HRDF is a fund for employer to train their staff.
3 Steps to claim HRDF
- Register for your employer for any HRDF claimable traning
- Employer to pay the training
- HRDF will reimburse the employer
Can I not register for HRDF ?
- If your company has 10 or more of employees, then you MUST register for HRDF.
- Charging 1% of employee monthly wages
- Refer to this list of industries : https://hrdcorp.gov.my/wp-content/uploads/2021/03/FEDERAL-GOVERMENT-GAZETTE-PEMBANGUNAN-SUMBER-MANUSIA-BERHAD-AMENDMENT-OF-FIRST-SCHEDULE-ORDER-2021.pdf
- The following are exempted :
- Local Council
- Federal government
- State Government
- Statutory Body
- NGO with Social and Welfare Activities
Industries covered:
- Agriculture and farming
- Livestock and fisheries
- Forestry and logging
- Mining and quarrying
- Manufacturing and production
- Trading, business and wholesale
- Construction
- Supply
- Property
- Culture, arts and entertainment
- Fashion and clothes
- Cosmetic
- Tourism and recreation
- Service
- Franchise
- Electricity
- Oil
- Gas and steam
- Water Sewerage
- Management of solid waste, liquid and gaseous and remedial
- Automotive
- Transportation
- Repair and maintenance
- Storage
- Delivery
- Food and beverages
- Information system
- Communication and multimedia
- Broadcasting and films
- Banking and finance
- Insurance and takaful
- Investment
- Co-operative societies
- Professional
- Science and technology
- Research and development
- Science and technicality
- Administration and support service
- Education
- Medical and health facilities
- Social welfare
How to calculate the Levy?
Documents required to register HRDF ?
- Certificate of Incorporation / registration
- (Form 9 / business license / Form 8 / Section 14 Super form and other registration certificate)
- Documents for no. of employees
- (EPF statement / SOCSO statement)
- Documents for employers activities
- (Company profile / annual report or other documents showing employers activities)
How to register HRDF ?
Q & A
? Who should register？
? If your company has 10 or more of employees, then you MUST register for HRDF.
? How much does the employer need to pay for each month？
? 1% of the employee’s monthly salary.
? Is the 1% being deducted directly from the employee’s salary?
? No. It’s being paid by the employer.
? How do employer make payment？
? Payment can be made via online
? Who considered as an employee？
? Sdn Bhd – director and employee
? Sole Prop & Partnership – employee only
? How to register？
? Registration can be done via HRDF website or walk-in
? Click here:https://hrdcorp.gov.my/employer-2/
? What does salary mean？
? Salary means basic salary, fixed allowances, and leave pay.
? Why employers have to pay HRDF levy? Any benefits?
? Employers are able to claim training grants from HRDF for the cost (course fee, transportation & accommodation) incurred in sending its employee to attend a training program or providing internal training (recognized speaker).
? How to claim？
? Claim can be made via HRDF website.
? Can employers not register with HRDF? What are the consequences?
? Any employer who meets the criteria and choose not to register with HRDF shall be liable to a fine of not more than RM10,000 or to imprisonment for a term not exceeding one year or to both.
For more information, please visit HRDF website : https://hrdcorp.gov.my/expansion-of-psmb-act-2001/