All Collections
Guides for Malaysia Users
Payroll Features
How to set up & process HRD Levy/PSMB in Talenox?
How to set up & process HRD Levy/PSMB in Talenox?

Add /Calculate HRD Levy Rate

Nicholas avatar
Written by Nicholas
Updated over a week ago

Under the Services and Manufacturing sectors, the eligibility criteria and rate of contribution are as follow:

  • β‰₯ 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:

  • β‰₯ 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:

Did this answer your question?