Motivations of Paying Zakat on Income: Evidence from Malaysia

Abstract

Zakat on income is one of the emerging issues among Syariah scholars where they might have varying opinions regarding it. The aim of this paper is to identify factors that may influence the Muslims behaviour towards zakat on income. Academicians from three faculties in the International Islamic University Malaysia (IIUM) were used as sample in this study. They were sent self-developed questionnaires requiring them to indicate their level of agreement on certain factors which might influence them in paying zakat on income. Based on the mean ranking of those who pay zakat, the findings suggest that social, religious and economic factors prevail over the other relatively 'self-centered' factors. This study concludes by suggesting that there is a need for proper education on zakat which may eventually help the Ummah to benefit from the noble system of zakat.

The Relationship between Income Household and Intention to Pay Zakat on Income among Indonesian Academicians

“…Give of the good things which you have honourably earned and out of that which we bring forth for you from the earth of the fruits of the earth which we have produced for you" Based on the above provision, the zakatability of wealth is general and inclusive of any types of wealth, including income. The text points out that Allah commands every Muslim to pay zakat on everything that he/she earned, including those who earn income are subjected to zakat (Abu Bakar and Abdul Rashid, 2010). Evidence that employment income is subject to zakat is also provided in the Sunnah.…”

“…Referring to the existing literature (e.g., Kahf, 1999;Abu Bakar and Abdul Rashid, 2010), this study argues that income earned by individual Muslims is subject to zakat. The evidence that income earned by individual Muslims is subject to zakat are stipulated in various Islamic law and regulation: Quran, As-Sunnah, and Qiyas.…”

“…Following Abu Bakar and Abdul Rashid (2010), this study argues that academicians mostly have an income level that exceeds the nisab. In this perspective, the targeted academicians are the ones who have the minimum amount of income that reaches Nisab of IDR 36 million per year.…”

“…Evidence that employment income is subject to zakat is also provided in the Sunnah. For instance, Prophet Muhammad (PBUH) complements the above Quran verse in his sayings: Narrated by Abu Burda: Bakar and Abdul Rashid, 2010) Based on the above Hadith, it could be stated that Islam requires every Muslim to engage is in economic resources and activities to produce a certain amount of income in order for Muslims to be able to perform his/her zakat obligation (Abu Bakar and Abdul Rashid, 2010).…”

“…Referring to Abu Bakar and Abdul Rashid (2010), this study defines zakat on income as "an Islamic levy on personal income derived from sources or activities where labours are involved including professional fees, labour compensation, salaries, wages, bonuses, grants, gifts, dividend income and the like". Meanwhile, intention to pay zakat on income is defined as an individual's willingness to pay zakat on income.…”