HRD Corp Levy Malaysia 2025: Complete Registration & Compliance Guide
Everything SME employers need to know about HRDF contributions, registration, and training claims
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Claim back training costs from HRD Corp fund
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Stay compliant with PSMB Act 2001
Online registration and claims via eTRiS
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HRD Corp levy (formerly HRDF) is a 1% mandatory contribution on monthly wages for Malaysian employers with 10+ employees. Register at etris.hrdcorp.gov.my, remit by 15th monthly, and claim back for approved employee training. Covered sectors include manufacturing, services, mining, and quarrying.
This comprehensive guide covers HRD Corp registration requirements, levy calculation, payment deadlines, training claims, and penalties for non-compliance. Updated for 2025 with latest rates and procedures.
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Frequently Asked Questions
What is HRD Corp levy in Malaysia?
HRD Corp (Human Resources Development Corporation) levy is a mandatory contribution by employers to fund employee training and development. Previously known as HRDF, employers with 10 or more Malaysian employees must contribute 1% of monthly wages to the fund.
Who must register with HRD Corp Malaysia?
Employers with 10 or more Malaysian employees in sectors covered by the PSMB Act 2001 must register with HRD Corp. This includes manufacturing, services, mining, and quarrying sectors. Employers with 5-9 employees may register voluntarily.
What is the HRD Corp levy rate in 2025?
The HRD Corp levy rate is 1% of monthly wages for employers with 10 or more employees. Employers who voluntarily register (5-9 employees) contribute 0.5% of monthly wages. The levy is calculated on basic wages, fixed allowances, and commissions.
What wages are subject to HRD Corp levy?
HRD Corp levy is calculated on employees' basic wages, fixed allowances, and commissions. Overtime pay, bonuses, gratuities, and retirement benefits are generally excluded from the levy calculation.
When must employers remit HRD Corp levy?
Employers must remit HRD Corp levy by the 15th of the following month. For example, January levy must be paid by 15th February. Late payment incurs penalties of 10% of the outstanding amount plus RM2 per day.
How do I register my company with HRD Corp?
Register online at etris.hrdcorp.gov.my. You need: SSM registration, list of employees with IC numbers, company bank details, and authorized personnel information. Registration approval typically takes 5-7 working days.
What training can I claim from HRD Corp?
Employers can claim for: approved training programs, certification courses, in-house training, coaching and mentoring programs, and overseas training (with approval). Claims are submitted through the eTRiS system within 6 months of training completion.
What is the HRD Corp claim process?
Submit claims via eTRiS portal within 6 months of training. Attach: training invoice, attendance records, training materials, and trainer credentials. HRD Corp reviews within 14-21 working days. Approved claims are reimbursed to employer's bank account.
Are there any HRD Corp levy exemptions?
Employers in non-covered sectors (agriculture, domestic services, government) are exempt. Companies under judicial management, receivership, or winding up may apply for exemption. New companies have 6 months grace period from reaching 10 employees.
What happens if I don't pay HRD Corp levy?
Non-compliance results in: 10% penalty on outstanding levy, RM2 daily penalty, legal action under PSMB Act 2001, and potential prosecution with fines up to RM10,000 or imprisonment up to 1 year, or both.