Following the dividend announcement by the Employees Provident Fund (EPF), many members have been asking:
- How are dividends calculated for Akaun Fleksibel?
- Does withdrawing from this account affect the dividends I receive?
Here’s a clear breakdown of how it works.
EPF account structure: A quick recap
Akaun Fleksibel was introduced on 11 May 2024 as part of EPF’s account restructuring. Contributions are now distributed as follows:
- 75% - Akaun Persaraan
- 15% - Akaun Sejahtera
- 10% - Akaun Fleksibel
Akaun Fleksibel is designed to provide members with greater flexibility, allowing withdrawals at any time, subject to EPF terms and conditions.
How are dividends for Akaun Fleksibel calculated?
Dividends are calculated based on the average daily balance in the Akaun Fleksibel from January to December for the respective financial year, taking into account:
- New contributions received
- Withdrawals made during the month
The calculation is based on the Modified Aggregate Daily Balance (MADB) concept. For the 2025 dividend, the calculation period runs from: 1 January 2025 to 31 December 2025.
There are two essential rules to keep in mind:
1. Contribution effective date:
- Contributions credited within a given month will only begin to be counted for dividend calculations on the last day of that month. For example, if you contribute RM100 on 1 January, that amount will only start generating dividends on 31 January. This means that for the month of January, the RM100 contribution will only contribute to dividends for one day. The full daily dividend calculation for that RM100 will only begin in the following month (February).
2. Withdrawal effective date:
- Once savings are withdrawn, the amount will stop generating dividends immediately on the date of withdrawal.
Read also: How To Check Your EPF Dividend Online
How withdrawals affect your dividends
Because dividends are based on daily balances, timing plays a crucial role. See the below scenario:
Scenario A: Consistent savings, no withdrawals
Ali starts 2025 with RM1,000 in his Akaun Fleksibel. Through his monthly contributions, 10% or RM200 is consistently credited into the Akaun Fleksibel.
How are the dividends calculated?
- His initial RM1,000 earns dividends every day of the year.
- Monthly contribution of RM200 will only start earning dividends once credited and will earn dividends for said month on the last day of the month only.
The result: By leaving his money untouched and making no withdrawals, Ali maximises his daily dividends and it helps his savings grow more quickly.
Scenario B: When savings are withdrawn
Ali begins the year 2025 with a balance of RM1,000 in his Akaun Fleksibel. However, he has to withdraw RM800 for an emergency on 20 January, while a new contribution of RM200 credited later will only become effective on 31 January.
Calculation:
- 1 – 19 January: Dividends are calculated based on a RM1,000 balance.
- 20 - 30 January: After withdrawing RM800, dividends are calculated only on the remaining RM200 balance.
- 31 January: A RM200 contribution is credited. Dividends are generated for one day only (ending balance: RM400).
The result: Because Ali withdrew RM800 on 20 January, this amount only earned dividends up to the withdrawal date. As a result, the total amount generating dividends in January was lower than in Scenario A (with a balance of RM1,200), and Ali’s savings grew more slowly with a significantly smaller opening balance for the following month.
Tips to maximise your dividends
Before deciding to withdraw your savings, consider these two aspects to help maximise your dividend amount:
Plan withdrawals wisely
- Since dividends are calculated using the Modified Aggregate Daily Balance (MADB) concept, the longer your savings remain in the account, the higher the total dividend you may receive at the end of the year.
Take advantage of the compounding effect of dividends
- Although the Akaun Fleksibel provides access to cash at any time, allowing your savings to continue growing without making non-urgent withdrawals can help you achieve greater returns over the long term.
Frequently asked questions (FAQ)
1. Can all my dividends be credited into Akaun Fleksibel?
- No. Dividends are calculated based on the Modified Aggregate Daily Balance (MADB) for Akaun Persaraan, Akaun Sejahtera and Akaun Fleksibel and are credited into the respective accounts based on accrual, rather than being concentrated in a single account.
2. Is the dividend calculation method the same for all EPF accounts (Akaun Persaraan, Akaun Sejahtera and Akaun Fleksibel)?
- Yes. The same dividend calculation method is used across all three accounts.
3. Will I still receive dividends if my Akaun Fleksibel balance remains RM0 after making a withdrawal until the end of the year?
- Yes, your Akaun Fleksibel will still receive dividends that have been earned based on the daily balance prior to the withdrawal during that year. However, once the balance becomes RM0 and no new contributions are made, the account will stop generating dividends. As a result, the total dividends credited to your Akaun Fleksibel for that year will be minimal.