Last updated: February 2026
HRD Corp Levy Calculator Malaysia
HRD Corp Levy = Total Eligible Monthly Wages x 1% (mandatory) or 0.5% (voluntary). Employers with 10+ Malaysian employees must contribute 1% of monthly wages. Employers with 5-9 employees can voluntarily register at 0.5%. Use this calculator to estimate your monthly and annual training fund contribution.
Calculate your company's HRD Corp levy instantly. Enter your total wages and employee count to see your monthly contribution and annual training budget.
Enter Details
Quick presets
Sum of basic salary + fixed allowances + commissions for all employees
10+ employees = mandatory, 5-9 = optional
Enter your total wages and employee count to calculate your HRD Corp levy
HRD Corp Levy Quick Reference 2026
| Total Monthly Wages | Mandatory (1%) | Voluntary (0.5%) | Annual Levy (1%) |
|---|---|---|---|
| RM 30,000 | RM 300 | RM 150 | RM 3,600 |
| RM 50,000 | RM 500 | RM 250 | RM 6,000 |
| RM 100,000 | RM 1,000 | RM 500 | RM 12,000 |
| RM 250,000 | RM 2,500 | RM 1,250 | RM 30,000 |
| RM 500,000 | RM 5,000 | RM 2,500 | RM 60,000 |
| RM 1,000,000 | RM 10,000 | RM 5,000 | RM 120,000 |
Source: HRD Corp (PSMB Act 2001)
HRD Corp Levy Key Facts
1% of wages
0.5% of wages
10+ Malaysian employees
5-9 Malaysian employees
No maximum cap
15th of following month
10% + RM2/day
Within 6 months
PSMB Act 2001
Frequently Asked Questions
How do I calculate HRD Corp levy?
HRD Corp levy is calculated using the formula: Total Eligible Wages x 1%. For mandatory employers (10+ employees), multiply your total monthly wages by 1%. For voluntary employers (5-9 employees), multiply by 0.5%. Example: RM80,000 total wages x 1% = RM800 monthly levy.
What wages are included in HRD Corp calculation?
Include in your calculation: basic salary, fixed allowances (housing, transport, meal, shift), commissions, and incentives. Exclude from calculation: overtime pay, bonuses, annual gratuities, retirement benefits, travel allowances, and expense reimbursements.
Is there a wage ceiling for HRD Corp levy?
No, unlike EPF, SOCSO, and EIS, there is no wage ceiling for HRD Corp levy. The 1% rate applies to the full wages of each employee regardless of salary amount. Higher-paid employees contribute proportionally more to your levy.
How do I calculate HRD Corp for multiple branches?
Calculate total wages across all branches under the same company registration. HRD Corp registration is company-wide, not branch-specific. Sum up eligible wages from all locations, then apply the 1% rate to get your consolidated monthly levy.
How do I calculate levy for part-time employees?
Part-time Malaysian employees are included in both headcount and levy calculation. Calculate based on actual wages paid. If their inclusion brings your total to 10+ Malaysian employees, you must register and pay levy for all employees including part-timers.
Do I include foreign workers in levy calculation?
Foreign workers are NOT counted towards the 10-employee threshold for mandatory registration. However, once registered, you may choose to include foreign workers in your levy calculation and claim training expenses for them (subject to HRD Corp approval).