For Simpanan Konvensional, the government guarantees a minimum paid dividend rate of 2.50%. Nevertheless, the actual dividend rates for Simpanan Konvensional will be based on actual performance of the EPF's conventional investments. For Simpanan Shariah, the dividend rates will be based on actual performance of the EPF's syariah-compliant investments.

Your 2023 annual statement and dividend information are available now on KWSP i‑Akaun.
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EPF Dividend Rate

Year

2023

Year 

2023

5.50%

Simpanan 
Konvensional

5.40%

Simpanan 
Shariah

Our Past Dividend Rates

Year Simpanan Konvensional (Per Annum) Simpanan Shariah (Per Annum)

Dividend Declaration & Statement 

Dividend-Declaration & Statement Accordion

Why is there a difference in the dividend rate between Simpanan Konvensional and Simpanan Shariah?

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Between 2017-2023:

The difference in dividend rates between Simpanan Shariah (SS) and Simpanan Konvensional (SK) stems from their distinct income sources. SS relies solely on its portion of the Shariah portfolio, while SK's income is generated from both Shariah and Conventional portfolios. The sharing of Shariah income between SK and SS follows the Shariah Income Ration (SIR) policy, consistently applied since 2017.


 

From 2024 onwards: 

In January 2024, the EPF took a strategic step to split the Shariah portfolio into separate SS and SK portfolios. This decision aimed to optimise each portfolio's returns independently, aligning with their unique strategies. Moreover, it ensures diversification across asset classes, markets, countries, and currencies for sustainable returns. 


Can members who have switched to Simpanan Shariah cancel their registration and switch back to Simpanan Konvensional?

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Once the Simpanan Shariah account becomes effective, members are not allowed to switch back to Simpanan Konvensional. However, it is possible to do so before the effective date of the Simpanan Shariah account. 

Further information on Simpanan Shariah can be obtained through EPF website via two (2) following links: 

(i)   https://www.kwsp.gov.my/member/account-centre/simpanan-shariah and;
(ii)  https://secure.kwsp.gov.my/ShariahResource/Simpanan_Shariah_bm_FA.pdf 


Dividend Crediting

Dividend- Crediting

How can members access their 2023 Member Statement?

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The 2023 Member Statement can be accessed via i-Akaun (Member) either in web version or mobile app, Self Service Terminals (SST) and counters at EPF Offices. The list of EPF Offices and SST can be obtained at https://www.kwsp.gov.my/corporate/connect-with-us

Members are encouraged to download their 2023 Member Statement online via i-Akaun (Member). References for the i-Akaun registration guide can be obtained at https://www.kwsp.gov.my/documents/d/guest/e-kyc-via-kwsp-i-akaun_v6


When can members check their 2023 dividend amount?

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Members can check the 2023 dividend amount in their 2023 Member Statement after the dividend declaration by the EPF.


How can members residing overseas obtain their Member Statement?

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Members residing overseas can obtain their Member Statement by logging in to their i-Akaun (Member) via web or mobile app. 

If the member is unable to do so, they may obtain their Member Statement by contacting the EPF Contact Management Centre at +603-89226000 or by submitting a request through https://www.kwsp.gov.my/corporate/connect-with-us


Dividend Payment Concept

Dividend-Dividend Payment Concept Accordion

How are dividends paid to members who made Pre-Retirement Withdrawal & Age 55/60 Withdrawal (Combination Option) withdrawals in 2023?

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(a) For members who have made pre-retirement withdrawals in 2023 (such as Housing, Age 50, Education, Health, Hajj, Member Investment and Withdrawals in Excess of RM1 Million):

(i) The dividend on the amount withdrawn will be credited into the members’ EPF account after the crediting of 2023 dividend.


(b) For members who have made Age 55/60 Withdrawal (Combination Option):
(i) For members who have made Age 55/60 Withdrawals and opted for partial payments, the dividend on the amount withdrawn is as indicated in (1)(a)(i).
(ii) For members who have made Age 55/60 Withdrawals and opted for monthly payments, the dividend on the amount withdrawn will be credited into the member’s bank account after the crediting of 2023 dividend.


How is the dividend calculated for FULL Withdrawal (Age 55/60, Incapacitation and Death) before the crediting of the 2023 Annual Dividend? Are members eligible for the 2023 Annual Dividend?

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Dividend is calculated based on two different periods as outlined in (a) and (b) below:
(a) Withdrawal payment has been made after the crediting of dividend year 2022 until 31 December 2023

Members who made withdrawals during this period will be paid the full dividend based on 2022 dividend rate and payment is final.


(b) Withdrawal payment BEFORE the 2023 Annual Dividend is credited (1 January 2024 until the date before the crediting of 2023 dividend)
(i) An interim dividend of 2.50% will be paid together with the withdrawal payment for members who made withdrawals from 1 January 2024 up until the crediting date of the 2023 Annual Dividend.

(ii) The remaining dividend balance (difference between interim dividend and actual dividend rate) will be paid within one week after the crediting of 2023 dividend.


How is the dividend calculated for FULL Withdrawal (Leaving the Country) before the crediting of 2023 Annual Dividend?

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Members who made Leaving Country Withdrawals before the crediting of 2023 Annual Dividend, members will be paid the full dividend based on the last dividend rate declared and the dividend payment is final. 


How is the dividend calculated for members who plan to make FULL Withdrawal (Age 55/60, Incapacitation, Death and Leaving the Country) after the crediting of 2023 Dividend?

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Members who plan to make full withdrawal in any category after the crediting of 2023 dividend, the 2023 dividend will be credited into their account on the dividend crediting date. 


When withdrawals are made in 2024, they are eligible to receive withdrawal payments together with dividends at the rate of 2023 based on the savings period in the EPF account. 


Are contributions for i-Suri, i-Saraan and Self-Contribution eligible for dividend?

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Yes. All contributions stated are eligible for dividend based on the contribution month. 


Are members who have applied for FULL Withdrawal (Pensionable Employees Withdrawal (SPPB) and Optional Retirement Withdrawal (SPP)) before the dividend crediting in 2023 eligible for the dividend 2023?

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Dividend is calculated based on two different periods as outlined in (a) and (b) below:

(a) Withdrawal payment made after the crediting of dividend year 2022 until 31 December 2023  

Members who made withdrawals during this period will be paid the full dividend based on 2022 dividend rate and payment is final.

(b) Withdrawal payment BEFORE the 2023 Annual Dividend is credited (1 January 2024 until the date before the crediting of 2023 dividend) 

(i) An interim dividend of 2.50% will be paid (together with the withdrawal payment).

(ii) The remaining dividend balance (difference between interim dividend and actual dividend rate) will be paid within one week after the crediting of 2023.

(iii) The remaining dividend balance (supplementary dividend) of SPPB/SPP Withdrawal will be paid into the member’s bank account and/or Kumpulan Wang Persaraan (Diperbadankan), or KWAP, without the need for them to reapply.


Purification of Dividend for Muslim Members

PURIFICATION OF DIVIDENDS FOR MUSLIM MEMBERS - Accordion

I am a Muslim and have not switched to Simpanan Shariah. What is the status of the dividends that I have received and do I need to purify the dividends?

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Members who have not switched to Simpanan Shariah will have their savings managed under Simpanan Konvensional. The annual dividends received under Simpanan Konvensional are derived from mixed investments, which include both syariah-compliant and conventional investments. Dividends derived from conventional investments must be purified and cleansed, as stated in the 87th Muzakarah (Conference) of the Fatwa Committee National Council of Islamic Religious Affairs Malaysia held on June 23-25, 2009:


“In Islam, property obtained through Shariah non-compliant means, such as usury, ambiguous transactions, gambling, fraud, robbery, plunder, corruption, etc., is considered illegal and cannot be used for personal gain. Such property must be purified using one of the following methods: 


(a) it can be channeled to Baitulmal for the general public interest of Muslims, such as funding the construction or maintenance of bridges, roads, toilets, etc.; or 


(b) it can be given to the poor and needy.”


The decision to purify the dividend is at the discretion of individual members themselves. Members are advised to seek the views of the Islamic Religious Council in their respective states.
 

Note: The original Fatwa can be referred to via e-Sumber Maklumat Fatwa Jabatan Kemajuan Islam Malaysia (JAKIM) at the following link: JAKIM : E-SMAF V1 (islam.gov.my)

I have switched to Simpanan Shariah in 2023. Why am I still receiving Simpanan Konvensional dividends?

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For members who have switched to Simpanan Shariah in 2023 from 1 January 2023 until 24 December 2023, or between 25 – 31 December 2023, the switching will only take effect on 1 January 2024 and 1 January 2025 respectively. 

 

Therefore, for 2023 dividend, members account will still receive dividends from Simpanan Konvensional.


I just switched to Simpanan Shariah. Do I need to purify the Simpanan Konvensional dividends credited to my account for previous years?

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The 87th Muzakarah (Conference) of the Fatwa Committee National Council of Islamic Religious Affairs Malaysia held on June 23-25, 2009 has resolved that:


“In Islam, property obtained through syariah non-compliant means, such as usury, ambiguous transactions, gambling, fraud, robbery, plunder, corruption, etc., is considered illegal and cannot be used for personal gain. Such property must be purified”. 


Dividends derived from conventional investments are considered as a form of property obtained through syariah non-compliant means.

 

Note: The original fatwa can be referred to via e-Sumber Maklumat Fatwa Jabatan Kemajuan Islam Malaysia (JAKIM) via the following link: JAKIM : E-SMAF V1 (islam.gov.my)

 

Since the member has just switched to Simpanan Shariah, the purification of dividends will only apply to the dividends received under Simpanan Konvesional prior to switching to Simpanan Shariah.

 

Example, if a member registered with the EPF in 2017, and only switched to Simpanan Shariah in 2023, the purification of dividends only apply to the dividends received from 2017 until 2022.


Dividend purification can be done either by using EPF savings that is eligible for withdrawal (if any) or using other financial resources owned by the member.


The decision to purify the dividend is at the discretion of individual members themselves. Members are advised to seek the views of the Islamic Religious Council in their respective states.


DIVIDEND PURIFICATION IS EXEMPTED IN THESE CONDITIONS:
1.    Any dividends received before Simpanan Shariah was introduced in 2016 are not subject to dividend purification as the EPF Shariah Advisory Committee (SAC) has resolved that members did not have Haq Tasarruf, which is the right to choose to have their savings managed in according to syariah principles (no option for syariah-compliant account).

2.    The 2023 Simpanan Konvensional dividend is exempted from purification for members who have switched to Simpanan Shariah in 2022 or 2023, with effective date on 1 January 2024 or 1 January 2025, as the EPF Shariah Advisory Council (SAC) is of the view that the effective date of Simpanan Shariah as determined by the EPF’s policy is beyond the members’ control. 
 


How to determine the amount of Simpanan Konvensional dividends that needs to be purified?

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The purification rate for 2023 Simpanan Konvensional dividend is 66% of the total dividend credited into the member’s account. Meanwhile, the historical purification rate prior to the 2023 dividend can be referred to the following table:

Year Total Purification of Dividends [%]
2022 73%
2021 69%
2020 69%
2019 71%
2018 68%
2017 64%
2016 -

 

Calculation Example

Total 2023 Simpanan Konvensional dividends: RM1,000


Total dividend to be cleansed/purified: RM1,000 x 66% = RM660


I have paid zakat on EPF savings, do I still need to purify my Simpanan Konvensional dividend?

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Payment of zakat and purification of dividends are two separate matters.


Zakat is levied on halal property that meets the conditions of mandatory zakat, while purification is done on property obtained through syariah non-compliant means that cannot be used and must be given to Baitulmal or to the poor and needy.


In regards to EPF savings, if a member has not switched to Simpanan Shariah, the dividends earned from syariah non-compliant investment will form part of the member’s EPF savings. Muslim members are advised to separate their savings from the amount that needs to be purified according to the rate of dividend purification each year before determining the amount of savings that are subject to zakat.
 


I am a Government servant who has opted for the Public Service Pension Scheme and have made withdrawals under the Pensionable Employees Withdrawal Scheme. Do I need to purify the Government Share dividends that have been channeled to KWAP?

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Muslim members do not need to purify the Government Share dividends that have been channeled to KWAP.


Members are only responsible for purifying their Simpanan Konvensional dividends (Employee Share) that have been paid to the members (if any), subject to the details explained in Question No. 3 above.


Members can seek advice at any EPF Branches to calculate the amount for purification as well as the dividend channeled to KWAP in accordance with the Employer and Member Contributions ratio based on the relevant EPF annual statements.


Why does only 66% of the 2023 Simpanan Konvensional dividend needs to be purified?

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The Simpanan Konvensional dividend credited into members account is generated from two (2) investment portfolios, namely the Shariah Portfolio and the Conventional (non-syariah) Portfolio. 


The Shariah Portfolio is an investment portfolio that consists of syariah-compliant assets and instruments managed according to Shariah principles and approved by the EPF’s Shariah Advisory Committee (SAC). 


The Conventional Portfolio is an investment portfolio managed conventionally that consists of syariah non-compliant assets and instruments. Only dividends generated from the Conventional Portfolio need to be purified.