Income Distribution System of Household Sector: Comparative Study of Islamic Economics and Conventional Concepts

Economic growth is inseparable from distributional justice for every individual. But in
reality, there appears to be injustice and inequality in the distribution of income and wealth,
thus impacting on increasing the number of poverty. The policy of distribution in Islam
upholds the values of justice. Economic welfare is the result of the work of all elements in
society, both government, household and company. Similarly, in creating distributive justice,
not only the responsibility of government but also the public's obligation to make it happen.
This article discusses how the concept of wealth distribution of household sector in Islamic
economy and how it differs from the concept of distribution in conventional economy. The
research method used is library research (Library Risearch), with data analysis method using
inductive and deductive method. The results found; the distribution of households' income
from the perspective of Islamic economics contains religious value (valued based), the
process of the Muslim family's economic activity based on halal haram legality ranging from
productivity (employment), property rights, consumption (spending), transactions and
investments. There is a priority in the distribution of household sector assets such as the
fulfillment of the primary needs of the family is preferred prior to the implementation of
zakat, while wakaf udhiyah infak and testament is done after paying zakat. This is very
contrary to the conventional concept in the distribution of households' household wealth,
where the concept is empty of religious values, tends not to support productivity and
investment aspects and does not prohibit the consumption of consumptive (tabzir). In
addition, there is no priority in the distribution of household income and does not pay
attention to the illegal halal legality in the process of family economic activity.