Setting Zakat as a Percentage (%) of PCB in brioHR

Audience & Scope

Audience: HR Admin

Module: Payroll

Country: Malaysia

Zakat is a religious obligation for Muslims and is generally calculated at 2.5% of a person’s income. In Malaysia, Zakat functions as an alternative to income tax, specifically the Potongan Cukai Bulanan (PCB). Employees who contribute Zakat via salary deduction are entitled to a PCB rebate, up to the full amount of the PCB payable.

To provide greater flexibility in payroll management, our system now allows administrators to set Zakat as a percentage (%) of PCB, in addition to custom or fixed configurations.

Step-by-Step Instructions to Enable Zakat as % of PCB at the Employee Profile

1. Go to Employee Profile and click into the Payroll tab

2. Scroll to Statutory Contributions and you will see a new field for “Zakat”

3. Click on the Pencil icon/ Edit button and click on the dropdown to choose the preferred configuration, you will now see the option % of PCB showing

4. Once you choose the Zakat as % of PCB, you will need to fill in the percentage and then choose which cycle will this be applicable to.

5. Click Save to capture the configuration.

How it Appears in Payroll

Once the Zakat % of PCB has been setup for the employee, the payitem 'Zakat (Deducted From Payroll)' will automatically appear in the payroll cycle as per screenshot below.

Common Issues/FAQ

Q: What are the options available for adding Zakat contribution for the employee?

A: The Zakat contribution can be added manually through payroll items, and it can also be setup through the employee profile to be captured within the payroll cycle.

Q: Why doesn't Zakat appear during payroll processing after adding in the employee's profile payroll?

A: Please ensure that Zakat is enabled under Payroll Center General Settings. You can take a look at the beginning section of this article for the how-to.

Q. Will Zakat affect PCB (Monthly Tax Deduction)?

A: Yes, Zakat declared in payroll can reduce the employee's PCB amount.

1. How to Set Up Zakat Deduction in Payroll BrioHR

2. How to Create a Zakat Deduction List Report in Payroll

3. How to Bulk Import Pay Items in Payroll