What is HRDF?

What is HRDF?

The Human Resources Development Fund (HRDF) was established under the legal requirements of the Human Resources Development Act 1992 ( currently known as Pembangunan Sumber Manusia Berhad Act 2001(PSMB)).

The PSMB Act, 2001 is to provide for the imposition and collection of a human resources development levy for the purpose of promoting the training and development of employees, apprentices and trainees, the establishment and the administration of the Fund by the Corporation and for matters connected therewith.

In line with their vision, they significantly provide training and up-skilling interventions to key industries in Malaysia in keeping up with the fast-evolving business landscape and their individual company aspirations.

 

Who should register with PSMB?

All employers in the following industries are mandatory to register with PSMB. Under section 13(2), any employer who failed to register with PSMB may be fined not exceeding RM10,000 or imprisonment not exceeding 1 year or both.
The Amendment of the First Schedule comes into effect on 1 March 2021.

Amendment	Imposed rate of HRD Levy
Employers with 10 or more Malaysian employees are COMPULSORY to register with HRDF.	1 per cent of the monthly wages(Total wages or basic salaries+fixed allowances) of each of their Malaysian employees
Employers with 5 to 9 Malaysian employees are given the OPTION to register with HRDF and if they choose to register.	0.5 per cent of the monthly wages (Total wages or basic salaries+fixed allowances) of each of their Malaysian employees

 

List of industries

1. Agriculture and farming
2. Livestock and fisheries
3. Forestry
4. Construction
5. Trading and business
6. Real estate
7. Cultural, arts and entertainment
8. Fashion and clothing
9. Cosmetic
10. Recreation
11. Services
12. Automotive
13. Banking and finance
14. Insurance and takaful
15. Investment
16. Professional
17. Science and technology
18. Administration and support service
19. Education
20. Social welfare
21. Administration of organization membership
22. Wholesale
23. Household goods and services
24. Sports
25. Personal Services

 

Schemes and Benefits of HRDF

PSMB strives to be a driving force in the training and development of human resources by enhancing the knowledge and skills of the workforce via their schemes and services.
Their schemes are divided into two categories; HRDF Levy and Government Special Fund. HRDF Levy is a fund that is deposited by employers on a monthly basis. They can apply for schemes provided by HRDF to attend any programmes recognised by HRDF.
The Government Special Fund is an allocation provided by the Government to benefit employers who apply for related schemes offered by HRDF.

 

Employer Grant Schemes

Skim Bantuan Latihan (SBL)

To encourage employers to retrain and upgrade their employees’ skills in line with their operational and business requirements. Under SBL, employers are free to identify their own training needs and implement the training programme in stages.

Skim Bantuan Latihan Khas(SBL-Khas)

Skim Bantuan Latihan-Khas (SBL-Khas) is one of the major schemes under HRDF. Financial assistance in the form of training grants may be considered for all types of training programmes tailored to the needs of registered employers.

Industrial Training Scheme(ITS)

Industrial Training is for those trainees (students) that are undergoing practical training at the employer’s premises before graduating

Future Workers Training(FWT)

To train future workers with the required skills and competencies before entering employment

On Job Training(OJT)

To encourage a skilled worker/supervisor to train another unskilled or new worker to acquire skills while works alongside the skilled worker/supervisor

Computer-Based Training(CBT)

To assists employees in self-pace learning as well as flexible learning hours, training location and environment through the use of training software packages

Information Technology(IT)

To encourage employers to further retrain their employees in the field of Information technology whereby financial assistance will be provided to them to purchase desktop or laptop, webcam and internet connection(for the first year only)

Recognition of Prior Experiential Learning (RPEL)

To certify workers who do not have any formal certification but have obtained the relevant knowledge, experience and skills in the workplace based on their competency levels

Training Facilities and Renovation (ALAT)

To encourage more in-house retraining and skills upgrading of their employees by purchasing training aids for the purpose of setting up, renovating or enhancing training rooms

As 3E is a one-stop solution provider, we could help you in this matter, please contact us to know more.