

There are two recognised calculation methods:

Method 1 — Gross Income Method

Calculate 2.5% of total annual income without any deductions.

Example:

Monthly salary: RM3,500
Annual income: RM3,500 × 12 = RM42,000
Annual zakat: RM42,000 × 2.5% = RM1,050
Monthly deduction: RM1,050 ÷ 12 = RM87.50 per month

Employers should also understand the difference between Net Salary vs Gross Salary Malaysia when explaining zakat calculations to employees.

Method 2 — Net Income Method

Deduct allowable expenses (EPF contributions, cost of living, dependants) first, then calculate 2.5% of the remaining balance.

Simplified example:

Annual income: RM48,000
Allowable deductions (EPF, living expenses, etc.): RM32,480
Zakat-eligible balance: RM48,000 – RM32,480 = RM15,520
Annual zakat: RM15,520 × 2.5% = RM388
Monthly deduction: RM388 ÷ 12 = RM32.33 per month

HR Note: Calculation methods and allowable deductions differ by state. Employees should confirm the amount with their state zakat centre before submitting the deduction request to HR.

How Employers Process Zakat Salary Deductions — Step by Step

Step 1: Receive Written Application from Employee

The employee must complete a Zakat Salary Deduction Application Form, available from their respective state zakat centre.

The form typically includes:

Employee name & IC number
Monthly zakat deduction amount
State zakat centre account/reference number
Employee signature as written consent

Step 2: Register with the State Zakat Centre

The employer must register as a zakat salary deduction agent with the relevant state zakat authority.

Registration processes vary by state, but most can now be completed online via the official zakat portal.

Step 3: Update the Payroll System

Add the zakat deduction line item to the company payroll system:

Enter the approved monthly deduction amount
Label it as “Zakat Pendapatan” or “Zakat Deduction” on the payslip
Ensure it uses a separate deduction code from PCB/EPF/SOCSO for record-keeping purposes

Zakat deductions should be separated from other Statutory Salary Deductions Malaysia in payroll records.

Step 4: Align with PCB (Monthly Tax Deduction)

This is the most important step that many HR teams overlook.

Muslim employees who pay zakat pendapatan are entitled to a full tax rebate (100%) on the zakat amount paid.

To prevent employees from paying both full zakat and full PCB, HR should:

Receive a TP1 Form from the employee declaring zakat deductions
Adjust the monthly PCB calculation
Reduce PCB by the zakat amount paid that month

Learn more in our complete PCB Guide Malaysia.

PCB Adjustment Example

Item	Amount
Original PCB (before zakat)	RM250
Monthly zakat deduction	RM88
Adjusted PCB after zakat rebate	RM162

Important: PCB adjustment only applies if zakat is paid to a recognised zakat authority approved by the State Islamic Religious Council (MAIN).

Step 5: Remit Payment to the State Zakat Centre

Every month, the employer should:

Consolidate all employee zakat deductions
Make payment directly to the relevant state zakat authority
Retain payment receipts for payroll and audit purposes

Most zakat authorities require payment before the end of the current month.

Step 6: Record in the Annual EA Form

At year end, ensure the total zakat deducted is correctly recorded in the employee’s EA Form (CP8A).

Employers should also ensure the information matches the employee’s EA Form Malaysia Guide.

Employees can later declare the rebate during LHDN e-Filing Malaysia.

Zakat & PCB Alignment: Quick Reference Guide for HR

Situation	HR Action
Employee wants zakat deducted but has not submitted TP1	Process zakat deduction without adjusting PCB
Employee submits TP1 with correct zakat amount	Adjust PCB and reduce monthly PCB
Zakat amount exceeds PCB for that month	PCB becomes RM0
Employee resigns mid-year	Stop deduction immediately and remit final payment

State Zakat Centres Directory

State	Zakat Authority	Official Portal
Federal Territory	PPZ-MAIWP	zakat.com.my
Selangor	LZS	zakatselangor.com.my
Johor	MAIJ	zakat.johor.gov.my
Perak	MAIPk	zakatperak.gov.my
Penang	MAINPP	zakat.penang.gov.my
Kedah	LZNK	zakatkedah.com.my
Kelantan	MAIK	maik.gov.my
Terengganu	MAIDAM	maidam.gov.my
Negeri Sembilan	JZNS	zakatns.com.my
Melaka	MAIM	zakatmelaka.net
Pahang	PZBP	zakatpahang.com.my
Sabah	JHEAINS	zakat.sabah.gov.my
Sarawak	Tabung Baitulmal Sarawak	baitulmal.sarawak.gov.my

e-Zakat via MyEG: Digital Processing for Employers

To simplify payroll processing, employers can also use the e-Zakat system via MyEG.

Benefits include:

Fully online payment processing
Batch payments for multiple employees
Digital receipts for payroll records
Direct payment to state zakat authorities

HR Responsibilities: Annual Zakat Compliance Checklist

Early Year (January – February)

Redistribute TP1 forms to Muslim employees
Update zakat deduction amounts if requested
Verify the latest nisab values by state

Monthly Payroll Processing

Process zakat deductions
Adjust PCB calculations where applicable
Remit payment before month end
Retain all receipts

Year End (November – December)

Record annual zakat in EA Forms
Review employee declarations

Employee Resignation or Termination

Stop deductions immediately
Process final payment
Update payroll records

FAQs

Are employers legally required to process zakat deductions?

No. However, employers may process zakat deductions with written employee consent under Section 24 of the Employment Act 1955.

What percentage of income is zakat pendapatan?

The zakat rate is generally 2.5% of zakatable income.

Can zakat deductions reduce PCB?

Yes. Zakat paid to recognised zakat authorities qualifies for a full tax rebate against PCB.

Does zakat deducted through payroll need to be recorded in the EA Form?

Yes. Total zakat paid must be recorded in the employee EA Form (CP8A).

Do non-Muslim employees need to pay zakat?

No. Zakat only applies to Muslim employees who meet the nisab and haul conditions.

Is zakat the same as income tax?

No. Zakat and income tax are separate obligations, although zakat paid to recognised authorities qualifies for a tax rebate in Malaysia.

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