How to Calculate HRD Corp Levy: Rates, Exemptions & Claim Procedures
Step-by-step guide to calculating HRDF contributions and maximizing training claims
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HRD Corp levy = Total Monthly Wages x 1% for employers with 10+ employees. Include basic salary, fixed allowances, and commissions. Exclude overtime, bonuses, and reimbursements. For RM100,000 total wages, levy is RM1,000/month. Claim back 100% for approved training.
Learn how to accurately calculate HRD Corp levy for your Malaysian company. This guide covers eligible wages, exemptions, calculation examples, and strategies to maximize your training claims.
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Frequently Asked Questions
How is HRD Corp levy calculated?
HRD Corp levy is calculated as 1% of total monthly wages for employers with 10+ employees. Wages include basic salary, fixed allowances, and commissions. For example, if total wages are RM50,000/month, the HRD Corp levy is RM500/month.
What is included in wages for HRD Corp calculation?
HRD Corp levy is calculated on: basic salary, fixed allowances (housing, transport, meal), shift allowances, commissions, and incentives. Excluded: overtime pay, bonuses, gratuities, retirement benefits, and expense reimbursements.
What is the maximum HRD Corp levy per employee?
There is no maximum wage ceiling for HRD Corp levy calculation. The 1% applies to the full wages of each employee. Unlike SOCSO/EIS which cap at RM5,000, HRD Corp levy has no cap.
Can I claim more than I contributed to HRD Corp?
Yes, employers can claim up to 100% of their total levy contribution for approved training. Some schemes allow additional claims beyond contributions. Check your employer category and available schemes via eTRiS portal.
How do I calculate HRD Corp for part-time employees?
Part-time Malaysian employees count towards your total headcount. Calculate their levy based on actual wages paid. If their inclusion brings you to 10+ employees, you must register and pay levy for all employees.
Are foreign workers included in HRD Corp calculation?
Foreign workers are NOT counted for the 10-employee registration threshold. However, once registered, employers MAY include foreign workers in levy calculation and claim training for them (subject to HRD Corp approval).
How do I calculate HRD Corp for new employees?
Include new employees from their first month of employment. Calculate levy based on actual wages paid in that month. Prorate if they joined mid-month based on actual days worked.
What if my employee count drops below 10?
Once registered, employers must continue contributing even if headcount drops below 10. You can apply for exemption if headcount consistently remains below 5 for 6 consecutive months.
How do I know my HRD Corp levy balance?
Check your levy balance and contribution history on the eTRiS portal at etris.hrdcorp.gov.my. Log in with your employer credentials to view available balance for training claims.
Can I backdate HRD Corp levy payments?
Yes, you can make backdated payments but penalties apply. Late payment incurs 10% of outstanding amount plus RM2 per day. It's advisable to pay on time to avoid accumulating penalties.