EPF Dividend & Its Calculation

EPF has declared 6.35% dividend for year 2013, representing its biggest ever payout at RM31.20 billion.

Besides, its investment assets size has increased from RM342.01bil in 2008 to RM586.66bil in 2013.

Below are historical dividend by EPF since 1980.

Year	Dividend (%)
80-82	8.0
83-87	8.5
88-94	8.0
1995	7.5
1996	7.7
1997	6.7
1998	6.7
1999	6.84
2000	6.0
2001	5.0
2002	4.25
2003	4.5
2004	4.75
2005	5.0
2006	5.15
2007	5.8
2008	4.5
2009	5.65
2010	5.8
2011	6.0
2012	6.15
2013	6.35

If you have RM100,000 balance in your EPF account after year 2013, how much dividend will you get? 

Is it RM100,000 x 6.35% = RM6350 for year 2013?

No, you actually get less than this, because the calculation of dividend is based on daily rest, not on yearly basis.

FORMULA

Pengiraan dividen untuk bulan Januari

Akaun 1	Akaun 2
[(Baki pembuka Akaun 1 x Bil. hari dalam bulan) + (Caruman bulanan semasa x 1 hari)] x Kadar Dividen / 366 hari setahun	[(Baki pembuka Akaun 2 x Bil. hari dalam bulan) + (Caruman bulanan x 1 hari)] x Kadar Dividen / 366 hari setahun

Pengiraan dividen untuk bulan Februari hingga Disember (berdasarkan bilangan hari setiap bulan)

Akaun 1	Akaun 2
[((Baki pembuka Akaun 1 + Semua caruman bulanan sebelumnya) x Bil. Hari dalam bulan) + (Caruman bulanan semasa x 1 hari)] x Kadar Dividend / 366 hari setahun	[((Baki pembuka Akaun 2 + Semua caruman bulanan sebelumnya) x Bil. Hari dalam bulan) + (Caruman bulanan semasa x 1 hari)] x Kadar Dividend / 366 hari setahun

In our EPF account, employee contributes 11% and employer contributes 12-13% of our basic salary monthly. Thus it is actually a good way of force saving for many people.

For me, it will play a very important role in my early retirement plan for sure.