EPF announces 5.5% Conventional & 5.4% Shariah dividend rates, to introduce flexible Account 3 this April

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The Employees Provident Fund (EPF) today announced the dividend rates for the financial year ending 31 December 2023 (FY2023) for its members. Recording higher dividends compared to last year, plans for the upcoming flexible 3rd account were also recently unveiled. 

As reported by Bernama, the dividend rate for Conventional savings is 5.5 per cent while the dividend rate for Shariah savings is 5.4 per cent. For reference, EPF’s dividends last year were 5.35 per cent for Conventional and 4.75 per cent for Shariah for the financial year ending 31 December 2022. 

EPF added that the combined total payout for FY2023 is RM57.81 billion. The payout will benefit more than 16 million EPF members, including individuals from both formal and informal sectors. 

As for the upcoming flexible EPF Account 3, Finance Minister II Datuk Seri Amir Hamzah Azizan on 29 February revealed that it will be announced this April. As per the report by The Star, these include the withdrawal mechanism and flexibility for EPF contributors.

However, Amir Hamzah stressed that the government will not be looking at any targeted EPF withdrawals. This is because it will worsen the issue of insufficient retirement savings. 

So, what do you guys think of the FY2023 EPF dividend rates and the upcoming Account 3? Share your thoughts with us in the comments below and stay tuned to TechNave for more trending news.