What is HRDF
The Human Resources Development Fund (HRDF) is like an investment in human capital in enhancing workforce skills and capabilities.
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.
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 |
According to Ministry of Human Resource Malaysia, the mandatory business categories includes:
Industry | ||
---|---|---|
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 |