HRDF stands for Human Resource Development Fund, click here to check, and is managed by Pembangunan Sumber Manusia Berhad company. Now HRDF meaning is clear and it is under the jurisdiction of the Ministry of Human Resource Malaysia which was established in 1993. This was done on a careful fulfilment of the Human Resource Development Act 1992 Malaysia.
Pembangunan Sumber Manusia Berhad Act, 2001 was established for the collection of human resource development. Also, it promotes the training and development of employees, the starting and administration of the Fund by the Corporation, and for further matters required.
With this vision intact, they provide adequate training and up-skilling interventions to major industries in Malaysia in keeping up with the fast-evolving business landscape and their unique company motivations.
It is mandatory for HRDF registration with PSMB for the following industries we will give below. Any employer failing to register with PSMB is entitled to a fine not more than RM10000 or imprisonment which does not exceed 1 year under section 13.
CATEGORY | Criteria |
1% Mandatory | If you have more than 10 employees |
.5% Voluntary | If you have between 5-9 Malaysian Employees |
The application of HRDF Malaysia is simple. The basic needs are the internet. Steps on HRDF registration is provided below:
PSMB establishment thrives to deliver a workforce with skills, training, and development by maximising the knowledge and skills of the workforce. They utilize the Human Resource Development Fund (HRDF). They have schemes of 2 categories. HRDF Levy and Government Special Fund. HRDF Fund deposits monthly by the employers.
They can apply for schemes that are given by the HRDF for any programs recognised by HRDF. The allocation of funds by the government is the Government Special Fund. This benefits the employers who apply for similar schemes offered by HRDF Malaysia.
HRDF Malaysia is quite beneficial to the citizens especially for the human resource and economy of the country. Some of the benefits are provided below:
HRDF Levy payment must be made within 15 days of the month it is due. It states under the Regulation 8 (1) of the Pembangunan Sumber Manusia Berhad regulation, 2001.
The steps of HRDF payment is provided below:
The payment will be updated within three working days. It is advised to check payment status on the e-TRiS system.
This allows the employers to upgrade and retrain the employees’ skills for the business requirements. Under SBL, employers are free to identify their own needs for training and implement the training program in stages.
One of the major schemes under HRTF is Skim Bantuan Latihan-Khas (SBL-Khas). Training grants are provided with financial assistance for all types of training programs for registered employers.
The trainees who are under the process of practical training can get Industrial training at the employers’ premises before graduation.
Before entering employment, this scheme provides aid for the training of required skills.
Training of an unskilled worker by a skilled worker while working together and supervised by the skilled worker.
Encouraging employees, the learnings at their own pace with flexible learning hours, training locations, and the environment by using training software.
To encourage employers to further retrain their employees where IT is required. Financial assistance will be provided for the purchase of computers and other peripherals for the first year only.
For workers who have obtained the relevant knowledge but do not have any formal certificate based on their competency levels.
Fund provided for the renovation of training rooms or enhancements required to encourage more in-house retraining and skills development of employees.
Payments of the training grants are only paid after successful submission of claims. The forms are to be submitted by the employee who has completed the training program and should be done online and with 100% accuracy. This will avoid further delays or rejects.
It’s also important to note that the claim form is to be signed by a relevant authorised officer and claims are only payable after having taken full training and paid out all fees. The trainee should have also undertaken at least 75% of the training course and passed the relevant examination if need be.
HRDF is claimable by following the following steps: