Q1 : Who should register with Human Resource Development Fund?

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As of 1 March 2021, HRDF has been expanded to include ALL INDUSTIRES.
The only exemptions are for federal statutory bodies, state government and NGOs with social welfare activities.
Compulsory Registration : Malaysia employers with a minimum of 10 employees.
Optional Registration : Malaysian employer with 5 to 9 local employees.

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Q2 : Is the Human Resources Development (HRD) levy deducted from an employees’ employee’s wages?

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No. Employers are not permitted to deduct the wages of employees under any circumstances for the payment of the levy.

 

​Q3 : Is the company director considered as an employee?

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If the company director is paid a salary, he/she is regarded as an employee of the company, whereas a director who only accepts director fees is not considered an employee.

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​Q4 : Is it compulsory for an employer to register?

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Section 13(1) of the PSMB Act 2001 stipulates that every employer who is covered under the Act is required to register with HRDF within such time and manner as may be prescribed.

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​Q5 : If my company do not want to register, what is the consequence?

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Any employer who is convicted of not registering with HRDF may be fined up to an amount not exceeding RM10, 000 or face imprisonment up to a year, or both (Section 13 (2)).

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​Q6 : If my company just registers with HRDF but does not pay the levy, what is the consequence?

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Failure of payment before the stipulated time will result in;

• Fine not exceeding RM20, 000.00 (Ringgit Malaysia Twenty Thousand) or imprisonment for a term not exceeding two (2) years or both (on conviction).

• Yearly interest of 10 per cent in respect of each day of default or delay in payment.