The Influence of Income Level, Educational Background, and Zakat Literacy on Zakat Payer Compliance for Paying Zakat Case Study at National Zakat Agency of Yogyakarta Indonesia

Abstract

This study aims to examine and prove the influence of income levels, zakat literacy, and educational background on compliance with Zakat payments at the National Zakat Agency of Yogyakarta (BAZNAS DIY). This study uses a quantitative employing inferential statistical analysis (correlation). The collected data was processed with inferential Statistical analysis (correlation), the analyzed data obtained with Structural Equation Modeling (SEM) and Partial Least Square (PLS) through the SMART-PLS version 4.0 software. Data was collected through questionnaires with predetermined respondent criteria. The number of samples successfully obtained and processed was 250 respondents. The findings reveal that income level, zakat literacy, and educational background all have a significant and positive effect on muzakki compliance in paying zakat through BAZNAS DIY. Therefore, BAZNAS DIY and related institutions can enhance education programs and zakat literacy campaigns to increase public awareness and understanding of Zakat’s importance and paying zakat. Furthermore, BAZNAS DIY can consider more effective strategies to target high-income groups and increase the number of muzakki. Additionally, good education can increase awareness and compliancezwith zakat obligations. Thus, zakat institutions should collaborate with educational institutions to include zakat material in the education curriculum.