The calculation for EPF dividend is not straight forward. It is not calculated by simply multiply the total contribution or year end balance with the declared dividend rate.
The way EPF dividend calculated is based on daily rest. Means that, dividend is calculated based on daily balanced of each account 1 and 2. However, please bear in mind the following,
- Monthly contribution start earnings dividend only on the last day of the month irrespective the actual day the monthly contribution is deposited.
- For withdrawal, dividend for the withdrawal sum is only eligible up to the day prior to withdrawal day. No dividend will be given on the withdrawal day.
The following is simple example on how to calculate. Alternatively, you may want to use online “EPF Dividend Calculator”