The Employees' Awareness on the Monthly Zakat Deduction Scheme in Terengganu

Abstract

Although the obligation to pay zakat out of a Muslim’s income has been decreed, there are still a large number of Muslims who do not fulfill this obligation. One of the contributing factors in fulfilling this obligation is the role played by the employers. The importance of this factor until now seems to only be considered in Kedah where the authority has issued a circular compelling all employers to deduct zakat payment from their Muslim employees’ monthly salary. Therefore the understanding of the employers on their role is very important. Their understanding will lend a helping hand in executing this important duty. Therefore this study is initiated to ensure the employers’ perspective towards implementing zakat deduction from monthly salary and to identify factors that influence them to provide or not to provide this facility i.e. the monthly zakat deduction in their company. In this study, survey was conducted among respondents selected from 3000 employers chosen by convenience sampling. A set of questionnaire has been used in order to collect data related to demography, perspective, role and factors influencing the respondents using nominal, ordinal and likert scale. Data gathered has been analyzed using the descriptive and factor analysis. The research shows that the employers’ awareness in carrying out their religious duties will assist the establishment of the monthly zakat deduction facility. The research also shows that a closer relation must be established between the employers and MAIDAM (Majlis Agama Islam dan Adat Melayu Terengganu). MAIDAM itself must carry out a more aggressive outreach programs in order to facilitate the employers and employees in fulfilling their obligation in paying zakat out of their salary income. It is hoped that the finding of this study will help in in eliminating the problem of non-obedient in paying zakat out of salary income and providing the authorities with ideas to improve the existing policy of zakat.

Authors and Affiliations

Engku Muhammad Tajuddin Engku Ali, Syed Mohd Azmi Syed Ab Rahman, Zaharah Salwati Baba, Habsah Muda

Keywords

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  • EP ID EP566181
  • DOI 10.6007/IJARBSS/v8-i7/4526
  • Views 74
  • Downloads 0

How To Cite

Engku Muhammad Tajuddin Engku Ali, Syed Mohd Azmi Syed Ab Rahman, Zaharah Salwati Baba, Habsah Muda (2019). The Employees' Awareness on the Monthly Zakat Deduction Scheme in Terengganu. International Journal of Academic Research in Business and Social Sciences, 8(7), 999-1010. https://europub.co.uk./articles/-A-566181