PETALING JAYA: The Employees Provident Fund (EPF) has announced dividends of 5.2% for conventional savings and 4.9% for shariah accounts for 2020.
These are slightly lower when compared with 2019 when it declared a 5.45% dividend for conventional savings and 5% for shariah accounts.
Still, the dividends for this year are expected to keep contributors smiling as there were expectations of a much lower payout due to the effects of the pandemic, which had adversely hit the local and global economy last year.
The dividend is even higher than Amanah Saham Nasional Bhd’s 4.25%.
The dividends are also much higher than what banks are offering for fixed deposits, which are between 1.8% and 2.2%, depending on the amount and period.
The dividends will involve a payout amounting to RM42.88 billion for conventional savings and RM4.76 billion for shariah accounts. In total, the payout amounts to RM47.64 billion when compared with RM41.68 billion for 2019.
The fund has been consistently paying out at least 2% more than the mandated 2.5% under the EPF Act 1991 for several decades.