Human Resources Development Fund (HRDF)
The Human Resources Development Fund (HRDF), now known as the Human Resources Development Corporation (HRD Corp), is a Malaysian government initiative designed to encourage employers to invest in the continuous development of their workforce. As of 2025, compliance with HRD Corp regulations involves several key aspects:
1. Employer Registration and Levy Contribution
- Mandatory Registration: Employers in specific sectors with 10 or more Malaysian employees are required to register with HRD Corp and contribute 1% of each employee’s monthly wages as a levy. oegroup.com.my
- Optional Registration: Employers with 5 to 9 Malaysian employees have the option to register voluntarily, contributing 0.5% of each employee’s monthly wages. oegroup.com.my
2. Levy Payment Deadlines
Employers must remit the HRD levy by the 15th of the following month. For example, levies for January 2025 salaries should be paid by 15th February 2025. ajobthing.com
3. Utilization of Levy for Training
Contributed levies can be utilized to fund various employee training programs, including:
- Internal Training: Conducted within the organization by internal trainers.
- External Training: Provided by external training providers.
- Certification Programs: Leading to professional certifications relevant to the industry.
Employers can claim reimbursements for training expenses, such as course fees and training materials, based on the Allowable Cost Matrix provided by HRD Corp. majikan.my
4. Compliance and Governance
HRD Corp is committed to maintaining high standards of compliance and corporate governance. Employers are expected to adhere to established guidelines and policies to ensure the integrity of training programs and the proper utilization of funds. hrdcorp.gov.my
5. Training Provider Requirements
Training providers must comply with HRD Corp's guidelines, including obtaining necessary accreditations and adhering to quality standards in training delivery. This ensures that the training programs meet the required benchmarks and are eligible for levy claims. hrdcorp.gov.my
By adhering to these regulations, employers can effectively contribute to the development of Malaysia's human capital, enhancing productivity and competitiveness in their respective industries.