The HRDF is a pool of funds generated from levies paid by employers in the manufacturing and service sectors, as defined by the Pembangunan Sumber Manusia Berhad Act 2001, and from optional registrants. This fund is dedicated to enhancing the skills and training of the Malaysian workforce.
Who is eligible to register HRDF?
HRDF registration is compulsory for Malaysian employers with 10 or more local employees.
Employers with 5 to 9 local employees may register voluntarily.
All industries are included as of March 1, 2021, except for federal statutory bodies, state governments, and NGOs involved in social welfare.
What is HRDF Rate?
HRDF Contribution Rates (2021):
- Employers with 10+ Malaysian employees: 1% of monthly wages (basic salary + fixed allowances) – Mandatory.
- Employers with 5-9 Malaysian employees: 0.5% of monthly wages (basic salary + fixed allowances) – Optional.
How is HRDF Levy Calculation?
HRDF Levy Calculation:
- Included: Basic salary and fixed allowances.
- Excluded: Overtime, variable allowances (travel, mileage, transport, parking, petrol), bonuses, commissions, and incentives.
- Basic Salary Adjustments:
- Deduct: Unpaid leave, absences, lateness.
- Add: Arrears, increments, back pay, paid leave, leave encashment (if applicable), based on the payroll summary.
How to register for HRDF in 2021?
Step 1:
Register in HRD website.
Step 2:
Make sure that you have scanned all the related document. You can download the checklist.
Step 3:
Fill in the employer integrity pledge.
Step 4:
Once you have prepared all the supporting document. Submit the Form 1 on the HRD website. The approval process will take 7 working days. The approval letter will be sent via email along with the user ID and password to login into the E-Tris system.
How to make HRDF Levy Payment?
After obtaining your User ID and password for the eTris system, you will also receive an email stating your liability date for the levy payment. Payment is made on the eTris website and the payment methods available are FPX and JomPay.
HRDF Exemption 2021
A total of 2 months (July and August 2021) HRDF Levy exemption is given to registered employers whose businesses were affected by the Movement Control Order (MCO) only manufacturing, services, mining and quarrying, oil and gas industries were liable to contribute to HRDF. The new sectors now include construction, trading, and wholesale industries.
On June 2021 the Malaysian government launched an economic recovery programme called “National Well-Being and Economic Recovery Package”, also know as PEMULIH under the National Recovery Plan to assist with the recovery and conservation of the financial welfare for citizens who have been affected by the recent Covid-19 pandemic. A part of the PEMULIH recovery movement is the changes in the payroll processes.
HRDF Payment extension has been extended until December 2021. A six months HRDF Levy exemption from July to December 2021 is exempted for new employers in new sectors covered by the expansion of Pembangunan Sumber Manusia Act 2001 (PSMB).
What happens if i don’t pay HRDF?
According to Section 13(1) of the PSMB Act (Pembangunan Sumber Manusia Berhad Act), failure in submitting the levy payment before the required time period (usually on the 15th of every month), employers pose a risk of these penalties :
- A fine not exceeding RM20,000 OR imprisonment for a term not exceeding 2 years OR both.
- Yearly interest of 10% for each day of delayed payment.
How to claim HRDF?
Skim Bantuan Latihan (SBL) is the main scheme under HRDF and its objective is to encourage employers to retrain and upgrade their employees’ skills in line with their operational and business requirements. Under SBL, employers are free to identify their own training needs and implement the training programme in stages
SBL requires employers to make full payment for the training programme and reimbursement is based on employer claims
Training Methodology
- Inhouse
– Own Premise, hotel or external training place
– Min : 2 Pax and Max : 35-40 Pax - Public
– Local / Oversea
– Min : 1 Pax and Max : 9 Pax - Coaching and Mentoring
– Can be applied in workplace setting to ensure continuous process of development
– Min : 1 Pax and No Max Pax - Job Coach
– A Special training programme for person with disabilities (PWDs)
– Min : 5 Pax and No. Max Pax - E Learning
– Conducted via electronic media, typically on the internet. Learning through curriculum out of classroom)
Min : 1 Pax and No Max Pax - Development Programme
– Diploma, Degree, Master & PHD – full time or part time
– Min : 1 Pax and No Max Pax
Claimable Cost
- Course Fees
- Meal Allowance
- Daily Allowance
- Consumable Training Materials
- Hotel Rental Package or Training Facilities Rental
- Airfare Ticket or Transportation
- * Others expeneses please refer the allowable cost matrix
Minimum Training Duration
- 4 Hours (1/2 day)
Submission via eTRiS under Skim Bantuan Latihan (SBL) must be submitted by employer BEFORE the training commences.
Application Process
- 1. Application
- Online application through eTRiS system
- Document Required:
- Invoice / Quotation
- Training Schedule / Course Content
- Trainer’s Profile
- 2. Approval
- 3. Claim
Document Required :
– Itinerary (airfare) – if any
– Receipt & Invoice (transportation) – if any
Effective 1st August 2019, training programmes must commence within six (6) months from the date of training grant applications are made and training claim submissions must be made not more than six (6) months from the date the training programmes are completed.
Fore more info about HRDF scheme, please contact : 1800 88 4800, support@hrdf.com.my.
