Zakat As An Instrument For Social Security System: Justification And Framework

Abstract

Social security system aims to protect the poor and weak from the adverse socio-economic changes in the quality of living standards. Social security is oriented to the principle of social welfare as a social mechanism that provides protection for the rights of citizens to live and welfare for all levels of society. In Islamic economic system, zakat has the potential to be used as an instrument to build a social security system that would function as a buffer to prevent the decline in the level of community welfare or to help people survive and not to fall further due to problems such as unemployment, sickness, family break up, and others. However, discussion on how zakat could be functioned and operationalized as an instrument for social security system is limited. This article attepts to offer justification for zakat as an instrument that can be used to build an integrated, long-term (sustainable) social security system and has major implications for improving the welfare of society in three fundamental dimensions of life, namely education, health and standar of living. Zakat funds can be used for direct financing and payments in the fields of health, education and improving living standards or as premium payments to insurance institutions that provide social security services as an effort to anticipate and reduce risks experienced by the community. This zakat-based social security system can be administered independently by the civil society for their collective wellbeing.