What is the difference between Zakat (deducted from payroll) and Zakat (paid direct by employee)?

Zakat (deducted from payroll)

This Zakat deduction (amount is to be specified by the employee) means that the employer will make the payment to the Zakat Office on behalf of the employee.  The amount will be deducted from the employee's gross pay and therefore reduce their net pay. The Zakat amount will also reduce any PCB payable.

Zakat (paid by employee)

This payroll item specifies that the Zakat amount is paid to the Zakat Office by the employee themselves. This amount will reduce any PCB payable but is not deducted from the employee's salary. The employee must inform the employer of the amount to be deducted from the PCB in any particular month by submitting form TP1 to their employer. 

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