HRDF levy is the mandatory levy payment imposed by the Human Resources Development Fund for all sectors of industry. This levy is to ease the employee training and upskilling for the Malaysian workforce.
Who should register with HRDF
Starting from 1st March 2021, all companies are required to register with HRDF. It is compulsory for a company that has more than 10 employees and optional for a company that has 5 to 9 employees.
Should the company is not registered with HRDF, it can be fined up to RM10,000 or faced imprisonment for up to a year.
HRDF levy calculation
HRDF levy = (Total wages or salary) * Levy %
There are 2 types of levy %, which are companies with more than 10 employees and companies with 5 to 9 employees.
|Number or employee||HRDF levy calculation|
|More than 10 employees||Total wages * 1%|
|5 to 9 employees||Total wages * 0.5%|
You can refer to this article to know more on the HRDF levy calculation