The Human Resources Development Fund (HRDF) was established under the legal requirements of the Human Resources Development Act 1992 (Currently known as the Pembangunan Sumber Manusia Berhad Act 2001).
The HRDF is a pool of funds that consists of Human Resources Development levies collected from employers of the manufacturing and service sectors as listed in the First Schedule of the Pembangunan Sumber Manusia Berhad Act 2001 (liable registrants) as well as optional registrants.
In a simpler way to say, the HRDF Malaysia was established with the aim of developing quality human capital and a world-class workforce in order for Malaysia to achieve a high-income economy based on knowledge and innovation.
What are the benefits of HRDF?
Training grants are open to all employers registered and/or incorporated in Malaysia who have registered with PSMB and pay the HRD levy as to defray all or a major portion of the costs incurred in employee training. Financial assistance is given to employers that conduct training that is in line with their business operations.
What is Human Resources Development levy? (HRDL)
According to Section 14(1) of PSMB Act, 2001 an HRD levy, mandatory levy payment imposed by the Government on specified groups of employers for the purpose of employee training and skills upgrading shall be paid by every employer to whom the PSMB Act, 2001 applies. Employers are liable to pay a Human Resource Development levy for each working employee at the rate of 1.0% of the monthly wages of the employee.
Who can register with PSMB?
All employers in the following sectors (please refer to this table) are mandatory to register with PSMB. Under section 13(2), any employer who failed to register with PSMB may be fines up to RM10,000 or face one-year imprisonment or both.
The Amendment of the First Schedule is coming into effect on 1 April 2017. The summary of the amendment of the First Schedule is as follows:
|Amendment||Imposed rate of HRD Levy|
|To standardize the minimum number of local employees to register with PSMB to ten (10) for all employers under the existing coverage and to delete the requirement for paid up capital for the Manufacturing, Mining and Quarrying sectors.||1 per cent of the monthly wages of each of their Malaysian employees|
|To allow for voluntary registration to all employers under the existing 63 sub-sectors that employ five (5) to nine (9) local employees||0.5 per cent of the monthly wages of each of their Malaysian employees|
HRDF included sub-sectors
Human Resources Development Fund in Malaysia included sub-sectors are:
- Hotel Industry
- Security Services
- Air Transport
- Hypermarket/Supermarket/Departmental Store
- Port Services
- Commercial Land Transport and Railway Transport Services
- Freight Forwarding
- Direct Selling
- Tour Operating Business (In-bound only)
- Research & Development
- Health support services
- Postal or Courier
- Warehousing Services
- Water treatment and supply
- Engineering Support & Maintenance Services
- Computer Services
- Private Hospital Services
- Higher Education
- Gas, steam and air-conditioning supply
- Waste management and material recovery services
- Information service
- Tourism enterprise
- Building and landscape services
- Food and beverage services
- Early childhood education
- Sale and repair of motor vehicles
- Private broadcasting services
- Production of motion picture, video and television programme, sound recording and music publishing
- Driving school
- Veterinary services
- Event management services
- Transport Equipment
- Textile and Apparel
- Glass and Glass Product
- Industrial Chemicals
- Electrical and Electronic
- Mineral Product
- Metal Product
- Paper and Pulp
- Iron and Steel
- Rubber Product
- Furniture and Fixtures
- Food and Beverages
- Printing and Publishing
- Petroleum and Coal
- Optical and Photography
- Wood & Wood based and Cork
- Petroleum Refinery
Mining and Quarrying Sector
- Mineral and stone quarrying
- Petroleum and gas extraction
Known: What is SOCSO/iPERKESO?
Visit HRDF website: https://www.hrdf.com.my/