What is HRDF:
Human Resources Development Fund [Pembangunan Sumber Manusia Berhad Act 2001 (“PSMB”)] is a government agency under the Ministry of Human Resources. Currently it is known as HRD Corp.
HRD Corp’s Objective:
Promotes training and development of employees
Section 13(1) of the 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 (Section 13 (2)).
Computation of HRDF Levy:
HRDF levy = HRDF levy % x (Basic Salary + Fixed Allowances)
Industries required to register with HRDF:
Registration of HRDF:
1. Prepare all necessary documents required such as Company’s profile, Annual Return, latest EPF/SOCSO statements, Form B, Form ROC/ROB, Form 9, Form 8 and etc.)
2. Complete the Checklist “Lampiran 1: at
3. Complete “Form 1: Registration of Employer” for submission at
HRDF Levy Exemption 2021:
Under the PEMERKASA Plus, HRDF levy exemption was provided to all employers for the month of June 2021. In addition under PEMULIH, HRDF levy has been automatically extended for another two months, for all employers that were unable to operate during the MCO.
Employers of the new sectors covered under the expanded Human Resources Development Fund 2001 Act will continue to be exempted from the HRDF levy until 31 December 2021 (e.g. construction, trading and wholesale industries).
If you need further clarification, please do not hesitate to contact our tax team.
This material or communication has been prepared for the sole purpose of providing general information to our clients, and is not intended to be relied upon as accounting, tax or other professional advice. Consent has to be obtained from the firm prior to any act of republishing or circulating to the general public. While the information is considered correct at the date of publication, changes in circumstances or updates in tax ruling after the time of publication may impact its accuracy and reliability. We have not, by means of this material or communication, rendered any professional advice or services. Thus, we shall not be responsible for any losses sustained by any person who relies on this material or communication. Please refer to our tax advisors should you require our consultancy services
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