What is HRDF (Human Resource Development Fund)
Who is liable to register with HRDF
To determine whether your business is required to register and contribute for HRDF levy:
- To check whether your business fall under the list of industries covered under First Schedule of PSMB Act 2001
- To check if you employ ten (10) or more Malaysian employees
If yes, you are required to register as an eligible employer and contribute HRDF levy to HRDF.
The HRD Corp also allows optional registration (subject to approval):
- Employer within the industries of First Schedule and employing 5- 9 Malayisan employees
- Employer (non-governmental organisation) employing 5 or more but less than 500,000 Malaysian employee such as labour union, religious organisation, political organisation and etc
Employers under the newly-included industries were originally given an exemption from HRDF levy for 3 months from 1 March to 31 May 2021. The exemption was then extended until Jan 2022 (no levy due for June to Dec 2021 payrolls).
Imposed rate of HRDF levy
Company with 10 or more employees
*compulsory to register with HRDF
COMPANY OF BELOW 10 EMPLOYEES
*Not compulsory to register with HRDF (can optionally register)
Example to calculate HRDF levy and submit the contribution of levy
You will be contributing 1%, your employee's salary is RM2000 with a fixed allowances of RM200, then
(RM2000+RM200) * 1%= RM 22 (HRDF levy)
***The HRD levy contribution MUST BE pay by the employers (cannot deduct from employee salary)
What are the benefits as HRD registered Employers?
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