What is the eligibility rate of levy payment for employees registered under HRDF?

Modified on Mon, 25 Sep, 2023 at 11:45 AM

The registration of employers with HRDF is stipulated in the Pembangunan Sumber Manusia Berhad Act, 2001 (PSMB Act, 2001).

Generally, if the company falls under the Manufacturing, Services, or Mining & Quarrying sector (based on PSMB Act 2001) and the company employs a minimum of ten (10) Malaysian employees, it is compulsory to register with Human Resource Development Fund (HRDF). Whereas if the company falls under the above mentioned sectors but only employs five (5) to nine (9) Malaysian, the companies are given an option to register with HRDF.

The eligibility rate of levy payment for employees registered under HRDF rate can be explained by using the following table:

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Additional Info:

1. How to calculate HRDF contribution?

Answer:

a. For the company with 10 or more Malaysian employees, the HRDF will be calculated using this formula:

b. For the company with 5-9 Malaysian employees, the HRDF will be calculated using this formula:

2. If my company just registered with HRDF but does not pay the levy, what is the consequence?

Answer:

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.

Source: https://www.hrdf.com.my/employer/