How to Calculate EPF Dividend for Employers in Malaysia

The Employees Provident Fund (EPF) is one of Malaysia's most crucial retirement savings schemes.

Every year, EPF declares a dividend rate for Simpanan Shariah (SS) and Simpanan Konvensional (SK) that determines how much members earn on their savings.

For 2024, the EPF dividend rate stands at 6.3%, with a total payout of RM73.24 billion.

This strong performance showcases EPF's commitment to ensuring members' savings grow steadily over time.

Historical EPF Dividend Rates from 2005-2024

Over the past ten years, the EPF has delivered a strong yet variable performance, reaching its peak dividend rates in 2017 (6.9%) and 2014 (6.75%) due to favorable market trends.

Even with economic uncertainties both locally and globally affecting investment yields, the EPF has consistently maintained returns above 5.0%.

Year	Simpanan Konvensional (Per Annum)	Simpanan Shariah (Per Annum)
2024	6.30	6.30
2023	5.50	5.40
2022	5.35	4.75
2021	6.10	5.65
2020	5.20	4.90
2019	5.45	5.00
2018	6.15	5.90
2017	6.90	6.40
2016	5.70	-
2015	6.40	-
2014	6.75	-
2013	6.35	-
2012	6.15	-
2011	6.00	-
2010	5.80	-
2009	5.65	-
2008	4.50	-
2007	5.80	-
2006	5.15	-
2005	5.00	-

Total Payout for 2024 Dividend

The Employees Provident Fund (EPF) has disbursed a total of RM73.24 billion in dividends for 2024.

Of this amount, RM63.05 billion was allocated to Simpanan Konvensional (SK), while Simpanan Shariah (SS) received RM10.19 billion.

How Can I Check if the Dividend Has Been Credited Into My EPF Account?

There are several ways to access your Member Statement.

The most convenient options include using the KWSP i-Akaun mobile app or logging into the i-Akaun (Member) web portal.

Additionally, you can visit a Self-Service Terminal (SST) or go directly to an EPF office for assistance.

For a smoother experience, we recommend checking your statement through the i-Akaun app or web portal.

If you haven't registered yet, you can refer to the i-Akaun Registration Guide for step-by-step instructions.

How is the EPF Dividend Rate Calculated?

EPF’s dividend rate is derived from its total annual investment income, adjusted by administrative expenses and reserve allocations.

The formula used is:

Dividend = (Aggregate Balance × Dividend Rate %) / Number of Days in the Year

Where:

Aggregate Balance = (Balance on the 1st of the Month × Days in the Month) + (New Contribution × 1 Day)
Dividend Rate (%) = 6.3% (as per the updated request)
Number of Days in 2024 = 366 (Leap Year)

Example Calculation:

Here’s the detailed monthly breakdown for Mr. M’s EPF dividend calculation in 2024 with a 6.30% dividend rate, based on:

Account 1: RM70,000 opening balance, RM700 monthly contributions
Account 2: RM30,000 opening balance, RM300 monthly contributions
Withdrawal: RM1,000 from Account 1 on 15th February

Example of EPF Dividend Breakdown Calculation (2024)

Month	Days	Account 1 (RM)	Account 2 (RM)	Total Monthly Dividend (RM)
Opening Balance	-	70,000 × 6.30%	30,000 × 6.30%	517.40
January	30	362.19	155.22	517.40
January 31 (After Contribution)	1	12.01	5.15	17.16
February 1–14	14	168.11	72.06	240.17
Feb 15–27 (After Withdrawal)	13	153.94	66.86	220.80
February 28 (After Contribution)	1	13.01	5.72	18.73
March	31	385.30	169.55	554.85
April	30	373.28	164.34	537.62
May	31	399.71	176.06	575.77
June	30	387.24	170.67	557.91
July	31	414.78	182.86	597.64
August	31	428.39	188.78	617.17
September	30	415.29	183.15	598.44
October	31	442.75	195.37	638.12
November	30	429.40	189.49	618.89
December	31	457.22	202.09	659.31
Total Dividend for 2024	365	RM5,238.61	RM2,315.91	RM7,554.52

How Much Dividend Does EPF Guarantee?

According to the EPF Act 1991 (Section 27), the minimum dividend EPF must give members is 2.5% per year.

This means no matter what happens, members will always get at least this amount.

But for Simpanan Shariah, the dividend depends on how well shariah-compliant investments perform. There is no 2.5% minimum guarantee for this option.

Who Sets the Dividend Rate?

Every year, the EPF Board sets the dividend rate after getting advice from the Investment Panel and approval from the Ministry of Finance.

They look at several things before making a decision, including:

How the global and local markets are doing
Profits from different types of investments
The overall state of the economy

When does EPF announce dividends?

EPF will decide on the dividends after the financial year ends, with approval from the Minister of Finance. The EPF Board will set the exact announcement date.

For example, the 2024 dividend rate was declared in early March 2025.

Are SS and SK Dividend Rates the Same?

The dividend rates for Simpanan Shariah and Simpanan Konvensional depend on how well their investments perform each year.

Below is a table showing the dividend rates for past years.

Year	Simpanan Shariah (%)	Simpanan Konvensional (%)
2023	5.40	5.50
2022	4.75	5.35
2021	5.65	6.10
2020	4.90	5.20
2019	5.00	5.45
2018	5.90	6.15
2017	6.40	6.90
2016	-	5.70

Note: The minimum dividend rate for Simpanan Konvensional is 2.5%

How Are SS and SK Different?

Feature	Simpanan Konvensional	Simpanan Shariah
Investment Type	Various assets, including interest-based instruments	Only Shariah-compliant assets
Dividend Rate	Usually higher due to broader investment scope	Slightly lower but fully Shariah-compliant
Eligibility	Open to all members	Requires one-time conversion

Employers should educate their employees on these differences to help them choose the best option.

How Will Members Receive Dividends After Making Withdrawals in 2024?

(a) Members Who Took Out Money Before Retirement in 2024

(For example, withdrawals for housing, turning 50, education, health, Hajj, investments, amounts over RM1 million, or flexible account withdrawals):

The dividend for the withdrawn amount will be added to their EPF account after the 2024 dividend is credited as part of the total yearly dividend.

(b) Members Who Withdrew at Age 55/60 (Combination Option)

If they chose partial payments, the dividend follows the same process as in section (a).
If they chose monthly payments, the dividend for the withdrawn amount will go directly into their bank account after the 2024 dividend is credited.

How Much Money Do Employees Need to Retire in Malaysia?

Many Malaysians wonder how much savings they need after they stop working.

The Employees Provident Fund (EPF) says that to retire comfortably in big cities like Kuala Lumpur, you should have at least RM600,000.

This number is based on a monthly spending of around RM2,450 for daily needs and assumes that a person will live up to 80 years old.

Since the cost of living keeps increasing, this amount helps retirees maintain a decent lifestyle.

EPF also advises people to start saving early and invest in different ways to grow their retirement fund.

Should Employees Invest More Money into EPF?

The limit for extra EPF contributions has increased from RM60,000 to RM100,000, giving you a chance to grow your retirement savings even more.

This change makes EPF not just a savings plan but also a potential investment option.

Since EPF pays out steady dividends that often match market rates, should you think about adding more money?

Looking at past returns, putting extra funds into EPF might be a smart way to secure your future finances.

However, it’s important to consider your overall investments and how much risk you're comfortable with.

If you're unsure, EPF offers free financial advice to help you decide the best way forward.

With a consistent track record of stable returns, EPF remains a crucial component of retirement savings in Malaysia.

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FAQs

How is EPF dividend payout calculated?

EPF dividends are calculated based on total investment income, expenses, and members’ savings. The payout formula is: (Total Investment Income - Expenses) / Total Members’ Savings × 100.

How do I calculate my dividend payout?

Multiply your EPF savings by the declared dividend rate. For example, if you have RM100,000 in EPF and the dividend rate is 5%, your payout is RM5,000.

What is the formula for calculating dividends?

Dividend = (Total Investment Income - Expenses) / Total Members’ Savings × 100.

How is EPF calculated manually?

Check your EPF savings balance.
Apply the declared dividend rate.
Calculate the amount based on the lowest monthly balance before dividend declaration.

By keeping track of EPF dividends, employers can help employees plan for a financially secure future.

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