Islam mandates certain social obligations for all Muslims globally in accordance with Islamic law, one of which is zakat. As legally defined by Law No. 23 of 2011 on Zakat Management, zakat constitutes wealth that must be contributed by a Muslim or business entity and distributed to those entitled according to Islamic law. Indonesia, as the world’s largest Muslim population, has broadened the categories of zakat, encompassing the occupational profession, corporate zakat, property zakat, and others, potentially amassing approximately 327 trillion IDR per year, as indicated by the Ministry of Religious Affairs in 2022. Despite this potential, the Central Research of BAZNAS (Puskas BAZNAS) reported a mere 14.2 trillion IDR in zakat collections for 2022, indicating a substantial gap between potential and actual collections.

Zakat, a mandatory aspect of Islam, forms part of the third pillar of faith, yet there is a noteworthy disparity between its potential and actual collection. The Puskas BAZNAS data revealed that the number of individuals paying zakat (muzakki) is relatively low, at approximately four million people out of a Muslim population, exceeding 241 million. This neglect arises because many Muslims perceive zakat as less important than taxes, partly because of the absence of penalties for non-payment in Indonesian regulations (Mubarak et al., 2021) (Athief et al., 2022). Similar to taxes, optimizing zakat collection is imperative as it plays a vital role in economic development and addresses social issues. Understanding the behavior and determinants of individual decisions regarding zakat payments is crucial for the government and zakat institutions to strategically instill a sense of obligation among Muslims.

This study employed various socioeconomic variables to examine the behavior of Muslims in Indonesia regarding zakat payments. These variables include gender, age, marital status, number of family dependents, loan amount, place of residence, homeownership status, religiosity, income level, and years of schooling. Previous research has consistently identified gender, income level, years of schooling, and religiosity as factors influencing individual decisions regarding zakat payments ((Harmaini et al., 2023); (Ghazali & Ibrahim, 2022); (Muthi’ah et al., 2021); (Abdullah & Sapiei, 2018)).

(Liao et al., 2014) asserted that men and women, shaped by distinct cultures and social backgrounds, exhibit different behaviors. Additionally, research on tax compliance reveals that women tend to be more compliant with paying taxes than men (D’Attoma et al., 2017). Income level is also a determinant of an individual’s ability to pay zakat. Religiosity, defined as an individual’s commitment to religion and its teachings, influences attitudes, behaviors, and character (Lehrer, 2004), making it a crucial determinant of an individual’s willingness to pay zakat. Similarly, years of schooling impact an individual’s decision to pay zakat, with higher education correlating with increased awareness of one’s surroundings and a greater likelihood of alleviating the burden on recipients (Maulana, 2020).

Additionally, age, place of residence, marital status, and number of family dependents are determinants of an individual’s zakat payments (Afifah et al., 2021) (Dianingtyas, 2011) (Aulia, 2019). The place of residence influences individuals’ decisions to give zakat, with the social and cultural environment affecting their awareness and actions. Proximity to zakat services also plays a role, as individuals living nearby are more likely to choose direct visits to contribute (Afifah et al., 2021). Family dependents affect zakat decisions, including homeownership status and loan amounts (Maulana, 2020). Those with personal homes often have a more stable financial status, whereas individuals with debt, are more likely to prioritize loan repayments.

Building on this background, this study examines the socioeconomic determinants of individual Muslim zakat payment behavior in Indonesia. The selected variables were based on previous research aimed at addressing gaps and shortcomings. A significant departure from prior studies lies in the use of secondary microdata, which offer a broader reach than studies that employ primary data obtained through questionnaires and direct interviews (Abdullah & Sapiei, 2018)(Ghazali & Ibrahim, 2022)(Harmaini et al., 2023)(Muthi’ah et al., 2021);(Afifah et al., 2021)(Dianingtyas, 2011)(Aulia, 2019).

Zakat

In the Arabic language, “zakat” translates to “growth” or “purification.” In a terminological context, zakat is an obligation of Allah for every Muslim to meet the minimum nisaab and haul, mandating the allocation of a specific amount to entitled recipients. Zakat evolves into a social obligation in Islamic law, with the recipient (mustahik) experiencing the blessings of Allah’s greatness, fostering mutual assistance and love among human beings for the giver (muzaki) (Abdullah et al., 2015)

Zakat enhanced economic prosperity by redistributing surplus wealth to the poor (Taheri, 2003). Productive zakat can create better utilization of this levied fund by giving recipients the opportunity to develop their potential (Yayuli et al., 2021). Alongside prayer (salat), zakat is a mandatory command from Allah SWT for Muslims, serving as a maaliyah ijtima’iyyah worship crucial for community well-being. It functions as both a vertical act of worship towards Allah (hablumminallah) and a form of horizontal worship (hablumminannas), as mentioned in the Surah at-Taubah verse 103 of the Quran.

Several factors influence zakat payments, including religiosity, faith, and personal obligations. Religiosity acts as a catalyst for Muslims to pay zakat, thus fulfilling one of the pillars of Islam. Devout Muslims tend to give zakat once they meet nisaab and haul, irrespective of their income levels (Maulana, 2020). Personal obligations such as debt and home ownership also impact zakat payments. Some studies suggest that debt can deter zakat payments, while homeownership is correlated with higher contributions (Arsyianti et al., 2018)(Arsyianti & Kassim, 2016)(Wiepking & Breeze, 2012).

However, the income variable results in different correlations with zakat. While some studies indicate that increasing income increases the likelihood of zakat payments (Beik & Alhasanah, 2012)(Arsyianti & Kassim, 2016), others suggest no influence on intention (Huda & Gofur, 2012), because low-income individuals are still obligated to pay fixed amounts, such as zakat al-fitr. Educational levels have also yielded mixed correlations in different studies (Huda & Gofur, 2012).

Despite variations in factors that can influence someone's zakat payment, there are several benefits to zakat (Mahendra et al., 2021):

Socio-Economic

Socioeconomic concepts, often discussed separately, are derived from sociology and economics. Sociology views social aspects as everything related to society, while economics, originating from “oikos” and “nomos,” pertains to household rules (Zunaidi, 2013). Socioeconomic status, a crucial determinant of psychological and life outcomes, integrates human studies into meeting needs and societal well-being, acknowledging that humans, as social beings, cannot exist without addressing basic necessities (Zunaidi, 2013). It encompasses societal norms, including ownership of valuable goods, cultural aspects, and individual participation in community activities (Sastrawati, 2020). Socioeconomics also reflects an individual’s position, intertwining social and economic activities with factors such as income, education, and job position that define their status (Setyorini & Syahlani, 2019).

Socioeconomic status is observable through a person’s occupation, education, health, and fulfilment of household needs (Zunaidi, 2013). In measuring socio-economic status, standards encompass education, job position, income, ownership of valuable goods, and community recognition (Sudarsono, 2016). The ownership of valuable goods and home ownership are highlighted as determinants of socioeconomic status (Setyorini & Syahlani, 2019). Studies on the relationship between socioeconomic variables and zakat assess status based on family dependence, religiosity, marital status, homeownership (privately owned or rented), and individual loans (Aulia, 2019) (Maulana, 2020).

Consumer Behavior Theory

Within the microeconomic theory framework, consumer behavior becomes the foundation for analyzing individual decisions to pay zakat by utilizing the indifference curve model. From this perspective, zakat is treated as a commodity, and muzaki (the payers of zakat) formulate a demand for zakat, with their utility or satisfaction increasing accordingly (Nicholson & Snyder, 2012).

Muzaki, positioned as a consumer, also have various choices of goods to consume. In this context, zakat is considered a consumption good because it reduces budgets. Therefore, consumption goods are limited by the budget, which is referred to in the curve model as a budget line. Under budget constraints, muzaki must choose a combination of several goods to maximize utility. On a curve, this combination can be simplified into two types, as shown in Figure 1.

Figure 1 illustrates thean indifference curve connecting goods x and y. Good x represents zakat and good y represents other consumption goods. The indifference curve is denoted U₁ and has a negative slope. This negative slope indicates the presence of the Marginal Rate of Substitution (MRS). This means that if the muzaki increases the consumption of good x (zakat), it must sacrifice good y (other consumption goods). Therefore, the slope of the indifference curve is .

Muzaki face a limited budget; therefore, the amount of zakat and other items they can consume is limited. If a muzaki has income, symbolized by I, and this income is allocated to goods x, which are zakat, and goods y, which are other consumer goods, the price of zakat is Px, and the price of other goods is Py, then the budget line function is the Equation (1).

Pxx + Pyy ≤ I (1)

From the curve presented in Figure 2, income influences the allocation of a muzaki’'s budget for giving zakat and buying other goods. The budget line has a negative slope for (Py/Px). Therefore, when a muzaki allocates more of its budget to zakat, it allocates less to other goods and vice versa. The size of the combination of zakat and other consumer goods is depicted by the gray area below the budget line curve. The size of the combination cannot exceed the curve because of an insufficient budget.

Giving zakat or consuming other goods is a trade-off faced by Muslims. The first possibility a Muslim may undertake to achieve maximum utility is to consume when the slope of the indifference curve is parallel to the budget line as indicated by Equation (2) and Equation (3).

MRS = Slope of budget line (2)

(3)

This first possibility is illustrated in the following curve:

Based on further elaboration in Figure 3, it can be observed that for a muzaki to maximize its utility, it must consume at point C, where the slope of the budget line and the indifference curve are parallel. The combination of consumption for zakat and other goods is represented by the quantities x and y meeting at point C. However, for Muslims who are obligated to pay zakat but do not pay it for certain reasons, this phenomenon is referred to as a “corner solution.” A corner solution is the second possibility, which occurs when a Muslim prefers one type of good (x) over another (y) or vice versa. The corner solution is formulated using Equation (4) and Equation (5).

MRS ≥ Slope of budget line (4)

(5)

This second possibility is depicted in the Figure 4.

Source: Nicholson & Snyder (2012)

In this condition, Muslims consume only one type of good, so their budget is not allocated to zakat. This condition can also be reversed, in which a Muslim allocates the entire budget to pay zakat and does not buy other goods. The second possibility is very rare and is not discussed in this study. This study focuses only on the first possibility.

Previous Studies

Many previous studies have examined the individual determinants influencing zakat payment behavior, commonly focusing on religiosity, income, gender, and education. For instance, (Abdullah & Sapiei, 2018) found that religiosity and gender significantly affect zakat compliance, although formal Islamic education did not show a strong influence. Likewise, (Ghazali & Ibrahim, 2022) highlighted that trust, knowledge, and payment methods are key factors shaping one's intention to pay zakat. These studies have primarily used primary data, such as questionnaires and interviews, and are mostly confined to limited respondent groups, making it difficult to generalize the findings across broader Muslim populations.

Despite these contributions, inconsistencies remain in the literature. (Muthi’ah et al., 2021) and (Dianingtyas, 2011) show different sets of significant factors, with some emphasizing religious understanding and social awareness, while others highlight organizational trust or education and income. Moreover, the study by (Harmaini et al., 2023) on Minang society introduced subjective norms and culture as potential determinants, but its regional focus limits its applicability to the national context. Additionally, local studies like (Afifah et al., 2021) and Mutia (2021) have examined the role of payroll systems and institutional factors, yet these findings lack the breadth and representativeness to inform national zakat policy effectively.

This study distinguishes itself by utilizing secondary microdata from a large-scale national survey and therefore a offering more representative insights into the behavior of zakat payers in Indonesia. Unlike prior research that mostly relied on small samples or local contexts ((Muthi’ah et al., 2021);Mutia, 2021;(Dianingtyas, 2011), this study adopts a broader approach to assess the socioeconomic determinants of zakat compliance. The use of nationally representative data allows for more generalizable findings and addresses the gap in prior studies, which often failed to integrate multiple determinants in one robust empirical framework. This makes the present research a timely contribution to understanding and improving zakat collection in Indonesia.

Type of Research and Data

This study relies on secondary data obtained from the Indonesian Family Life Survey (IFLS) dataset, which is a longitudinal socioeconomic household survey conducted based on a household sample representing 83% of Indonesia’s population across 13 provinces in Indonesia, which was gathered by (Strauss et al., 2016). The methods employed in this study included both descriptive and quantitative approaches. The variables collected included socioeconomic determinants and factors that influenced an individual’s decision to pay zakat. The data were processed using the statistical software STATA 17. The data utilized followed a cross-sectional format, specifically the 2014 IFLS 5 and were analyzed using a probit regression model. This model was chosen for this study because it offers the advantage of assessing outcomes across multiple categories within the dependent variable, thereby allowing us to determine the probability levels of individuals paying zakat.

Definition of Variables

The variables utilized in this study encompass socioeconomic determinants and other factors that influence individuals’ decisions to make zakat payments. Fourteen variables were used in this study. These 14 variables were categorized into different types: one dependent variable, which is a zakat dummy variable used to analyze individuals’ zakat payment decisions, and the remaining thirteen serve as independent variables. These independent variables included sex, age, age-squared, household size, homeownership, place of residence, loans, years of schooling, marital status, income, religiosity, and occupation. Table 1 provides the definitions of these variables.

Empirical Model

The model used in this research was constructed based on theoretical foundations and previous studies. To examine individual decisions regarding zakat payments, we employed a probit regression model (Mastromatteo & Russo, 2017). This model is used when a study aims to explore individual decisions using dependent variables that are categorical or referred to as latent variables (Gujarti & Porter, 2013). Hence, it suits the objective of this study, where the dependent variable is either a person paying or not paying zakat. Probit models were estimated using the Maximum Likelihood Estimation (MLE). The general form of the probit regression model follows Equation (6).

yi* = β0 + βixi + ui where i = 1, 2, 3,…,n (6)

Variable yi* represents a latent variable that serves as the dependent variable for both x and the error term (ui). Meanwhile, yi* is an ordinal variable with values ranging from zero to one. The equation is then transformed into an equation with a dummy dependent variable as shown in Equation (7)

P(y=1) = P(y*>0) = P(β0+β1x1+ui>0)  = P(ui> − β0−β1x1)

\frac{{- \beta}_{0} - \beta_{1}x_{1}}{\sigma} \right) \end{document} ]]> (7)

Owing to the symmetric normal distribution, we can write this model using the Maximum Likelihood as in Equation ( 8).

\frac{{- \beta}_{0} - \beta_{1}x_{1}}{\sigma} \right)\ \ \ \ = P\left( \frac{u_{i}}{\sigma} < \frac{\beta_{0} + \beta_{1}x_{1}}{\sigma} \right)\ \ \ \ \ \ \ \ = \Phi\left( \frac{\beta_{0} + \beta_{1}x_{1}}{\sigma} \right) \end{document} ]]> (8)

In the probit model, the coefficients cannot be interpreted directly; instead, the interpretation is based on the marginal effects of each individual variable as in Equation ( 9).

(9)

where xj comprises x 1 , x 2 , x 3 , and so forth. Therefore, the empirical model for examining decisions on zakat can be expressed as follows:

Zakati* = β0 + β1Malei + β2Hhsizei + β3Agei + β4Agesqi + β5Hmowni + β6Loani

 + β7Educi + β8urbani + β9marriedi + β10Incomei + β11Religi + β12Occupi + ui

Where:

Zakat : Dummy zakat Educ : Years of schooling

Male : Dummy gender Urban : Dummy place of residence

Hhsize : Houshold Size Married: Dummy marital status.

Age & Agesq : Age and age squared Income: Per capita expenditure.

Hmown : Dummy home ownership Relig : Dummy religiosity

Loan : Dummy loan Occup : Employment status

Descriptive Analysis

The sample used in this study consisted of individuals aged 15 years and older who adhered to the Islamic faith. Using the dataset provided by (Strauss et al., 2016), there were 17,547 observations in this study. Table 2 presents summary statistics, such as the number of observations, mean or average, measurements, standard deviation, and minimum and maximum values for all data used in this research.

Table 2 presents the respondents’ key demographic and socioeconomic characteristics. The data highlight a pronounced inclination toward zakat payments, with approximately 97.91% of respondents identifying as zakat contributors and only 2.09% not participating in zakat contributions. This statistic underscores the prevalence of charitable giving among the surveyed population. Regarding household size, the average number of individuals per household was approximately 4.15, ranging from a minimum of 1 to a maximum of 15. These figures provide insights into the typical household composition of the studied population. Regarding gender distribution, the dataset indicated that approximately 54.39% of the respondents were male and 45.61% were female. This distribution reflects a relatively balanced representation of both genders in the sample, indicating gender diversity among the respondents. The average age of the respondents was approximately 39.07 years, with ages ranging from 15 to 93 years. This age distribution offers a glimpse into the demographic diversity and age range of study participants. In terms of home ownership, the data revealed that 76.79% of the respondents owned their homes, while approximately 23.21% did not have home ownership. These statistics illustrate the prevalence of homeownership in the surveyed population.

The variable related to place of residence indicated that 57.0% of the respondents resided in urban areas, whereas 43.0% lived in rural areas. This distribution reflects the urban-rural divide among the study participants. Further insights into the financial status of the respondents are provided through the variable related to loans, which indicates that 41.16% of the respondents have loans, whereas 58.84% do not have any outstanding loans. The variable “years of schooling” demonstrates an average of approximately 8.70 years of education, with a minimum value of 0 (indicating no formal education) and a maximum of 16 years. These statistics shed light on educational attainment levels within the sample. Marital status was characterized by a nearly equal split, with 49.98% of respondents being married and the remaining 50.02% categorized as unmarried. This balanced distribution reflects the diverse marital statuses of the study participants. The variable “income” indicates an average per capita expenditure of approximately 3.17, ranging from a minimum of 1 to a maximum of 5. These data provide insights into the financial resources available to respondents. Finally, in terms of religiosity, most respondents (approximately 78.98 %) were identified as religious, whereas the remaining 21.02% were nonreligious. This variable sheds light on the religious orientations of many individuals in the sample. In terms of occupational status, most respondents were self-employed (34.47%) and laborers (39.42%), while the remainder belonged to categories such as unpaid family workers and freelancers.

Probit Regression Result

Based on the probit regression results shown in Table 3, it can be concluded that, overall, the independent variables have an impact on individual decisions to purchase zakat. This statement is supported by a prob> chi-squared value of 0.000, which is lower than the alpha level of 5% or 0.05. The pseudo R² value is 0.086, indicating that the combination of all independent variables can explain 8.6% of the dependent variable, whereas the remaining 91.4% is explained by other variables not included in the model. Microdata research typically involves more observations than research using standalone surveys or macro-level data. A larger number of observations mathematically implies an expansion of the denominator in R², resulting in a smaller R² value.

Table 3 presents the results of the probit regression analysis and the corresponding marginal effects. The regression results showed that prob>chi-square was 0.000. A prob>chi-square value smaller than 5% (0.05) indicates that the overall independent variables have an impact on the behavior of Muslims who give zakat. After conducting probit regression and its marginal effects, as shown in the table below, it is true that Muslims’ place of residence and marital status do not affect their behavior in giving zakat. This statement is based on the significance values (P>|Z|) of the variables place of residence and marital status, which are 0.281 and 0.126, respectively, and greater than the alpha level (a=5%/0.05).

The household size variables significantly influenced the behavior of Muslims in giving zakat. This statement was based on a significance value (P>|Z|) of 0.000, which was lower than the alpha level (α=5%/0.05). Looking at its marginal effect, for every increase in the number of households, the probability of giving zakat increased by 0.44%. Gender significantly influenced the behavior of Muslims in giving zakat. This statement was based on a significance value (P>|Z|) of 0.013, which was lower than the alpha level (α=5%/0.05). Looking at its marginal effect, male Muslims have a 0.44% lower probability of giving zakat than female Muslims.

Age significantly influenced the behavior of Muslims in giving zakat. This statement was based on a significance value (P>|Z|) of 0.000, which was lower than the alpha level (α=5%/0.05). Looking at its marginal effect, for every one-year increase in a Muslim's age, the probability of giving zakat increased by 0.0012 units of money. Looking at the variable age squared (agesq), an increase in a Muslim's age increases the probability of giving zakat up to a certain age. Once they reach age (specific age), the probability of consuming zakat decreases.

The homeownership variable significantly influenced the behavior of Muslims in giving zakat. The statement is based on the significance value (P>|Z|) of 0.000, which is smaller than the alpha level (α=5%/0.05). Looking at its marginal effect, Muslims who own their own homes have a 1.66% higher probability of giving zakat compared to those who do not. The loan amount variable significantly influenced the behavior of Muslims in giving zakat. This statement was based on a significance value (P>|Z|) of 0.000, which was lower than the alpha level (α=5%/0.05). Looking at its marginal effect, for every unit increase in a Muslim's loan amount, the probability of giving zakat increased by 0.007.

Years of schooling significantly influenced the behavior of Muslims in giving zakat. This statement was based on a significance value (P>|Z|) of 0.000, which was lower than the alpha level (α=5%/0.05). Looking at its marginal effect, for every increase in the Muslim year of schooling, the probability of giving zakat increases by 0.15%. The income variable in logarithmic form significantly influences the behavior of Muslims in giving zakat. This statement was based on a significance value (P>|Z|) of 0.000, which was lower than the alpha level (α=5%/0.05). Looking at its marginal effect, for every unit increase in Muslim income, the probability of giving zakat increases by 0.73%.

The religiosity level variable significantly influences the behavior of Muslims in giving zakat. This statement was based on a significance value (P>|Z|) of 0.031, which was lower than the alpha level (α=5%/0.05). Looking at its marginal effect, religious Muslims have a 0.49% higher probability of giving zakat than non-religious Muslims do. Occupation significantly influenced the behavior of Muslims in giving zakat. This statement was based on a significance value (P>|Z|) of 0.044, which was lower than the alpha level (α=5%/0.05).

Based on the research results, it is evident that the variable "number of household size" holds a significance value (P > |Z|) of 0.000<0.05, indicating a significant positive influence on the behavior of Muslim individuals in paying zakat. The larger the household, the more likely it is for an individual to pay zakat. This pattern is attributed to the influence of social and family factors that shape individual behavior, as noted by (Febriyani, 2021).

Similarly, the gender variable shows a significance value (P > |Z|) of 0.000<0.05, signifying a significant positive influence on the behavior of Muslims in paying zakat. This result aligns with the research by M. (Abdullah & Sapiei, 2018), (Aligarh, 2021)(Handayani et al., 2022), indicating that gender plays a role in zakat compliance. This interpretation suggests that if two individuals are identical in all other aspects but differ in gender, the probability of a male paying zakat decreases by -0.004 compared to a female. This finding is consistent with (Watson & Mcnaughton, 2007) explanation that women tend to be more rule-abiding because of their higher level of risk aversion.

Furthermore, the age variable demonstrates a significance value (P > |Z|) of 0.000<0.05, implying a significant positive influence on the behavior of Muslims in paying zakat. As individuals grow older, their understanding of zakat tends to increase, fostering a greater willingness to pay zakat. Additionally, older age typically results in a more stable income, making individuals more likely to fulfill zakat obligations, especially zakat maals, with a requirement to reach the nisab. This finding is consistent with that of (Huda et al., 2013).

The homeownership variable holds a significance value (P > |Z|) of 0.000<0.05, indicating a significant positive influence on the behavior of Muslims paying zakat. Homeownership, representing a financial responsibility that requires fund allocation, positively affects the decision to pay zakat. This result aligns with (Maulana, 2020), suggesting that homeownership influences the decision to pay zakat.

In contrast, the place of residence variable has a significance value (P > |Z|) of 0.281, which exceeds 0.05, indicating that place of residence does not significantly influence the behavior of Muslim individuals in paying zakat. There was no discernible difference in zakat payment behavior between individuals residing in rural and urban areas. The obligation to pay zakat remains consistent for all Muslims irrespective of their residential location. This finding is consistent with a study by Daulay and Lubis (2015), in which only 24% of respondents cited location as a factor causing reluctance to pay zakat.

In contrast, the loan amount variable holds a significance value of P > |Z| equal to 0.000 < 0.05, signifying a significant positive influence on the behavior of Muslims paying zakat. Individuals in debt may utilize loans for productive purposes, contributing to increased income and influencing their behavior in paying zakat.

The variable of years of schooling demonstrated a significance value of P > |Z| equal to 0.000 < 0.05, indicating a significant positive influence on the behavior of Muslims in paying zakat. This aligns with research studies by Amanta et al. (2014) and Maulana (2020), suggesting that a longer duration of education can affect an individual’s likelihood of paying zakat. Society members with higher levels of education tend to possess greater awareness and knowledge of the obligation to pay zakat, leading to increased conscientiousness in fulfilling their zakat payment obligations. However, these findings contradict the research conducted by (Handayani et al., 2022), which indicates that the level of education does not influence zakat payments, possibly because of variations in the depth of religious teachings explored in formal education.

The marital status variable has a significance value of P > |Z| equal to 0.126, exceeding 0.05, indicating that marital status does not significantly influence the behavior of Muslims in paying zakat. This aligns with the research conducted by (Dianingtyas, 2011), who found that marital status does not have a significant impact on employees' willingness to pay zakat.

The income level variable holds a significance value of P > |Z| equal to 0.000 < 0.05, implying a significant positive influence on the behavior of Muslims paying zakat. This aligns with the research conducted by (Aligarh, 2021), (Aulia, 2019), and (Beik & Alhasanah, 2012), who asserted that income has a significant positive impact on the decision to pay zakat. Income plays a crucial role in zakat contributions, especially zakat maal, as it is determined by an individual’s income. A higher income level makes it easier for individuals to fulfill zakat obligations because their basic needs are typically met, allowing for surplus funds. Therefore, income significantly influenced zakat payments.

Moreover, the religiosity variable demonstrated a P >|Z|significance value of 0.031, falling below 0.05. This indicates that religiosity significantly and positively influences the behavior of Muslims in paying zakat. These findings align with those of (Aligarh, 2021), (Aulia, 2019), and (Dianingtyas, 2011), highlighting the substantial impact of religiosity on compliance and decision making regarding zakat payments. Individuals with a deeper religious understanding exhibit greater awareness and commitment to fulfill their religious obligation to pay zakat. (Ghaouri et al., 2023) also emphasize that individuals with strong faith possess fundamental knowledge of zakat obligations. Occupations encompassing aspects of business governance, work environment, and other factors influence the behavior of Muslim individuals in paying zakat. Therefore, high religiosity significantly influences zakat payment behavior.

Similarly, the occupation variable had a significance value of P > |Z| equal to 0.044, which was less than the alpha value (0.05). This indicates that occupation significantly and positively influences the behavior of Muslims in paying zakat. This finding aligns with that of (Hamid & Zulkifli, 2018), suggesting that good corporate governance positively and significantly impacts employees’ motivation to pay zakat. Furthermore, the type of occupation correlates with income and position; thus, occupations with higher incomes and honorable positions significantly influence the behavior of individuals paying zakat.

In conclusion, socioeconomic factors play a pivotal role in formulating strategies to enhance zakat fund collection. Zakat institutions can leverage socioeconomic research to devise effective strategies to maximize the zakat potential in Indonesia. For instance, with respect to the socioeconomic factors of income level, zakat institutions can develop targeted programs to raise awareness among individuals with higher incomes compared to those with lower incomes, thereby accelerating zakat fund collection in alignment with their potential.

Based on the analysis conducted in this study, it was found that individuals with higher socioeconomic status were statistically more likely to contribute zakat. It can be concluded that several factors have a significant positive influence on the behavior of Muslims in paying zakat. These factors include the number of households, gender, age, homeownership, loan amount, years of schooling, income level, religiosity, and occupation. The findings suggest that the number of households as well as gender, age, income level, religiosity, and occupation are important factors that influence an individual’s behavior in paying zakat. However, place of residence and marital status did not significantly influence zakat payments.

These findings have important implications for Indonesian zakat institutions. Zakat institutions can use socioeconomic research to develop strategies to maximize zakat fund collection. For example, zakat institutions can develop programs to raise awareness among individuals with higher incomes, as they are more likely to have surplus funds and contribute more to zakat. Additionally, zakat institutions can collaborate with religious institutions to enhance their religiosity and the understanding of zakat obligations among society members.

However, this study faced the challenge of the unclassified nature of zakat data. In the future, it is hoped that survey institutions such as RAND and BPS Indonesia can enhance modules such as the IFLS or other surveys such as SUSENAS by adding specialized sections on religious matters, including expenditures related to zakat, infak, sedekah, qurbani, umrah, and hajj. This would enable other researchers to address the phenomenon of religious behavior among the Indonesian Muslim population through a scientific approach supported by robust statistical data. Additionally, because most respondents in the IFLS dataset are zakat payers, this might have affected the inference. Further research should address these limitations.