Employees Provident Fund Act 1991 · Updated to 1 Oct 2025 · Part III · The fund
27. Declaration of dividend
Feedback & supportAt or after the end of the financial year, being the 31 December of each year, the Board shall, with the approval of the
Board
“Board” means the Employees Provident Fund Board established under section 3;
Minister, declare a dividend on contributions to the Fund in respect of that year—
Minister
“Minister” means the Minister charged with responsibility for matters relating to the Employees Provident Fund Board;
in relation to contributions made by the members of the
Fund who have not elected for their accounts to be managed according to Shariah under section 43A or who have made the elections under section 43A but the elections have not come into effect, at any rate according to the actual performance of the investment made by the
Board in relation to the accounts which shall not be less than two and one half per centum per annum; and
in relation to contributions made by the members of the
Fund whose elections under section 43A have come into effect, at any rate according to the actual performance of the investment made by the Board in relation to the accounts.
Subject to section 50, the dividend declared under subsection (1) shall be payable on contributions to the Fund according to the accounts of the members of the Fund respectively.
*NOTE─The Companies Act 1965 [Act 125] has been repealed by the Companies Act 2016
[Act 777] which comes into operation on 31 January 2017–see subsection 620(1) of Act 777.
36 Laws of Malaysia
Notwithstanding paragraphs (1)(a) and (b), no rate of dividend exceeding two and one half per centum per annum shall be so declared—
unless the Board is satisfied that the ability of the Fund to meet all payments required to be paid under this Act is not endangered by the declaration of such rate; and
if any sums advanced by the Government of Malaysia under section 28 have not then been repaid.