What is HRDF in Malaysia?

HRDF stand for Human Resource Development Fund and is managed by Pembangunan Sumber Manusia Berhad company which is under the jurisdiction of the Ministry Of Human Resource Malaysia and was established back in 1993. This was done on a careful fulfillment of the Human Resource Development Act 1992 Malaysia. Its actually a pool of funds that is human resource development levies that is collected from the workforce of service and manufacturing sectors listed in the First Schedule PSMB Act 2001.

The HRDF just as the abbreviations suggest, provide its main focus is on the human resource which is the labour force and has a duty of care to provide with accessibility to skills through training and certification. By this the human resource in Malaysia is secure work competitively in the scarce job opportunities and to bring about high income in the economy which is based on a workforce that is knowledgeable and innovative.

Vision of HRDF

The vision statement of the HRDF is “To be the human capital development authority in strengthening the economic development of Malaysia”

Mission

The mission statement of HRDF is “Spreading the human capital learning and development through strategic interventions that fulfil the current and future needs of the industry.”

Read Also: The process of Sdn Bhd Company Registration in Malaysia

HRDF registration process

The application process of HRDF Is quite simple as you just have to have access to the internet and follow the following steps:

• Log into the HRDF portal and then launch E-TRIS
• Scroll and click on application
• From the menu that pops up, click on Grant>Apply Grant
• Then select SBL from the menu’ Scheme Code >Apply
• Fill the form with accurate information and honesty
• You may also download a detailed instruction user guide and proceed to Section 6 Grants Application with Scheme Code: SBL

Who will register PSMB?

PSMB registration is limited to two classes of people. These two classes are employees and trainer provider. Employees under the PSMB Act who are specifically covered by the act must be registered and if not, the law will take its course on a penalty or imprisonment. They should visit the HRDF portal and get the registration done with the right details and submitted in due time. This was amended first in 1st April 2001and was known as The Amendment of the First Schedule. The following are employees to be registered include those in the manufacturing mining and service sector.

Manufacturing sector

• Metal product
• Mineral product
• Electrical and electronic
• Plastic
• Machinery
• Wood and wood based and cock
• Industrial ceramics
• Rubber product
• Petroleum refinery
• Glass and glass product
• Paper and pulp
• Iron and sheet
• Printing and publishing
• Textile and apparel
• Leather
• Tobacco
• ceramic
• Footwear

Mining and quarrying service

• Petroleum and gas extraction
• Mineral and some stone quarrying

Service sector

• Direct selling
• Warehousing services
• Hotel industry
• Freight forwarding
• Pert services
• Energy
• Hypermarket,supermarket,departmental stores
• Postal or courier
• Security service
• Advertising
• Computer services
• Training
• Food and beverage service

The requirement of new registration on trainer provider is that they will only make their submission via

the PMBS E-TRIS Online Application and must fulfil the terms and conditions provided.

Benefits of HRDF

The HRDF Malaysia is quite beneficial to the citizens and specifically the human resource and economy of the country. Here are some benefits of HRDF:

• It provides free training need analysis.
• Has a provision of levied payments which are calculate during taxation as allowable expenses under the Income Tax Act 1967
• Provides financial assistance to employees who conduct the training which is in accordance to their business operations.
• It provides advisory service to the NHRC on matters related to human resource
• It assists the employees who are the human resource of the country to updated on the relevant and and specific trends in skills for jobs.
• It’s a systematic training platform for workers
• It’s a claimable,upfront training program that requires no payment
• Those in NGOs get free of charge training
• Teachers or lectures get half prices off data science training
• As the human resource is well trained it provides them with multiple skills to meet the markets demand.

What is meant of Human Resources Development levy?

This is a compulsory or mandatory payment that is collected by HRDF which is imposed on certain employees of industries by the government and its purpose is to aid in employee training as well as upgrading their skills. Those eligible for this mandatory payment are those in sectors registered under the PSMB Act 2001 Section 13(1).its at the rate of 1.0% of their monthly wages and is collected through HRDF collection agents which are the Public Bank Berhad and RHB Bank Berhad. Payments are not limited to this as you may also pay via ESLIP that is accessible via ETRIS.

How to claim HRDF?

Payments of training grants are only paid after submission of claims. The forms are only to be submitted by employee who has completed the training programmed and should be done online which should be done quite accurately in order to avoid delays or rejects. It’s also important to note that the claim form is to be signed by a relevant authorized officer and claims are only payable after having taken full training and paid out all fees. The trainee also should have undertaken at least 75% of the training course and passed the relevant examinations if need be.

HRDF is claimable by following the following steps:

• Log into the HRDF portal then launch the E-TRIS
• Click on Application icon
• After the application click you now click on the claim icon
• Then choose between submission of claims with grants or submission of other claims.
• Ensure that you do the online submission with the relevant supporting document then click submit.

Who must register with PSMB?

Registration of PSMB is compulsory by law under Section 13(1) of the PSMB ACT 2001 which stipulates that each employee who is covered under the act must register with PSMB within such time or manner that is prescribed. It goes ahead and says that any employee who is found not to have registered with PSMB will face it under a court of law and will be fined a fine that doesn’t exceed RM 10,000 or face imprisonment or both. Compliance with the law is quite key in order to stay clean on your records as this may haunt you as you go seeking a job later on