HRDF levy is a mandatory levy payment collected by the Pembangunan Sumber Manusia Berhad ( PSMB) imposed on employers. This is to encourage employers covered under the Pembangunan Sumber Manusia Berhad Act 2001 to retrain and upgrade the skills of their local employees, apprentices and trainees in line with their business needs and the development strategy of their company.
Who should register with HRDF/PSMB?
Every employer who is covered under the Act is required to register with PSMB within a specific time and manner as prescribed in Section 13(1) of the PSMB Act 2001.
Any employer who is convicted for not registering with PSMB may be fined up to an amount not exceeding RM10,000 or face imprisonment up to a year, or both.
Do refer to this link to find out which industries are covered under the Act.
Under the Services and Manufacturing sectors, the eligibility criteria and rate of contribution are as follow:
- ≥ 10 Malaysian Employees (mandatory to register): 1%
- 5– 9 Malaysian Employees (given option to register): 0.5%
Under the Mining & Quarrying sector, below is the eligibility criteria and rate of contribution:
- ≥ 10 Malaysian Employees (mandatory to register): 0.5%
- 5– 9 Malaysian Employees (given option to register): 1%
How to process HRDF/PSMB in Talenox?
Under Profiles > Company Details > Payroll Details, scroll down to HRDF Levy Rate and choose the following options: