Note: EPF declares each year’s dividend the following year. This article covers the dividend for the 2025 financial year, which was announced in February 2026 and is currently the most recent rate available. The 2026 dividend won’t be declared until Q1 2027.
The Employees Provident Fund (EPF) declared a 6.15% dividend rate for 2025 for both Simpanan Konvensional and Simpanan Shariah accounts, down from 6.30% in 2024. Total payout hit RM79.6 billion (RM67.1 billion for Conventional, RM12.5 billion for Shariah), credited to members’ accounts on 1 March 2026.
The 2025 Dividend at a Glance
| Metric | 2025 | 2024 | Change |
| Simpanan Konvensional rate | 6.15% | 6.30% | -0.15 pp |
| Simpanan Shariah rate | 6.15% | 6.30% | -0.15 pp |
| Conventional payout | RM67.1 billion | RM63.05 billion | +RM4.05 billion |
| Shariah payout | RM12.5 billion | RM10.19 billion | +RM2.31 billion |
| Total payout | RM79.6 billion | RM73.24 billion | +8.7% |
| Total distributable income | RM82.7 billion | RM75.5 billion | +9.5% |
| Total investment assets | RM1.409 trillion | RM1.250 trillion | +12.8% |
EPF announced the rate on 28 February 2026 at its headquarters in Kwasa Damansara, covering the financial year ended 31 December 2025.
Why Did the EPF Dividend Drop From 6.30% to 6.15%?
This is the question most members are actually searching for, and it’s worth answering directly instead of just reporting the number.
Two main forces pulled the rate down in 2025:
- A weaker final quarter. According to analysis from The Edge Malaysia, EPF’s investment returns in the fourth quarter of 2025 were its worst in nine quarters. Unlike late 2024, there was no large profit-taking from the real estate and infrastructure portfolio to boost the final quarter, and momentum that had built up earlier in the year faded rather than accelerating.
- A stronger ringgit and softer local equities. iMoney’s coverage notes the domestic stock market posted only modest gains in 2025 compared with a stronger 2024, while a stronger Malaysian ringgit reduced the local-currency value of returns earned on EPF’s overseas investments.
Despite this, EPF leadership has framed the result as a sign of resilience rather than weakness. In the official KWSP statement, EPF Chairman Tan Sri Mohd Zuki Ali attributed the performance to resilient equity markets and a well-diversified portfolio that helped offset a volatile year shaped by unpredictable global trade policy. Prime Minister Anwar Ibrahim separately described the 6.15% payout as evidence of strong fund management and continued public confidence in the retirement system, despite global headwinds.
Where the Returns Actually Came From
Breaking down EPF’s RM82.7 billion in 2025 investment income by asset class:
| Asset class | Portfolio weight | Income contribution | Share of income | ROI |
| Equities | 46.1% | RM50.7 billion | 64% | 7.9% |
| Fixed income | 44.7% | RM26.3 billion | 33% | 4.3% |
| Real estate & infrastructure | 6.0% | — | — | — |
| Money market | 3.2% | — | — | — |
Equities remained the single largest driver of income, actually growing from RM49.9 billion in 2024 to RM50.7 billion in 2025, even though the ROI on equities moderated to 7.9% amid global volatility. Private equity, roughly 8% of the equity book, was a standout at a 10.5% ROI. Fixed income — dominated by Malaysian Government Securities — provided the ballast, contributing RM26.3 billion at a steady 4.3% ROI, according to figures published by KWSP.
Geographically, domestic investments made up 61.7% of assets and generated RM39.3 billion in income, while global investments — 38.3% of the portfolio — contributed slightly more at RM39.9 billion, or just over half of total investment income, underscoring how much EPF’s 2025 result leaned on overseas markets even as the stronger ringgit ate into those same returns.
EPF Dividend Rate History: 2013–2025
Context matters more than a single year’s number. Here’s the full decade-plus picture for both account types:
| Year | Simpanan Konvensional | Simpanan Shariah |
| 2013 | 6.35% | — |
| 2014 | 6.75% | — |
| 2015 | 6.40% | — |
| 2016 | 5.70% | — |
| 2017 | 6.90% | 6.40% |
| 2018 | 6.15% | 5.90% |
| 2019 | 5.45% | 5.00% |
| 2020 | 5.20% | 4.90% |
| 2021 | 6.10% | 5.65% |
| 2022 | 5.35% | 4.75% |
| 2023 | 5.50% | 5.40% |
| 2024 | 6.30% | 6.30% |
| 2025 | 6.15% | 6.15% |
Rate history compiled from KWSP’s dividend records and The Star’s reporting.
Zooming out, the 6.15% rate for 2025 still sits comfortably above EPF’s longer-term averages:
- Simpanan Konvensional: 5-year average 5.88% · 10-year average 5.88% · 15-year average 6.03% · 20-year average 5.87%
- Simpanan Shariah: 5-year average 5.65% · 10-year average 5.60%
In other words, 2025’s rate is above the fund’s five-year, ten-year, fifteen-year, and twenty-year track record for Conventional savings — the year-on-year dip looks less significant once you widen the lens, as Ecovis Malaysia’s analysis points out.
The Guaranteed Minimum — And Why It Doesn’t Apply Equally
Under Section 27 of the EPF Act 1991, Simpanan Konvensional carries a statutory minimum guaranteed dividend of 2.50% per year, regardless of how EPF’s investments perform. This minimum has never actually been triggered in recent history — even in EPF’s weaker years (like 2020’s 5.20%), the rate stayed well above the floor.
Simpanan Shariah has no equivalent legislated minimum. Because Shariah returns must come strictly from Shariah-compliant asset yields, there’s no statutory backstop the way there is for Conventional savings — a distinction that’s easy to miss and worth flagging clearly for members deciding between the two.
What 6.15% Actually Means for Your Savings
A simple example: if you had RM100,000 in your EPF account at the start of 2025 with no further contributions, you’d earn roughly RM6,150 in dividends for the year. A member with RM50,000 parked for the full year would earn approximately RM3,075.
In practice, most members are contributing monthly rather than sitting on a static balance — and because EPF calculates dividends on your daily balance, contributions made earlier in the year earn a full year’s dividend, while a contribution made in, say, October only earns roughly three months’ worth. This pro-rating is why two members with the same year-end balance can earn noticeably different dividend amounts depending on when their money went in.
Set against Malaysia’s typical inflation range of 2–3%, a 6.15% return still delivers a solid real (after-inflation) gain — Ecovis Malaysia pegs the real return at roughly 3.6% once inflation is accounted for.
What Else Changed for EPF Members in 2026
Alongside the dividend announcement, EPF rolled out several member-facing changes worth knowing about:
- i-Legasi scheme: a new 2026 initiative letting EPF members aged 55 and above share part of their surplus retirement savings with family members.
- Higher withdrawal flexibility: certain withdrawal limits for eligible members were raised from RM3,000 to RM10,000.
- Bigger incentives for the self-employed: government incentives for eligible self-employed contributors increased to up to RM600 per year.
These changes don’t affect how the 2025 dividend itself is calculated, but they’re relevant context for anyone managing their EPF strategy heading into 2026, as covered in iMoney’s roundup of the announcement.
FAQ
When was the EPF dividend for 2025 credited?
Dividends were credited to members’ accounts on 1 March 2026, shortly after the 28 February announcement.
Why did the EPF dividend fall in 2025?
A weak fourth quarter (EPF’s worst in nine quarters), modest domestic equity market growth, and a stronger ringgit reducing the local-currency value of foreign investment returns all contributed to the lower rate.
Does Simpanan Shariah have a guaranteed minimum dividend?
No. Only Simpanan Konvensional carries the 2.50% statutory minimum under the EPF Act 1991. Simpanan Shariah has no equivalent legislated floor.
Is 6.15% a good return?
Relative to Malaysia’s inflation rate (typically 2–3%) it’s a solidly positive real return, and it sits above EPF’s 5-, 10-, 15-, and 20-year historical averages for Conventional savings.
What will the EPF dividend be for 2026?
EPF hasn’t declared it yet — that announcement is expected in the first quarter of 2027, once the 2026 financial year closes. It will depend on how global equities, bond yields, and the ringgit perform through the rest of 2026.
Bottom Line
The headline number — 6.15%, down from 6.30% — undersells what actually happened in EPF’s 2025 financial year. Total payouts rose by RM6.4 billion, assets under management crossed RM1.4 trillion for the first time, and the rate itself remains above the fund’s long-run averages. The dip reflects a genuinely tougher back half of the year for equities and currency, not a structural problem with the fund. For most members, the practical takeaway hasn’t changed: consistent contributions, left to compound at rates like this, remain one of the more reliable ways to build retirement savings in Malaysia.