Factors Affecting Employees’ Preference to Pay Zakat: Case of Amil Zakat Institution of Bogor Agricultural University

Abstract

The aim of the Indonesian Government Regulation No 14/2014 is to assist the national zakat agency - BAZNAS in zakat collection by forming zakat collector units in government institutions such as in higher learning institutions’ campuses. The Zakat Collector Unit of Amil Zakat Institution of Bogor Agricultural University (LAZ IPB) has been established for this reason in 2003, however, despite being in existence for quite a while, its development has been rather slow. The aim of this study is to explore the potential issues on income zakat and determine factors affecting the employees to pay income zakat using the service of LAZ IPB. Data collection was conducted during the period from 1^stApril 2014 to 7^thJune 2014. In methodology, the study adopted the Logistic regression technique to analyze the factors affecting the employees to pay zakat with LAZ IPB. The findings showed that two factors, namely service and income level were significant in influencing the employees to pay their income zakat with LAZ IPB. Demographic factors such as occupation and gender are also affecting the preference of employees to pay zakat in LAZ IPB.