Zakat Compliance Intention Behavior on Saving Among Universiti Utara Malaysia's Staff

Previous research has shown that there is still low compliance reported in the payment of zakat. However, most of the researchers only focused on the payment of zakat on employment income. An increasing number of people are reported to save their money in saving, fixed deposit and current saving accounts. The collection of zakat on saving is the third highest collection reported by Jabatan Zakat Negeri Kedah after zakat on employment income and zakat on trade. Because of this, this study is motivated to investigate zakat compliance intention on saving among employees of Universiti Utara Malaysia by using theory of planned behavior. A total of 86 questionnaires were returned and used to measure the three independent variables which are attitude, subjective norms, and perceived behavioral control towards the intention to comply with zakat on saving. Based on the results obtained, perceived behavioral control was found to significantly influence intention to comply with zakat on saving, but attitude and subjective norms have no significant influence at all. Generally, theory of planned behavior can be used to explain zakat compliance intention behavior on saving. It is hoped that the finding of the present study will increase the eligible Muslims awareness to pay zakat on saving and help policy makers to be more efficient and effective in the future. The limitations of the study are also presented in this paper

Factors influencing zakat compliance behavior on saving

In most of the states in Malaysia, the collection of zakat on saving is reported as third largest collection after zakat on employment income and zakat on business.However, the collection of zakat including the zakat on saving is still unsatisfactory.Previous empirical evidences reported that many factors that influence individual in paying zakat.Thus, this study aims at to determine the variables that influence the individual in paying zakat on saving i.e. the relationship between the variables of attitude, the referent group, religiosity and perceived corporate credibility with zakat compliance behavior on saving.Data was analyzed by applying multiple regression analysis.The data was collected from 80 individual Muslim employees who are working at Universiti Utara Malaysia.The results of the study indicated that all the variables significantly influence zakat compliance behavior on saving.Based on the results, it can be concluded that zakat compliance behavior on saving could be predicted by his or her attitude, the referent group, religiosity and perceived corporate credibility at 34% level.In view of the results, some implication and recommendation were also discussed

Determinants of employee compliance behavior on zakat on savings

The role of zakat in improving the well-being of the Muslim society is undisputable. Despite its importance, zakat collection is still an issue in Malaysia. It is associated with the low level of compliance behavior among individual Muslims. In addition, most previous studies only focused on the zakat compliance behavior on employment income and business. One form of zakat that has received a lack of scholarly attention is zakat on savings. Due to this gap, this study investigated the determinants of the Muslim employee compliance behavior on zakat savings in Kedah. This study applied the Fischer model as the underlying framework in examining the zakat compliance behavior on savings. Several factors like individual, social, institutional, and economic were included and anticipated to influence zakat compliance behavior on savings in the framework. This study had three key objectives. The first objective was to determine the factors that influence zakat compliance behavior on savings. It also aimed at determining the factors that influence attitude toward zakat on savings. Finally, this study investigated the mediating effect of attitude between the exogenous variables (organizational religiosity, non-organizational religiosity, knowledge, reference group, perceived corporate credibility, tax rebate, and level of income) and the endogenous variable of zakat compliance behavior on savings. Data were collected from 280 public and private sector employees using self-administered questionnaires. The structural equation modeling was applied to test the research hypotheses. The findings revealed several factors that influence zakat compliance behavior on savings as well as attitude toward zakat compliance. The result also indicated that attitude toward zakat compliance mediated the relationship between reference group and perceived corporate credibility on zakat compliance behavior on savings. The implication for theory and zakat institutions is also discussed

Zakat compliance intention behavior on saving among Universiti Utara Malaysia's staff

Previous research has shown that there is still low compliance reported in the payment of zakat. However, most of the researchers only focused on the payment of zakat on employment income.An increasing number of people are reported to save their money in saving, fixed deposit and current saving accounts.The collection of zakat on saving is the third highest collection reported by Jabatan Zakat Negeri Kedah after zakat on employment income and zakat on trade.As such, this study is motivated to investigate zakat compliance intention on saving among employees of Universiti Utara Malaysia by using theory of planned behavior.A total of 86 questionnaires were returned and used to measure the three independent variables which are attitude, subjective norms, and perceived behavioral control towards the intention to comply with zakat on saving.Based on the results obtained, perceived behavioral control was found to significantly influence intention to comply with zakat on saving, but attitude and subjective norms have no significant influence at all. Generally, theory of planned behavior can be used to explain zakat compliance intention behavior on saving.The findings of the present study can be used for the institution of zakat and policy makers to promote and educate the general public as to the importance of zakat on employment income.The implication of the findings to future research and the limitations of the present study are also highlighted

The influence of attitude, reference group and tax rebate on zakat compliance bahavior on savings

The collection of zakat on savings is vital in the development of Muslims society in Malaysia. It contributes significantly into zakat collection as the third largest zakat collection after the collection of zakat on employment income and zakat on business. There are limited study was conducted to explain the factors that influence zakat compliance behavior on savings in addressing the problem of zakat collection on savings. Therefore, the objective of this study is to examine the significant factors that influence zakat compliance behavior on savings. This study issued three independent variables which are attitude, reference group and tax rebate towards zakat compliance behavior on savings. From the analysis of this study, it indicates that attitude, reference group and tax rebate were positive and significantly influence zakat compliance behavior on savings. Result also showed that the most important factors was reference group and followed by attitude and tax rebate. This study also highlighted on the implication toward zakat institutions and suggestions for future research