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What is HRDF

Understanding HRDF

The Human Resources Development Fund (HRDF) is like an investment in human capital in enhancing workforce skills and capabilities.

Applications of the collected levy

The fund is then utilized to provide training and up-skilling for employees, offering companies subsidized training opportunities to ensure their workforce remains competitive.

This initiative helps employers reduce training costs and fosters a culture of continuous learning within organizations. By participating in HRDF programs, companies can significantly enhance their employees' skills, driving productivity and efficiency across various sectors.

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Class of employers which need to register for HRDF

Businesses or employers with 10 or more Malaysian employees are required to register for HRDF contribution

Number of employees Imposed rate of HRDF Levy
10 or more Malaysian employees 1% of the monthly salary of each Malaysian employee
5 to 9 Malaysian employees 0.5% of the monthly salary of each Malaysian employees

List Of Industries Covered Under the First Schedule Of PSMB Act 2001

According to Ministry of Human Resource Malaysia, the mandatory business categories includes:

Agriculture and farming Storage Livestock and fisheries
Delivery Forestry and logging Food and beverages
Mining and quarrying Information system Manufacturing and production
Communication and multimedia Trading, business and wholesale Broadcasting and films
Construction Investment Supply
Co-operative societies Property Professional
Culture, arts and entertainment Science and technology Fashion and clothes
Research and development Cosmetic Science and technicality
Tourism and recreation Administration and support service Service
Education Franchise Medical and health facilities
Electricity Social welfare Oil
Administration of organisation membership Water Sewerage SMEs- Small and medium enterprises
Management of solid waste, liquid and gaseous and remedial Household goods and services Automotive
Sports Transportation Energy and natural resources
Repair and maintenance Personal services  
Source: Expansion of the Pembangunan Sumber Manusia Berhad Act 2001

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Approved Digital Solution Under HRDF
Pre-Approved Digital Solution Under HRDF
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Available Pre-Approved Solution under HRDF