HRD CORP CLAIMABLE TRAININGS

HRD Corp (Human Resource Development Corporation) is an agency under the Ministry of Human Resources Malaysia that aims to enhance the skills and productivity of the Malaysian workforce through various training and development initiatives.

All employers in Malaysia who contribute to the Human Resources Development Fund (HRDF) are eligible to register with HRD Corp. 

Registered employers can access funding for employee training programs, participate in various development programs, and improve their workforce's skills at subsidized rates.

Human Resource Development Fund (HRDF) is a fund established under the Pembangunan Sumber Manusia Berhad (PSMB) Act 2001. The primary objective of the HRDF is to promote and facilitate training and development for Malaysian workers, thereby enhancing their skills and capabilities to meet industry needs.

HRD Corp, through the PSMB Act 2001 imposes the collection of HRDF levy through legal authority on liable employers in Malaysia. In return, the employers will receive financial assistance from the HRDF levy paid for training and development of their local employees. By actively utilising the levy contributions, the employers are able to:

1) Improve the quality, productivity and competitiveness of their employees. Investing in up-skilling your employees is important to survive in the current and future competition of the local and international market. If the companies aspire to export their products and services, they must prepare their workforce to meet the regional and global market’s requirements. The employers are able to choose different training schemes provided by PSMB in order to suit their business and HR strategies.

2) Through Training Grant applications, employers are able to send their employees to training programmes that are required by the industry, meet industry-specific requirement and standards, for internal career development, succession planning or performance reward.

3) With the HRDF levy, the registered employers can establish a systematic and structured training plan for their workers. A training plan is a requirement for ISO-certified organisations.

4) Gain access to continuous assistance from HRD Corp to help and support the HR Department and the employers themselves. Services include:

• Advisory and consultancy services from qualified consultants on all aspect of human resource management. The services are either on complimentary basis or charged a minimal cost to HRD Corp registered employers.
• Advisory services from HRD Corp officers on levy utilisation, registration or de-registration issues.
• Dissemination of news, circulars, events or any updates via HRD Corp e-mail, portal, Facebook, Twitter, Instagram, LinkedIn and/or letters.

5) Gain access to special funds from the Government to HRD Corp for specific purposes from time to time. For example, to improve the productivity and competitiveness of Small Medium Enterprises (SMEs), the Government may provide training incentives to the employers; to produce more skilled young workers after they leave school and the Government may offer the Apprenticeship Training Fund Scheme under the minimum wage.

6) Opportunity to be nominated for the prestigious Human Resource Development Award as national recognition to employers who actively pay and utilise the HRD levy.

7) Levy payment is considered as allowable expenses under the Income Tax Act, 1967. Hence, HRDF levy is value-for-money for the registered employers.

Training programs that focus on skill enhancement relevant to your industry are generally eligible. This includes workshops, seminars, courses offered by accredited trainers or institutions.

Employers with ten (10) or more employees in specified sectors must contribute to HRDF.  

Section 13(1) of the PSMB Act 2001 stipulates that every employer who is covered under the Act is required to register with HRD Corp within such time and manner as may be prescribed. 

Any employer to whom this Act applies and chose not to register with HRD Corp shall on conviction be liable to a fine not exceeding RM10,000 or to imprisonment for a term not exceeding one year or to both (Section 13(2)).

 Failure of payment before the stipulated time will result in;

• Fine not exceeding RM20, 000.00 (Ringgit Malaysia Twenty Thousand) or imprisonment for a term not exceeding two (2) years or both (on conviction).
• Yearly interest of 10 per cent in respect of each day of default or delay in payment.