KUALA LUMPUR: Malaysian Trade Union Congress (MTUC) president Mohd Effendy Abdul Ghani expressed satisfaction with the strong 2023 Employees’ Provident Fund (EPF) dividend, which signifies the robust performance of employee investments in retirement savings and reflects a stable and improving economic growth outlook.
Effendy noted that the increase in the sharia savings dividend to 5.40% from 4.75% in 2022 could potentially attract more contributors to opt for sharia savings in the future. He also emphasized that sustained economic growth is likely to lead to more job opportunities, consequently boosting the number of EPF contributors as seen in 2023, when production levels returned to pre-pandemic levels.
In an announcement, EPF declared a dividend rate of 5.50% for conventional savings, with a total distribution amounting to RM50.33 billion, and 5.40% for shariah savings, totaling RM7.48 billion. The overall income distribution for 2023 summed up to RM57.81 billion.
Effendy highlighted that EPF’s commitment to sustaining a strong dividend provides employees with confidence in the long-term growth of their savings, particularly for retirement. He stressed the importance of ensuring each contributor accumulates a minimum savings amount of approximately RM240,000 upon retirement.
He also emphasized the necessity of raising contributor awareness to encourage additional years of saving and active employment, which can lead to higher savings levels for a more comfortable retirement in the future.
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