The Employee Provident Fund (EPF)’s dividend announcement has been a buzzing topic in recent weeks.
On 1 March 2025, EPF declared a dividend of 6.30% for both conventional savings and Shariah savings, with a total payout of RM73 billion for 2024. This is significantly higher than the dividend rates of 5.50% and 5.40% for conventional and Shariah savings in 2023.
Ahead of the announcement, Finance Minister II Datuk Seri Amir Hamzah Azizan had hinted at higher dividends on the back of recovering global and domestic markets, resilient economic growth, and sound portfolio management that aims to reinforce the long-term financial security of Malaysians.
Although EPF had just delivered one of the highest payouts in recent years, it is not the highest in the history of EPF dividend rates. Here’s how EPF rates have changed since it was first introduced in 1951.
Past EPF Dividend Rates
There are two types of EPF savings, which are Conventional Savings and Shariah Savings. Conventional Savings invests in a mix of Shariah-compliant and non-compliant assets and financial instruments.
Introduced later in 2017, Shariah Savings becomes available to members. It invests solely in Shariah-compliant assets regulated by the Shariah Governance Framework and subject to approval from the EPF Shariah Advisory Committee.
For Conventional Savings, it has a minimum dividend rate of 2.50% per annum. The dividend rates for Shariah Savings will be based on actual performance of the shariah-compliant investments.
The following are the dividend rates for Conventional Savings and Shariah Savings from 1952 to 2024.
| Year | Conventional savings per annum (%) | Shariah savings per annum (%) |
| 2024 | 6.30 | 6.30 |
| 2023 | 5.50 | 5.40 |
| 2022 | 5.35 | 4.75 |
| 2021 | 6.10 | 5.65 |
| 2020 | 5.20 | 4.90 |
| 2019 | 5.45 | 5.00 |
| 2018 | 6.15 | 5.90 |
| 2017 | 6.90 | 6.40 |
| 2016 | 5.70 | – |
| 2015 | 6.40 | – |
| 2014 | 6.75 | – |
| 2013 | 6.35 | – |
| 2012 | 6.15 | – |
| 2011 | 6.00 | – |
| 2010 | 5.80 | – |
| 2009 | 5.65 | – |
| 2008 | 4.50 | – |
| 2007 | 5.80 | – |
| 2006 | 5.15 | – |
| 2005 | 5.00 | – |
| 2004 | 4.75 | – |
| 2003 | 4.50 | – |
| 2002 | 4.25 | – |
| 2001 | 5.00 | – |
| 2000 | 6.00 | – |
| 1999 | 6.84 | – |
| 1997-1998 | 6.70 | – |
| 1996 | 7.70 | – |
| 1995 | 7.50 | – |
| 1988-1994 | 8.00 | – |
| 1983-1987 | 8.50 | – |
| 1980-1982 | 8.00 | – |
| 1979 | 7.25 | – |
| 1976-1978 | 7.00 | – |
| 1974-1975 | 6.60 | – |
| 1972-1973 | 5.85 | – |
| 1971 | 5.80 | – |
| 1968-1970 | 5.75 | – |
| 1965-1967 | 5.50 | – |
| 1964 | 5.25 | – |
| 1963 | 5.00 | – |
| 1960-1962 | 4.00 | – |
| 1952-1959 | 2.50 | – |
Source: EPF
Although EPF offers a minimum guaranteed dividend of 2.5% for Conventional Savings, we can observe that it has managed to deliver above the minimum dividend rate since 1960. For Conventional Savings, the EPF dividend rate was highest at 8.50% from 1983-1987.
In 2017, Shariah Savings was introduced, with the dividend rate being the highest at 6.40% on its debut year.
We can also take a look at the milestones of EPF to see the difference in contribution rates throughout the years.
1951
One of the oldest retirement funds in the world, EPF was established under the EPF Ordinance 1951 and initially placed under the National Director of Posts. It mandated employees and employers with a workforce of five or more persons to make a 5% even monthly contribution respectively.
Upon EPF’s launch in 1952, it delivered a dividend rate of 2.50% p.a. from 1952 to 1959.
1958
EPF Board took over the administration of the provident fund from the National Director of Posts. Under the Ministry of Finance, the EPF board now consists of a chairman, government representatives, employer representatives, employee representatives and the Chief Executive Chairman (CEO).
1968
EPF may have started as the primary retirement fund for Malaysians, but has evolved throughout the years to help Malaysians pay for their housing and healthcare needs.
In 1968, EPF allows for the withdrawal of one-third of a member’s savings upon reaching age 50, to assist in purchasing a house and preparing for retirement.
1975
Contribution rates were increased and different for employees and for employers at 6% and 7%.
1980
Contribution rates were raised again to 9% for employees and 11% for employers. Self-employed individuals can also start contributing to EPF.
EPF recorded its largest dividends at 8.5% between 1983 and 1987 at a time when interest rates were higher.
1993
Contribution rates were raised for employees and employers at 10% and 12% respectively.
1996
Launch of Members Investment Scheme, which allows members with more than RM55,000 in EPF Account 1 to invest in unit trusts through approved Fund Management Institutions appointed by the Securities Commission.
Contribution rates were raised to 11% for employees.
2000
EPF expands to cover education costs via the Education Withdrawal Scheme. Members can withdraw their savings in Wellbeing Account to fund education of their spouse or children at approved institutions both locally and abroad.
2001 – 2004
Employees’ contribution rates were lowered several times during this period. In 2001, it was first lowered to 9%, and then increased back to 11% in 2002. In 2003, it was reduced to 9% before it was raised again to 11% in 2004.
In the past, the government temporarily lowered employee contribution rates as part of its economic stimulus package. By lowering the contribution rates, people have more money to spend and reinvigorate the economy.
2007
The Flexible Age 55 Withdrawal scheme was introduced. In addition, EPF members with savings in excess of RM1 million can withdraw their savings.
2008
EPF sets basic savings targets for different age groups with the aim of helping members accumulate at least RM120,000 by age 55.
2009
Following the global financial crisis, the government had introduced an economy stimulus package that allowed employees to voluntarily lower their contribution rate from 11% to 8% for two years.
2011
EPF extended the list of critical illnesses under the Health Withdrawal from 39 illnesses to 55, and permitted members to purchase medical support equipment using their savings.
Contribution rates for employees were increased back to 11%.
2012
Contribution rates were set at 11% for employees with income less than RM5,000 and 13% for employers. For employees with income more than RM5,000, contribution rates were set at 11% for employees and 12% for employers, which have remained the same till present time.
2014
EPF raised basic savings level to RM196,800 as the minimum amount members should have in their EPF accounts when they reach age 55.
2016
Launch of Shariah Savings and members can register to have their savings managed according to Shariah principles.
2018
Women registered in the National Poverty Data Bank now have the option to contribute to EPF i-Suri and receive a government incentive of 50% for every ringgit contributed, capped at RM300 a year.
2020
Following the Covid-19 economic fallout, the government decided to lower the mandatory contribution rate for employees from 11% to 7% from April to December 2020 as part of its stimulus package.
2024
In addition to the Retirement Account and Wellbeing Account, the government introduced a third EPF account known as the Flexible Account. The EPF accounts were restructured whereby 75% of contributions will be channeled into the Retirement Account. The remaining 15% and 10% of contributions will go into the Wellbeing Account and Flexible Account. Members can withdraw savings from the Flexible Account at any time. They can dip into their Wellbeing Account for medical expenses, education and home purchase. Savings in the Retirement Account remain untouched until the age of 55.
Read Also: How Much Do Malaysians Have In EPF Savings?
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