HRDF: What Malaysian Employers Need to Know
You've probably heard of the term HRDF or HRD Corp, but do you know if your company actually needs to contribute? How is the HRD Corp levy calculated, and who needs to register?
The HRD Corp levy isn't just another compliance requirement. It can also help businesses invest in their employees and build a stronger, more skilled workforce. Here's what Malaysian employers need to know.
What Is HRD Corp?
In 2021, Human Resources Development Fund (HRDF) rebranded itself to Human Resources Development Corporation or HRD Corp. This name change also adopted an expansion of responsibilities, direction and mission as the nation's workforce development body.
HRD Corp manages employer funds through monthly levy to support employee training programs.
This simply means:
Employer contribution → Employee training → Better skills + Stronger business growth
What Are the Benefits of HRD Corp?
HRD Corp helps your business invest in your people by making training more accessible with the rise of productivity and competition in the workforce.
The levy allows employers to invest in employee development while reducing the cost of training. This means your financial burden is reduced while you build your most valuable business assets, your people.
HRD Corp supports:
Identify training needs to align with business objectives
Keep you updated on grants, incentives and training programs
Promote a learning culture within your organisation
Reduce training costs through available funding
HRD Corp Registration
It is mandatory for you to contribute to the levy should there be 10 or more Malaysian employees, while it is only voluntary if there are between 5 to 9 Malaysian employees.
As easy as 1-2-3, the registration process is:
Check Employer Eligibility & Register Confirm your industry criteria on the e-TRiS portal then “Register New Employer” |
Prepare and Submit Documents Submit your business registration documents and employee details on e-TRiS portal |
Wait for Approval from HRD Corp Wait for HRD Corp for employer code, levy start date and login credentials |
If you're unsure about the process and levy, check the latest updates on the HRD Corp website or seek professional HR advice! See more details below on how we can help your business.
HRD Corp Levy Calculation and Claims
The HRD Corp levy is calculated based on the eligible employees' monthly wages. The contribution rate is Monthly Wages + Fixed Allowances:
1% of monthly wages for 10 or more Malaysian employees
0.5% of monthly wages for 5-9 Malaysian employees
Claiming Training Expenses
To claim training expenses using your levy funds, employers must submit the required supporting documents through the appropriate HRD Corp claim process. Depending on the claim scheme, these documents may include:
Training registration details
Attendance records
Invoices and receipts
Proof of payment
Training completion certificates, where applicable
Submitting complete and accurate documentation helps ensure claims are processed smoothly with minimal delays.
What Happens If Employers Do Not Comply?
Similarly to the EPF, SOCSO, EIS and PCB monthly payments, HRD Corp levy also follows the same cycle on the 15th day of the following month. Should the 15th fall on a public holiday, the deadline is on the last working day before the 15th.
These are some consequences should you fail to comply the levy:
Late payment | 10% yearly interest, calculated daily |
Failure to register (Mandatory) | Fine up to RM20,000 or imprisonment up to 2 years or both |
Failure to pay levy | Fine up to RM20,000 or imprisonment up to 2 years or both |
Failure to claim within 2 years | Forfeit levy balance above RM10,000 |
By the way, this is the best time to learn more about How To Claim SOCSO Benefits. It's a comprehensive guide that will help not just your employees but you too as a business owner!
Frequently Asked Questions
1. Who needs to pay the HRD Corp levy?
It is mandatory for Malaysian employers with 10 or more Malaysian employees to register and pay a 1% monthly levy on wages plus fixed allowances, while those with 5–9 employees may register voluntarily and pay 0.5%.
2. Do SMEs also get HRD Corp benefits?
Yes. Eligible SMEs can use HRD Corp supported trainings for technology adoption, process improvement and employee upskilling to stay competitive
3. What training can be claimed under HRD Corp?
Since 2026, online training, e-learning platforms, LMS subscriptions, digital learning, as well as team-building programmes are claimable. This includes cybersecurity, data analytics, digital marketing, programming and other tech upskilling.
4. Is HRDF the same as HRD Corp?
Yes. HRD Corp was previously known as HRDF. In June 2021, the Human Resources Development Fund (HRDF) was officially rebranded, expanding its role beyond levy collection to include career coaching, placement services, and digital training platforms.
5. What can be claimed under HRD Corp?
Employers may claim eligible expenses for approved training programs, including training fees, certification or assessment fees, and other claimable costs under the applicable HRD Corp grant scheme.
6. How many employees are required to register for HRD Corp?
Employers in specified industries with 10 or more Malaysian employees are required to register. Certain employers with 5 to 9 Malaysian employees may register voluntarily, subject to HRD Corp's eligibility requirements.
7. How much can I claim from HRD Corp?
The claimable amount depends on the type of grant, available levy balance, and HRD Corp's funding guidelines. Employers should refer to the applicable grant scheme for the maximum claimable amount.
8. Can individuals claim HRD Corp?
No. HRD Corp claims are submitted by registered employers. Individual employees cannot claim training costs directly from HRD Corp.
Final Thoughts: Compliance That Supports Growth
The HRD Corp levy is more than just a statutory contribution. It allows employers to invest in employee development while reducing the cost of training. Employers can use their levy funds to claim approved training expenses that meet HRD Corp's requirements.
At Synergy Outsourcing, we help Malaysian businesses simplify HR compliance, payroll, and employee management so you can focus on growing your business with confidence.
If you would like to learn more about how we can support your HR compliance needs, call us at 📞+6 010-277 0718 or email us at 📩 info@synergy-outsourcing.com
