For all your contributions, the government guarantees a minimum paid dividend rate of 2.50% for Simpanan Konvensional. Dividend rates for Simpanan Shariah will be based on actual performance of the EPF's shariah compliant investments.


The EPF invests in a diverse portfolio to ensure that members receive dividends yearly. The following are the asset classes that the EPF invests in to generate revenue:

  • Fixed Income
  • Equity
  • Real Estate and Infrastructure
  • Money Market


The EPF guarantees a minimum 2.5% dividend through approved investments to ensure your savings are secured (Simpanan Konvensional).

An Annual Dividend payout is credited based on your savings as at 1 January yearly. Your dividends are calculated based on your daily aggregate balance.

Whereas your monthly contributions will earn dividends based on:

  1. A day in the month of said contribution
  2. Said month's contribution will earn dividends based on the daily calculation starting the following month until the end of December of that year

Member's Benefits

Member - Overview - Tax Benefits Accordion (EN)

Frequently Asked Questions


EPF Dividend

Frequently Asked Question

Member Overview - Dividend - FAQ (EN)

What is the dividend rate 2023 for Simpanan Konvensional (SK) and Simpanan Shariah (SS)?

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  • Simpanan Konvensional (SK): 5.50%
  • Simpanan Shariah (SS): 5.40%

What are the yearly dividend rates declared by the EPF?

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What is the total payout for 2023 dividend?

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  • Total dividend payout for 2023: RM57.81 billion
  • Total payout for SK: RM50.33 billion
  • Total payout for SS: RM7.48 billion

Why is there a difference between the dividend rates declared for Simpanan Konvensional (SK) and Simpanan Shariah (SS)?

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The dividend rate for Simpanan Shariah and Simpanan Konvensional is different as dividends are declared depending on the actual investment performance of the respective funds.

How is the EPF dividend different from other funds (LTAT, LTH, ASB and other Fund Managers Institutions)?

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The accounting policy and method of calculating the EPF’s dividend is different than that of other institutions. The comparison of dividend rates between the EPF’s and that of other funds is not based on an “apple-to-apple” comparison as the objectives, strategies and investment risks of each fund is different. The EPF is a retirement savings fund responsible for ensuring members’ retirement well-being.

Therefore, the EPF practices prudent investment strategy with greater emphasis on preserving capital and providing long-term stable returns supported by a comprehensive investment risk management framework. Given the EPF’s level of risk tolerance, the EPF’s dividend has exceeded its strategic target of delivering dividend of at least 2 percent above inflation on a rolling 3- year basis.Members who have been investing with us for the past three years have enjoyed a rolling 3 years real dividend of 3.51% (SS) and 3.67%(SK) respectively.

Can members, regardless of age, withdraw dividends from their EPF savings?

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No, there is no provision under the EPF Act 1991 that allows for dividend withdrawal regardless of age. Withdrawal of dividends is only applicable to eligible members above Age 55.

How can I check if the dividend has been credited into my EPF account?

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Members may obtain their statement through i-Akaun, EPF Kiosks or any EPF counters nationwide. Members can also check their EPF account by downloading KWSP i-Akaun mobile application from Google Play, Apple App Store or Huawei App Gallery.

How is the EPF dividend rate calculated?

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The dividend is calculated based on the “Modified Aggregate Daily Balance”. Contributions for a particular month will be eligible for dividend based on the last day of the contribution month until 31st December 2023.

The following is an example of the Annual Dividend calculation based on Aggregate Balance, assuming the dividend rate is 5%:

What is a nominal dividend rate?

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A nominal dividend rate is the declared rate which is used in the calculation of dividend payment to members' accounts.

What is the dividend rate guaranteed by the EPF?

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Under Section 27 of the EPF Act 1991, the guaranteed minimum dividend rate is 2.5% per year on members' savings. As such, members are guaranteed to receive the minimum dividend rate in any situation.

However, the dividend rate for Simpanan Shariah is based on the actual performance of shariah-compliant investment without any minimum guaranteed dividend of 2.5%

What is a real dividend rate?

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Real dividend rate is calculated by subtracting the inflation rate from the nominal dividend rate.

Who decides/ approves the dividend rate?

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The rate of dividend is proposed by the EPF Management to the EPF Board. Following endorsement by the EPF Board, the Minister of Finance's approval is sought before the dividend rate is declared.

When is the dividend declared each year?

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Dividends will be declared by the EPF Board with the approval of the Minister of Finance after the end of the financial year. The exact date of declaration will be determined by the EPF Board.

EPF Investment

Frequently Asked Question

Member Overview - Know Your Benefits - Investment FAQ

Will SK have to dispose all Shariah-compliant assets and only invest in non-Shariah compliant assets?

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No, savings in SK will continue to be invested in both Shariah and non-Shariah assets. SK will continue to adopt the Environmental, Social and Governance (ESG) principles as extension to EPF’s current investment practices, which includes the practice of ethical and responsible investing.

What happens to all the proceeds generated from the selling of EPF’s overseas properties?

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Similar to any other assets held by the EPF, the proceeds from the sale of an asset is reinvested into other assets that meet the EPF’s investment criteria. The profit derived from the sale is distributed to members as dividend.

The EPF has been giving out loans/ financing to the government. What happens to members’ savings if the government defaults in its payments?

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Investment exposures to the government are categorised as risk-free, as the principal and coupons are guaranteed by the government. There has never been a default in payment by the government.

Members’ savings are safe. All investments by the EPF are in accordance with the EPF Act 1991 and approved Strategic Asset Allocation. The EPF also practices strict corporate governance. All investments go through a stringent and disciplined screening process, and are subject to a quarterly audit by internal auditors and an annual audit by the Auditor-General.

Are all loans/ financing given by EPF guaranteed?

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The majority of loans/ financing provided by EPF are guaranteed either by the Federal Government, the State Government, banks, or through assets, shares or properties. Although there are EPF loans/ financing  non-guaranteed, the decision to invest in that particular loan/ financing is based on several criteria including safety, viability, risk control as well as returns. To date, these types of loans/ financing experienced no problem in meeting its financial obligations.

Has the EPF fund been used to rescue selected companies?

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The EPF's investment philosophy is "prudence" in carrying out the trust placed on them to safeguard EPF members' funds from investment loss risks.  EPF investments are carried out based on strict, comprehensive policies and guidelines and investment approvals are made by the EPF Investment Panel which possesses the expertise and high integrity. In line with that philosophy, EPF funds have never been used to rescue any selected companies as EPF investments are only made based on tight guidelines approved by the EPF Investment Panels including property in order to obtain returns on the investments.

How are investment decisions made?

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​​​​​​Investment decisions are made through due diligence process which ensures EPF members interests are protected by the EPF Investment Panel. Shariah endorsement shall be obtained from Shariah Advisory Committee of EPF (SAC) for any Shariah-compliant investment to be made under Shariah portfolio.

Where are members' savings invested?

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Members' savings are invested in various investment instruments as follows:

  • Malaysian Government Securities and Government Investment Issues (GII)
  • Corporate Loans/Financing, debentures, bonds and sukuk
  • Shares Money market
  • Property

Who implements the investment transactions?

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Investment transactions are implemented by officers who have been granted the power to do so under the Delegation of Board Powers to the Chief Executive Officer and Board Officials.

What are Government Bonds or Malaysian Government Securities?

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Government bonds or Malaysian Government Securities include:

  • Loans guaranteed fully by the Federal Government;
  • Bank Negara Malaysia papers with a maturity period of at least three years from the date of issue;
  • any commercial instruments (with elements of negotiability) issued by the State Government or local authorities with a maturity period of at least three years from the date of issue; and
  • any deposits in advance subscription account under section 26(1)(a)(i)

What is meant by equities?

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Equities are shares issued by companies listed on the stock exchange as well as shares which are not listed on the stock exchange.

What are EPF's investment guidelines?

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EPF investments are carried out based on guidelines that were approved by the EPF Investment Panel as well as the Minister of Finance in selected cases.

Who is responsible for the EPF's investment policies?

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The EPF Investment Panel is responsible to approve EPF's investment policies.

Who approves each investment proposal?

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Each investment proposal will be tabled to the EPF Investment Panel for approval.

Who sits on the Investment Panel and who appoints them?

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The EPF Investment Panel comprises:

  • The EPF Chairman
  • Representative from Bank Negara Malaysia
  • Representative from the Ministry of Finance
  • Three professionals from the private sector with wide experience in the areas of finance, trade or other relevant areas
  • Chief Executive Officer as Ex-Officio member.
  • The members of the EPF Investment Panel are appointed by the Minister of Finance.

Does EPF pay tithe on its investment/ savings?

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EPF does not pay tithe on its investments/ savings.

Are EPF's investments taxable?

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​​​​​EPF's investments in Malaysia are exempted from tax.

What are EPF's investments in national infrastructure?

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EPF is directly involved in financing national infrastructure projects to provide facilities and amenities to the public such as the Kuala Lumpur International Airport in Sepang, Independent Power Producers projects, highways and Light Rail Transit System (STAR and PUTRA).

What is the difference in EPF's current asset allocation compared with the previous years?

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Looking at the trend for the past 10 years, it is clear that EPF's asset allocation has undergone several changes particularly in investment in MGS. Investment in this instrument experienced a sharp decline due to lesser new issuance by the Government. As such, the EPF funds had to be invested in other asset classes such as loans, money market instruments, equities and property.

For example, investment in MGS in 1995 accounted for 40.94% of total investment during the year. In contrast, investment in MGS up to 31 March 2005 made up only 39.21% of the overall investment. Apart from that, EPF has increased its investment in the equity sector from only RM10.5 billion in 1995 to RM46.87 billion up to 31 March 2005.

How does EPF consider each investment proposal?

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In considering any investment proposal, first, an in-depth study is carried out on the company which has the potential to be invested in. A due diligence exercise will be carried out to determine that the company is strong in terms of financial standing. Information regarding its shareholders and purpose of seeking the financing will also be required prior to presenting it to the Investment Panel. Subsequently, the Investment Panel will thoroughly assess the proposal before the investment approval is given.

How does EPF ensure the safety of its investments?

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As the agency entrusted with its members' savings, EPF maintains a prudent investment policy whereby risks and returns are carefully considered to provide a correct balance to ensure the safety of its members' investment. In-depth studies will be undertaken prior to EPF implementing any type of investment. Investment analysts with the relevant professional qualifications will study in detail the companies which have potential to be invested in. The EPF Management Investment Committee will thoroughly review each investment proposal prior to presenting it to the Investment Panel. The EPF Investment Panel will in turn undertake a detailed assessment of the proposals before approvals are granted.

What is meant by money market instrument?

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Money market instruments are papers which can be traded in the money market. They include:

  • Negotiable Certificate of Deposits
  • Bankers Acceptances
  • Repo
  • Commercial Papers
  • Cagamas Notes

What are loans/ financing and debentures?

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Loans/ financing are debt instrument which involve a lender/ financier and a borrower/customer, used to finance specific purposes whereby the rate of interest/ profit charges are agreed by both parties for a certain period. Loans/ financing are offered with or without collateral.

Debentures are debt security instruments issued by any company as proof of the debt or as security for the total fixed loan/ financing. Debentures include stock debentures, bonds and other securities of the borrower/ customer regardless of whether it has or has not any charge on the borrower/ customer's asset. Debentures usually provide charge on the borrower/ customer 's asset or in the form of security.

How is the investment returns distributed to members?

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Returns on investments are distributed to members via the annual dividend payments.