“As long as you are an EPF member, you enjoy dividends for your savings with EPF.”

PETALING JAYA: Young Malaysians aged 16 and above are eligible to sign up as Employees’ Provident Fund (EPF) contributors and enjoy the dividends declared by EPF, says its chief strategy officer Nurhisham Hussein.

Young contributors can opt for voluntary contribution to start saving even though they are not employed, he said.

“As long as you are an EPF member, you enjoy dividends for your savings with EPF,” he said.

Nurhisham also said EPF is well-known for offering higher dividends than the interest rates offered by local commercial banks for savings.

The EPF declared 6.1% dividend for 2021, 5.2% for 2020, 5.45% for 2019, 6.15% for 2018, 6.9% for 2017, 5.7% for 2016, 6.4% for 2015, 6.75% for 2014, 6.35% for 2013, 6.15% for 2012, 6% for 2011 and 5.8% for 2010.

Apart from statutory contributions to EPF by employers, Malaysians can opt to save with EPF under voluntary contribution which offers four categories of savings – self contribution, top-up saving, i-Saraan and Kasih Suri Keluarga.

The maximum sum of voluntary contribution for a year is RM60,000, he said.

Koong Lin Loong, managing partner of Reanda LLKG International, told Sin Chew Daily that members of the public should be aware that EPF only allows withdrawal at 55 years of age in compliance with EPF regulations.

Under the frequently asked questions section, the EPF website states that it is obliged to provide at least 2.5% dividends as stated in Section 27 of the Employees Provident Fund Act 1991, except for savings under syariah account).

As of December 2020, the EPF had 14.89 million contributors, according to its official website.