Employees Provident Fund (EPF) is Malaysia's national retirement fund. Every month, a portion of your salary goes into the fund, the fund invests it, and each year it pays you a dividend, meaning a return credited straight to your account. For Simpanan Konvensional, the standard portfolio, it has paid above 5% every year since 2009. The lowest rate the EPF has ever declared was 2.50%, back in the 1950s. Even during the 2008 global financial crisis, it managed a 4.50% dividend.
If you're a private sector employee, your contributions are growing in a fund that has outperformed fixed deposits in most years, and you don't have to do anything for that to happen.
Historical EPF Dividend Rates (2013 to 2025)
The table below shows EPF dividend rates from 2013 to 2025. Your savings sit in one of two portfolios, either Simpanan Konvensional, the standard option, or Simpanan Shariah if you prefer your money invested according to Islamic principles. Simpanan Shariah only launched in August 2016, so its rates only go back to 2017.
| Year | Simpanan Konvensional Dividend Rate (%) | Simpanan Shariah Dividend Rate (%) |
| 2013 | 6.35% | — |
| 2014 | 6.75% | — |
| 2015 | 6.40% | — |
| 2016 | 5.70% | — |
| 2017 | 6.90% | 6.40% |
| 2018 | 6.15% | 5.90% |
| 2019 | 5.45% | 5.00% |
| 2020 | 5.20% | 4.90% |
| 2021 | 6.10% | 5.65% |
| 2022 | 5.35% | 4.75% |
| 2023 | 5.50% | 5.40% |
| 2024 | 6.30% | 6.30% |
| 2025 | 6.15% | 6.15% |
Source: EPF dividend resource centre. Simpanan Shariah registration opened on 8 August 2016; Shariah savings were managed from January 2017. No Shariah rate applies before that year. For 2025, the EPF declared 6.15% for both Simpanan Konvensional and Simpanan Shariah, a slight dip from the 6.30% paid in 2024, with a total payout of RM79.6 billion. The highest conventional rate in this period was 6.90% in 2017, the highest since 1996, followed by 6.75% in 2014. The lowest was 5.20% in 2020, driven by the market disruption from COVID-19.
The best fixed deposit rates at Malaysian banks currently sit around 3% to 4% per year, so the EPF is still returning well above what you'd get leaving your money in a fixed deposit. Even in a bad year, the law guarantees Simpanan Konvensional pays at least 2.5% a year.
What Drives The EPF Dividend Rate Up Or Down
The EPF takes your contributions and puts them to work across a range of investments, from local and international stocks to bonds, property, and infrastructure projects. The dividend rate declared each February or March shows how well those investments performed the previous year. When global markets do well, the rate tends to go up. When they don't, it comes down.
2016 (5.70%): 2016 was a rough year globally. Brexit, the US presidential election, falling oil prices, and a weakening ringgit all hit the EPF's overseas investments at once, which is why the rate dropped to 5.70%.
2017 (6.90%): After a rough 2016, global markets recovered, and the factors that weighed on returns the year before largely reversed. The EPF ended up delivering its highest rate since 1996.
2020 (5.20%): COVID-19 triggered sharp falls across global markets in the first half of the year. The EPF still managed above 5%, but the rate was lower because some investments couldn't be sold at the right prices.
2024 (6.30%) and 2025 (6.15%): International investments drove the majority of returns in both years. For the full year 2025, global investments made up 38.3% of the EPF's RM1.41 trillion in assets but generated RM39.9 billion in income, just over half the total return. For a deeper look at what shaped the 2025 rate, economists have weighed in on what the 6.15% dividend means for members.
How The EPF Dividend Rate Is Calculated
The EPF works out the dividend rate each year using a formula from its official guidelines.
Dividend Rate = Net income × (1% ÷ Total required for a 1% dividend)
Where:
- Net income = Investment income + non-investment income, less expenses
- Total required for a 1% dividend = the opening balance of contributions at the start of the year, plus monthly contributions weighted by how many months they were in the account. A contribution made in October, for example, counts for three months rather than twelve. This pro-rating, meaning the dividend is calculated only for the months the money was actually in the account, is what the September example below illustrates.
The EPF adds up everything it earned from investments that year, deducts running costs, and divides what's left across all member balances to arrive at the rate. Not all of that investment income gets paid out. The fund sets aside reserves to cover weaker years and to ensure it can always meet the minimum guaranteed by law for Simpanan Konvensional members.
One thing that affects your dividend is when your contributions go in. Money contributed in September, for example, only earns dividends for three months of that year, not the full twelve. So the earlier your contributions go in, the more you earn for that year.
The proposed rate goes through a formal approval process before declaration. EPF management proposes the rate, which requires the Minister of Finance's endorsement before going to the EPF Board for final approval.
How Simpanan Shariah Works And How The Rate Compares
Simpanan Shariah registration opened on 8 August 2016. From January 2017, savings in Simpanan Shariah have been managed and invested under Shariah principles, using contracts that exclude alcohol, gambling, and interest-bearing instruments.
The Shariah rate has generally tracked Simpanan Konvensional since 2017, though the gap between the two has varied from year to year. In 2022, it was 0.60 percentage points wide, with Simpanan Konvensional at 5.35% and Simpanan Shariah at 4.75%, due to differences in how the two portfolios performed that year. By 2024 and 2025, both delivered the same rate.
Unlike Simpanan Konvensional, which is guaranteed by law to pay at least 2.5% a year, Simpanan Shariah carries no such protection. In a bad year, the rate could come in below 2.5%.
EPF Account Structure Since May 2024
From 11 May 2024, all EPF members under 55 had their accounts restructured from two accounts to three:
| Now | Was | Purpose | Contribution allocation |
| Akaun Persaraan | Account 1 | Long-term retirement savings | 75% |
| Akaun Sejahtera | Account 2 | Pre-retirement needs (housing, education, health, takaful, Hajj) | 15% |
| Akaun Fleksibel | New | Short-term financial needs; withdrawable at any time (minimum RM50) | 10% |
All three accounts earn dividends at the same declared rate. The restructuring changed how contributions are split, not how dividends are calculated. Members aged 55 and above retain the previous structure (Akaun 55 and Akaun Emas) and were not affected by the May 2024 changes. For a full breakdown of how each account works and what you can withdraw from each, read our guide to EPF accounts.
Is EPF Enough For Retirement?
Probably not on its own. The EPF's Retirement Income Adequacy (RIA) framework, launched in December 2024, aims for members to have at least RM390,000 saved by age 60, up from the current RM240,000 target. As of October 2024, only 36% of active EPF members hit even that lower figure.
The fund's returns are not the problem. Most members simply are not saving enough, are withdrawing too much before retirement, or both. The table below shows three things worth checking in i-Akaun:
| Check | How to do it | What to look for |
| Current balance vs. RIA target | Log in to i-Akaun or the KWSP app | Compare your Akaun Persaraan balance against the RIA savings schedule by age |
| Contribution trajectory | Check your annual EPF statement | Are contributions growing year on year? Any gaps from self-employment or career breaks? |
| Withdrawal history | i-Akaun → Withdrawal History | How much has been taken out for housing or education, and does your remaining balance still track? |
If you want to put in more than the mandatory amount, voluntary contributions are an option, particularly if you are self-employed or have income outside standard payroll.
Beyond EPF, Private Retirement Schemes (PRS) carry some investment risk but offer higher potential returns, while fixed deposits and high-interest savings accounts are more predictable. You can also check if your EPF savings are on track to see where you stand.
Frequently Asked Questions
What is the EPF dividend rate for 2025?
The EPF declared 6.15% for both Simpanan Konvensional and Simpanan Shariah for 2025. The total payout was RM79.6 billion. A member with RM50,000 in their account at the start of 2025 would receive approximately RM3,075 in dividends for the year.
What is the minimum EPF dividend rate?
The statutory minimum under Section 27 of the EPF Act 1991 is 2.5% per year, and applies only to Simpanan Konvensional. The EPF is legally required to pay at least this rate on conventional savings regardless of investment performance. Simpanan Shariah has no guaranteed minimum.
When does EPF declare the annual dividend?
The EPF declares the previous year's dividend in the first quarter of the following year, around February or March. The 2025 dividend was declared in February 2026. Dividends are credited to member accounts shortly after the announcement.
Does the same dividend rate apply to all three EPF accounts?
Yes. Akaun Persaraan, Akaun Sejahtera, and Akaun Fleksibel all earn dividends at the same declared rate. The account split affects what you can withdraw, not what you earn.
Do Simpanan Shariah savings have a minimum dividend guarantee?
No. Unlike Simpanan Konvensional, Simpanan Shariah has no guaranteed minimum. In 2022, that meant a rate 0.60 percentage points below the conventional rate.
Is the EPF dividend taxable in Malaysia?
No. EPF dividends are exempt from income tax. Budget 2025 introduced a 2% tax on individual dividend income exceeding RM100,000 per year, which caused some confusion. LHDN confirmed in March 2026 that EPF dividends are excluded from this tax entirely. They do not count towards the RM100,000 threshold and do not need to be declared in your tax return.
How is the EPF dividend credited to my account?
Dividends are credited to each account based on the balance held during the year. You can view the credited amount via i-Akaun or the KWSP app, usually within a few days of the declaration date. If your balance looks lower than expected, withdrawals during the year will have reduced what you earned.
What was the highest EPF dividend rate between 2013 and 2025?
6.90% for Simpanan Konvensional in 2017, the highest since 1996, followed by 6.75% in 2014. Both years saw strong performance in global equity markets.
