The Human Resources Development Fund (HRDF) was established under the legal requirements of 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.
The HRDF was established with the aim of developing quality human capital and world-class workforce in order for Malaysia to achieve a high income economy based on knowledge and innovation.
Who Should Register With HRDF ?
PSMB Act 2001 stipulates that every employer who is covered under the Act is required to register with PSMB within such time and manner as may be prescribed. Any employer who is convicted for not registering with PSMB may be fined up to an amount not exceeding RM10,000 or face imprisonment up to a year, or both.
The Amendment of the First Schedule is came into effect on 1 April 2017. The summary of the amendment of the First Schedule is as follows:
a. To standardise 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.
Rate of Levy Payment - 1% of the monthly wages of each of their Malaysian employees.
b. To allow for voluntary registration to all employers under the sub-sectors that employ five (5) to nine (9) local employees.
Rate of Levy Payment - 0.5% of the monthly wages of each of their Malaysian employees.
The Amendment of the First Schedule is came into effect on 1 April 2017. The summary of the amendment of the First Schedule is as follows:
a. To standardise 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.
Rate of Levy Payment - 1% of the monthly wages of each of their Malaysian employees.
b. To allow for voluntary registration to all employers under the sub-sectors that employ five (5) to nine (9) local employees.
Rate of Levy Payment - 0.5% of the monthly wages of each of their Malaysian employees.
According to the PSMB Act 2001, definitions of industries covered are as follows:
i. Service Sector
Eligibility Criteria
a. ≥ 10 Malaysian Employees (mandatory to register) - Rate of Levy Payment 1%
b. 5 – 9 Malaysian Employees (given option to register) - Rate of Levy Payment 0.5%
Sub-Sectors Included
1. Hotel
2. Air Transport
3. Travel Agency (Inbound)
4. Telecommunication
5. Freight Forwarding
6. Shipping
7. Postal or Courier
8. Advertising
9. Computer Services
10. Energy
11. Training
12. Higher Education
13. Commercial Land
14. Transport
15. Railway Transport Services
16. Direct Selling
17. Port Services
18. Engineering Support and Maintenance Services
19. Research and Development
20. Warehousing Services
21. Security Services
22. Private Hospital Services
23. Gas, Steam and Air-Conditioning Supply
24. Water Treatment and Supply
25. Sewerage
26. Waste Management and Material Recovery Services
27. Production of Motion Picture, Video and Television Programme, Sound Recording and Music Publishing
28. Information Service
29. Building and Landscape Services
30. Event Management Services
31. Early Childhood Education
32. Health Support Services
33. Franchise
34. Sale and Repair of Motor Vehicles
35. Private Broadcasting Services
36. Driving School
37. Veterinary Services
38. Hypermarket, Supermarket and Departmental Store Services
39. Food and Beverage Services
40. Tourism Enterprise (Outbound)
22. Private Hospital Services
23. Gas, Steam and Air-Conditioning Supply
24. Water Treatment and Supply
25. Sewerage
26. Waste Management and Material Recovery Services
27. Production of Motion Picture, Video and Television Programme, Sound Recording and Music Publishing
28. Information Service
29. Building and Landscape Services
30. Event Management Services
31. Early Childhood Education
32. Health Support Services
33. Franchise
34. Sale and Repair of Motor Vehicles
35. Private Broadcasting Services
36. Driving School
37. Veterinary Services
38. Hypermarket, Supermarket and Departmental Store Services
39. Food and Beverage Services
40. Tourism Enterprise (Outbound)
ii. Manufacturing Sector
Making or processing of an article by labour or machine or both, including the transformation of parts or components into another article of a different nature or character by way of altering, blending, ornamenting, finishing or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal, including the building of a ship or the assembly of parts of a ship.
Making or processing of an article by labour or machine or both, including the transformation of parts or components into another article of a different nature or character by way of altering, blending, ornamenting, finishing or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal, including the building of a ship or the assembly of parts of a ship.
Eligibility Criteria
a. ≥ 10 Malaysian Employees (mandatory to register) - Rate of Levy Payment 1%
b. 5 – 9 Malaysian Employees (given option to register) - Rate of Levy Payment 0.5%
Eligibility Criteria
a. ≥ 10 Malaysian Employees (mandatory to register) - Rate of Levy Payment 0.5%
b. 5 – 9 Malaysian Employees (given option to register) - Rate of Levy Payment 1%
b. 5 – 9 Malaysian Employees (given option to register) - Rate of Levy Payment 1%
Sub-Sectors Included
1. Petroleum and Gas Extraction
2. Mineral and Stone Quarrying
2. Mineral and Stone Quarrying
What Is Human Resources Development (HRD) Levy?
Section 14(1) of PSMB Act, 2001 stipulates that there shall be paid by every employer to whom the PSMB Act, 2001 applies, a HRD levy in respect of each of his employees at the rate of one per centum (1%) of the monthly wages of the employee.
Section 15(2) of PSMB Act, 2001 stipulates that there shall be paid by employer a HRD levy in respect of each of his employees at the rate of 0.5 per centum of the monthly wages of the employee (applicable to employer who opts to be registered).
Section 14(1) of PSMB Act, 2001 stipulates that there shall be paid by every employer to whom the PSMB Act, 2001 applies, a HRD levy in respect of each of his employees at the rate of one per centum (1%) of the monthly wages of the employee.
Section 15(2) of PSMB Act, 2001 stipulates that there shall be paid by employer a HRD levy in respect of each of his employees at the rate of 0.5 per centum of the monthly wages of the employee (applicable to employer who opts to be registered).
Benefits of HRDF
Training grants are open to all employers 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.
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Training grants are open to all employers 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.
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2. AirAsia BigPay - Sign Up Today To Get RM 10 Free Credit !
Edited by: 浪子
Bibliography
3E Accounting. (n.d.). What Is HRDF? Retrieved from
https://www.3ecpa.com.my/blog/what-is-hrdf/
PSMB. (n.d.). Who Should Register With PSMB? Retrieved from
https://www.hrdfconference.com.my/hrdfknowledgebase/knowledge-base/who-should-register-with-psmb/#manufacturing-sector
https://www.hrdfconference.com.my/hrdfknowledgebase/knowledge-base/who-should-register-with-psmb/#manufacturing-sector
PSMB. (n.d.). What Is Human Resources Development (HRD) Levy? Retrieved from
https://www.hrdfconference.com.my/hrdfknowledgebase/knowledge-base/what-is-human-resources-development-hrd-levy/
Human Resources Development Fund (HRDF) in Malaysia
Reviewed by 浪子
on
December 17, 2018
Rating:
Reviewed by 浪子
on
December 17, 2018
Rating:
