WHAT IS INDUSTRY EXPANSION IN HRDF?
Mandated by the Government of Malaysia in 11th Malaysia Plan (RMK-11) under Strategic Thrust 5 – Focus Area C: Strengthening the Lifelong Learning for Skills Enhancements where the access to Human Resource Development Fund (HRDF) is to be expanded to all industries.
In line with the mandate, a progressive move has been made to improve its regulatory and funding support by broadening the access of the Human Resources Development Fund (HRDF). The action is to expand the coverage of the PSMB Act 2001 effective on 1 March 2021. The RMK-11 has identified high-quality human capital to propel the country’s future economy and targets for 35% of the workforce to comprise skilled workers. The expansion is expected to increase the number of employees that are eligible for training under HRDF from the current 2.5 million in 2020 to 6.1 million from March 2021.
The expansion is a pivotal step towards the overall development of Malaysia’s human capital; assisting towards increasing the number of skilled local workers that are responsive to business needs with the Ministry spearheading the mission. To ensure these aspirations happened, the coverage of the PSMB Act 2001 has been expanded with effect from 1 March 2021 by streamlining its eligibility criterion to Malaysian employers across all industries as specified below.
Employers of the new sectors are given an exemption of HRD levy for three (3) months under Pembangunan Sumber Manusia Berhad Act 2001 from 1 March to 31 May 2021. The registration of HRDF employers under the new industries takes effect from 1 March 2021.
HOW TO REGISTER?
Follow this guideline on infographic to register
HOW IS THE HRDF LEVY CALCULATED?
There are two categories of employer stated in PMSB Act 2001 which both has different rate of HRDF.
10 OR more Malaysia citizenship employee (Compulsory to register)
- 1% of the wages for all industries.
5 to 9 Malaysia citizenship employee (Have an option to register)
- 0.5% of the wages for all industries.
WHEN I SHOULD REGISTER FOR HRDF?
You need to register for HRDF before 30 April 2021.
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