Information on Claiming HRDF for Malaysians & Malaysian Companies
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All Public and Corporate Training Workshops conducted by Corporate Strategies International [CSI] Pte Ltd are eligible for HRDF claims under the Skim Bantuan Latihan (SBL) Scheme, subject to prior application to HRDF by the employers.
The Skim Bantuan Latihan (SBL) Scheme
(information extracted from http://www.hrdf.com.my )
For programmes/courses under the SBL Scheme, prior approval must be obtained from the Council's Secretariat. Under the scheme, employers are free to identify their own training needs and formulate training programmes to retrain and upgrade their employee's skills in line with their operational and business requirements. Training can be conducted either on-the-job, off-the-job or a combination of both to suit the requirements of enterprises. Training programmes can be carried out by their own trainers or where there is a lack of expertise, by external trainers. Where local expertise is not available, enterprises can also engage qualified trainers from overseas. To qualify for training grants, training programmes must be structured and have :-
- Specific training objectives.
- Specific training activities or lesson plans.
- Guided instructions by qualified instructors/trainers.
- Assessment to determine attainment of training objectives.
How To Apply
- Fill in form PSMB/SBL/1/01. (download the form from http://www.hrdf.com.my/wps/portal/PSMB/MainEN/Docu mentsCenter/Form/ )
- Attach relevant supporting documents:-
- Quotation for Course Fee
- Trainer's biography
- Course Contents
- Other related documents, where applicable.
- Submit completed form to PSMB before the commencement of the training. (Application forms must reach the PSMB office at least one (1) day before training commences).
- Approval or rejection letter will be given within 2 weeks from the date of receipt of application.
How To Claim
- Fill in form PSMB/T/1/01. (download the form from http://www.hrdf.com.my/wps/portal/PSMB/MainEN/Docu mentsCenter/Form/ )
- Attach relevant supporting documents:-
- Attach relevant supporting documents:-
- Receipts
- Payment vouchers
- Other related documents, where applicable.
Submit completed claim form to the PSMB upon completion of training for reimbursement of "allowable costs"
Note : Copies of the documents should be certified according to the PSMB's format.
General Guidelines on the Human Resource Development Fund
Objective
The objective of these guidelines is to explain the Human Resources Development Fund (HRDF) to employers in the manufacturing and services sector who are registered with PSMB and contributed to the Human Resources Development levy under the Pembangunan Sumber Manusia Berhad Act, 2001.
Function
There are three main functions of PSMB:
(a) To assess and determine the types and extent of employees’ training and retraining in keeping with the human resources needs of industries;
(b) To promote and stimulate manpower training; and
(c) To determine the terms and conditions under which any financial assistance or other benefits are to be given.
Background
In the quest to attain the status of a Developed Country by the year 2020, greater emphasis must be given to the retraining and skills upgrading of the workforce. This is necessary not only to increase the knowledge and skill intensity of the workforce, but also to equip them with specialised and up-to-date skills as production techniques become increasingly automated and complex. Retraining and skills upgrading is also of paramount importance to enhance the quality of the workforce so that it is versatile and adaptable to a changing technological and industrial environment.
A human resources development policy that focuses on companies and their workforce shall enable them to increase workers’ productivity, efficiency, value-added operations and their competitiveness both in the domestic and international market.
The HRDF will also foster workers’ flexibility and job security through the process of retraining and skills upgrading. This is particularly significant as Malaysia ’s economy is dynamic and open which is bound to be exposed to the unexpected and technological changes. Arising from this; most of the current jobs need to be restructured and sometimes become obselete.
Pembangunan Sumber Manusia ACT 2001
The Pembangunan Sumber Manusia Berhad Act, 2001, was passed in the Parliament vide its October/November sitting in 2000. The Act provides for the establishment of the Board of Directors of the corporation comprising of ten representatives of the employers, three representatives of the government agencies and public services that responsible for the human resource development/training, a representative of the Ministry of Human Resources, a representative of the Ministry of Finance, the Chief Executive of PSMB and two independent members, whose in the opinion of the Minister of Human Resources, will be able to contribute to the work of the Corporation.
Coverage
When the HRDF was implemented on 1 January 1993 , the Act only covered employers with 50 employees and above in the manufacturing sector. With effect from 1 January 1995 , it was extended to employers with 10 to 49 employees and with a paid-up capital of RM2.5 million and above. It is mandatory for this category of employers to register with PSMB and pay the HRD levy at the rate of one per centum of the monthly wages of their employees.
With effect from 2 August 1996 , employers having 10 to 49 employees and a paid-up capital of less than RM2.5 million were given options to register with PSMB. Once registered with Corporation, they are liable to pay the monthly HRD levy at the rate of 0.5 per centum of the wages of their employees.
After much consultation held with the selected industries in the services sector, the HRDF was extended to the hotel, tour operators (in-bound tours only), telecommunications, computer, shipping, aviation and advertising industries as well as freight forwarders and the postal services including courier services with effect from 1 January 1995. In line with the government’s intention to make Malaysia as the regional centre for higher education, the HRDF was extended to cover private higher education with effect from 17 February 2000 . Effective from the same date, the HRDF was also extended to the training and energy industries. Employers from these industries with 10 employees and above are liable to register with PSMB.
With effect from 1 January 2005 , the HRDF was extended to eight industries under the services sector including direct-selling, port services, engineering support and maintenance services, research and development, warehousing services, security services, private hospital services and hypermarket, supermarket and departmental store services. Employers from these industries with 10 or more employees are liable to register with PSMB. However, hypermarkets, supermarkets and departmental stores are liable to register provided only if they have 50 or more employees.
Under Regulation 4(1) of the Pembangunan Sumber Manusia Berhad (Registration of Employers and Payment of Levy Regulations 2001), they have 30 days to register with PSMB form the date they are liable.
An employee is defined as any citizen of Malaysia who is employed for wages under a contract of service with an employer, irrespective of whether they are permanent, part-time or on contract, but does not include any domestic servant .
Human Resources Development Levy
Section 14(1) of the Pembangunan Sumber Manusia Act, 2001, imposes on every employer to whom the Act applies a HRD levy in respect of each of his employee at the rate of one per centum of the monthly wages of the employee. Under Regulation 7 of the Pembangunan Sumber Manusia Berhad (Registration of Employers and Payment of Levy) Regulations 2001, an employer who is liable to pay the HRD levy shall pay those levies for the first and subsequent months’ wages commencing from the date the employer becomes liable.
The payment of the HRD levy is the responsibility of the employers. The wages of employees are not permitted to be deducted under any circumstances for the payment of the levy.
Wages
Wages has been defined under Section 2 of the Pembangunan Sumber Manusia Berhad Act, 2001 and Employer Circular No. 1/93.
Eligibility For Training Grant
Employers registered and/or incorporated in Malaysia who have registered with PSMB and paid the HRD levy within a month after registration are eligible to apply for training grants (financial assistance) to defray all or a major portion of the “allowable costs” of training their employees. Training must be in the area of direct benefit to their business operations. Financial assistance is, therefore, not given to individuals who enroll and finance their own training programmes whether partially or fully and later request their employers for sponsorship. Neither is the financial assistance given to the employers who bear the cost of training after the successful completion of training by their employees.
As provided under Section 20(5) of the Act, any employer who is eligible to receive or in receipt of any financial assistance provided under the Act shall be disqualified from receiving such financial assistance if he is in default of any payment of the levy and shall remain disqualified until such time that all the outstanding payments including interests had been fully paid.
The payment of training grants will be subject to the terms and conditions imposed by PSMB from time to time and may be withdrawn by the Corporation for any breach of any of the terms and conditions imposed.
To be eligible for training grants under the HRDF, trainees must be employees who are MALAYSIAN CITIZENS.






