Dividen EPF 2025 (6.15%): Official Rate and What It Means for Employers

Every year, the announcement of dividen EPF is one of the most anticipated financial updates in Malaysia.

For employees, it directly affects retirement savings. For HR and employers, it often leads to questions about contributions, payroll, and long-term retirement planning.

The dividen EPF 2025 has now been officially announced. Here is a complete breakdown of the rate, how it is calculated, and what it means for both employees and organisations.

Dividen EPF 2025 Announcement

Kumpulan Wang Simpanan Pekerja (KWSP) announced the dividen EPF 2025 on 28 February 2026 through an official media briefing. The dividend covers the financial year ending 31 December 2025.

According to the official announcement:

6.15% for Simpanan Konvensional (total distribution RM67.1 billion)
6.15% for Simpanan Shariah (total distribution RM12.5 billion)

The total dividend distributed for 2025 amounts to RM79.6 billion.

Members can check their dividend statements through the i-Akaun website or mobile application starting 28 February 2026.

What Is Dividen EPF?

Dividen EPF is the annual return declared by KWSP based on its investment performance.

Each year, KWSP invests contributions collected from employees and employers into various asset classes. The profit generated from these investments is then distributed back to members as dividends.

The dividend is calculated based on the average daily balance in a member’s account from 1 January to 31 December.

For Simpanan Konvensional, there is a minimum guaranteed dividend rate of 2.5% under the EPF Act 1991.

For Simpanan Shariah, returns are based fully on Shariah-compliant investment performance and there is no minimum guaranteed rate.

Expected Dividend Rate for 2025

Before the official announcement, economists projected that the dividend rate for 2025 would fall between:

5.8% to 6.5% for Simpanan Konvensional
5.5% to 6.0% for Simpanan Shariah

These projections were supported by strong investment performance:

Gross investment income for the first nine months of 2025 increased by 11% to RM63.99 billion
Investment income for the first half of 2025 increased 3% to RM38.92 billion

The final confirmed rate of 6.15% for both accounts reflects stable performance despite global economic uncertainties.

The final dividend rate each year depends on total annual performance and the size of the EPF fund, which exceeds RM1.3 trillion.

These are projections. The official rate will be confirmed on 28 February 2026.

Comparison with Previous Years

Here is how 2025 compares with recent years:

Year	Conventional	Shariah
2024	6.30%	6.30%
2023	5.50%	5.40%
2025	6.15%	6.15%

The trend shows long-term consistency and resilience even during economic cycles.

When and How Dividen EPF 2025 Will Be Credited

The dividen EPF 2025 is credited automatically after the official announcement. Members do not need to submit any application or request.

Once credited, members can check their updated balance using the following methods:

1. Through the i-Akaun Mobile App

Members can download the KWSP i-Akaun app from the Google Play Store or Apple App Store.

Steps to check:

Open the i-Akaun app.
Log in using your registered ID and password.
The dividend amount will usually appear on the main dashboard under “Account Summary” or as a recent transaction.
To view detailed information, go to “Savings” and select “View Details”.
You may also download the annual statement to see the breakdown for Retirement Account, Sejahtera Account, and Flexible Account.

Members who do not have an i-Akaun should register first before accessing their statement.

2. Through the i-Akaun Website

Members can also check their dividend online through the official website:

Visit: https://iakaun.kwsp.gov.my/

Steps:

Enter your ID and click “Login”.
Confirm the security phrase.
Enter your registered password.
Go to “Savings” and select “Annual Statement”.
Choose the financial year (for example, 2025).
The dividend will be listed under “Annual Dividend”.

3. Through KWSP Kiosks

Members may also visit any KWSP branch or locations that provide KWSP kiosks, including selected banks and shopping centres.

Steps:

Insert your MyKad at the kiosk.
Verify your identity using fingerprint verification.
Select to print either a summary statement or annual statement.
The credited dividend amount will be shown in the statement.

All three options allow members to view their updated savings after the dividend has been credited.

How Dividen EPF Is Calculated

Dividen EPF is calculated using the average daily balance method.

Simple formula:

Dividend = Average Balance × Dividend Rate

Example:

If your average balance for the year is RM50,000 and the dividend rate is 6.15%:

RM50,000 × 6.15% = RM3,075

Contributions made earlier in the year remain invested for a longer period, which increases the compounding effect.

Is Dividen EPF Taxable?

Dividen EPF is not subject to income tax. Members receive the full amount credited into their EPF account.

What Dividen EPF 2025 Means for Employees

The 6.15% dividend means for the employee:

Retirement savings grow steadily.
Compounding continues to strengthen long-term savings.
Voluntary contributions can generate additional returns.

Consistent dividend performance supports financial confidence and long-term retirement planning.

What Dividen EPF 2025 Means for HR and Employers

The dividend announcement does not change employer obligations.

Employer contribution rates remain unchanged. Payroll calculations remain the same. No adjustment is required in EPF deduction processes.

However, HR departments may receive more questions from employees about:

How dividends are calculated
How voluntary contributions work
The difference between Simpanan Konvensional and Simpanan Shariah

This can be a good opportunity to organise financial literacy sessions or share internal guides on EPF benefits.

New EPF Initiatives in 2026

Starting in 2026, several initiatives were introduced:

Akaun Fleksibel

Provides members with more flexibility to access funds for short-term needs.

i-Saraan Plus

Government incentives increased up to RM600 per year for eligible self-employed contributors.

Higher Haji Withdrawal Limit

Withdrawal limit increased from RM3,000 to RM10,000 for eligible members.

These initiatives aim to strengthen retirement planning and improve flexibility.

FAQs

When was dividen EPF 2025 announced?

It was announced on 28 February 2026.

What is the dividend rate for 2025?

6.15% for both Simpanan Konvensional and Simpanan Shariah.

How is EPF dividend calculated?

It is calculated using the average daily balance multiplied by the declared dividend rate.

Is EPF dividend taxable?

No, it is not taxable.

Does the dividend affect employer contribution rate?

No. Employer contribution rates and payroll processes remain unchanged.

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