Report: EPF Expected To Declare Dividend Above 5.8% For 2024

The Employees Provident Fund (EPF) is expected to declare a dividend exceeding 5.8% for conventional savings in 2024, slightly higher than the 5.5% announced for 2023, FMT reported.

For shariah savings, the dividend is projected to be between 5.4% and 5.6%, according to an industry source. In 2022, the EPF declared a 5.4% dividend for shariah accounts.

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Highest in three years

The source from FMT described the estimated figures as a “safe bet,” with the official announcement expected in early March. 

EPF typically announces its annual dividend between late February and early March, based on its financial performance for the previous year.

In 2023, the announcement was made on March 4, while in 2022, it was declared on March 11.

If confirmed, this could be the highest dividend in three years. The 10-year average stands at 6%, and whatever the case, it will be significantly higher than last year,” the source told FMT.

I-Saraan attracted over RM13 billion in deposits

Meanwhile, EPF’s voluntary contribution schemes, including i-Saraan and Top-Up Savings, attracted around RM13 billion in deposits last year.

According to EPF, members under the Top-Up Savings scheme can contribute up to RM100,000 annually to their accounts.

In the first half of 2024, the number of voluntary contributors surged by 39% year-on-year, reaching 742,556 members.

Additionally, an EPF official revealed that 70% of members have not withdrawn from their recently introduced Account 3, which allows flexible withdrawals at any time.

The official also noted that about 3 million members aged 55 and above, who are eligible to withdraw their entire savings, have opted to keep their money in EPF for better returns and financial security.

As of now, EPF has over 15 million members, with approximately 8.5 million active contributors.