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 calculate HRD Levy?
Here's the formula used to calculate HRD Levy:
HRD Levy = HRD Levy % x (Basic Salary* + Fixed Allowances**)
*Wages Impose with levy are basic salaries and fixed allowances including paid leave and wage arrears. The basic salary is the salary paid before making any deductions such as EPF / SOCSO / ZAKAT / PCB and others.
** Fixed Allowance = allowance paid regularly and are unchanged on a monthly basis.
As an example, if you are contributing 1% and your employee earns RM5,000 plus a fixed allowance of RM300, the calculation for the employee's HRD levy is:
(RM5,000 + RM300) * 1% = RM53.00
Here's how you can set up HRD Levy Rate in Talenox:
Under Profiles > Company Details > Payroll Details, scroll down to HRD Levy Rate and choose the following options:
Once you have processed payroll for a specific month, HRD levy amount will be auto-calculated and reflected under Payroll Settings > Month Total (Month/Year) > Statutory Summary tab: