MOST Muslims will have to contribute between 50 cents and $5 more a month to the Mosque Building and Mendaki Fund next year - with those with higher incomes paying more.

The increase in contributions will give the community fund $3 million more, Minister-in-charge of Muslim Affairs Yaacob Ibrahim said on Tuesday.

RELATED LINKS  Muslim Employee Contribution to the Mosque-building and Mendaki Fund

Prime Minister Lee Hsien Loong in his National Day Rally speech on Sunday said funds from the increase in contributions will go towards raising the quality of religious education, upgrading old mosques and expanding Mendaki programmes, especially for dysfunctional families.

These are three areas that are high on the community's agenda.

Dr Yaacob, who is Environment and Water Resources Minister, acknowledged that the raise comes at a time when cost of living is rising.

But it was necessary as the community was embarking on new projects in all three areas of concern, he said.

'We have tried to keep the impact on low-income families as low as possible,' he said, noting that rates for workers earning $3,000 and below will go up by no more than $1.

Some 80 per cent of Muslim workers fall into this category.

Contributions to the fund are deducted from the monthly salaries of Muslim workers, who can opt out, or can even decide to increase their contributions. Non-Muslims can also give to the fund.