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%

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How to calculate HRDF Levy?

Here's the formula used to calculate HRDF Levy:

HRDF Levy = HRDF 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 HRDF levy is:

(RM5,000 + RM300) * 1% = RM53.00


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Here's how you can set up HRDF Levy Rate in Talenox:

Under Profiles > Company Details > Payroll Details, scroll down to HRDF Levy Rate and choose the following options:

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Once you have processed payroll for a specific month, HRDF amount will be auto-calculated and reflected under Payroll Settings > Month Total (Month/Year) > Statutory Summary tab:

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