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.
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 |
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