It's pro rated and calculated on daily basis. If it's simple calculation as yours, every body would rush to deposit lump sum in December to enjoy the dividend in two months time. Try calculate 100% * 6% for January deposit, then 11/12*100%*6% for February,10/12*100%*6% for March and onwards. You have to consider the money need to be deposited for one whole year to get full dividend.

My apology, it's been quite some time I made the calculation. Provided you with the wrong formula.
My formula might not be 100% correct but quite close to the final amount credited by EPF. Please remove the '100%'
from the formula I gave you. Apology for any wrong information. Just trying to contribute.
Other forummers may correct my post for further clarity and share more knowledge about the calculation. Thanks.

This post has been edited by Kcee: Feb 10 2018, 06:16 AM


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Everybody only looks at 6.90 and 6.40. Conventional EPF portfolio invested in 32% syariah asset and 68% non syariah assets managed to get 6.90% dividend while Syariah EPF invested in 100% syariah asset managed to get 6.40% dividend. Read between the lines, go through and analyse the number..... If your portfolio is overweight on certain sector and only managed to outperform another portfolio by a difference of only 0.5%, I wonder if that's the optimal return. I think EPF did a good job for the Syariah scheme.

I think Syariah scheme is a winner for Muslims because they do not need to purify the returns. For conventional scheme, they need to purify 64% of their dividends by donation according to EPF FAQ section in dividend announcement. Judging by the purification rate, seems like Muslims get better rate from Syariah scheme. Not so for the non Muslims but if the portfolio of oil and gas recover while banking stocks do not recover, the inverse could happen for next year's dividend. Leaving out politics aside, it's really about asset allocation and how it performs. Who's betting on Oil & Gas sector recovery?

So, in a way, the new society doesn't believe about contributions to Employee Provident Funds that could safeguard them for old age? Good luck millennials in saving for old age. And why would somebody work for a company that doesn't contribute to EPF? No choice?

Pro rated by multiplying x/12 times % dividend to be declared. Surely if ones can get full dividend
by depositing in December, everybody can retire with fat cheque.

7% increment and 6% return annually and consistently... That's why it sounds easy as a a cake.... But in reality for most forummers, those percentages are numbers to be chased by sacrificing a lot of effort.