What is HRDF in Malaysia?

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.

How to register HRDF with PSMB?

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 

HRDF Registration process

The application of HRDF Malaysia is simple. The basic needs are the internet. Steps on HRDF registration is provided below:

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

List of Industries

  • Personal Services
  • Sports
  • Wholesale
  • Household services and goods
  • Administration of organization membership
  • Social welfare
  • Administration and support related services
  • Technology and science
  • Investment
  • Professional
  • Insurance
  • Finance and banking
  • Services
  • Automobile
  • Cosmetic
  • Recreation
  • Clothing and Fashion
  • Arts, culture, and entertainment
  • Trading and business
  • Livestock and fisheries
  • Farming and agriculture
  • Livestock and fisheries
  • HRDF Schemes

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 Benefits

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:

  • It provides free training and analysis
  • Has a provision of levy payments which 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 with their business operations.
  • It provides advisory service to the NHRC on matters related to human resources
  • It assists the employees who are the human resource of the country to update on the relevant and specific trends in skills for jobs.
  • It’s a systematic training platform for workers.
  • It’s a claimable, upfront training that requires no payment
  • Those who are in NGO’s get free of charge training
  • Teachers or lecturers 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.

HRDF Levy Payment

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:

  • Login on the e-TRiS system through the HRDF Portal
  • Enter username next (MyCoID) and password then click on Login to proceed
  • After logging in click on ‘Application’
  • Click on ‘Levy’
  • Next, you must click on ‘Form 2 E-Slip’, you will see ‘Payment Type’ choose:
    • A. Levy
    • B. Arrears
    • C. Interest
  • Next, complete the information which is needed in ‘Levy Payment Information’ tab:
    • A. Payment Type (Levy)
    • B. Payment Levy for the Month
    • C. Number of Employee
    • D. Total Wages
    • E. Total Levy to be a pain in RM [Auto Calculate]
  • Proceed by clicking on ‘NEXT’ to the page ‘PAYMENT TO BE MADE’
    • A. Check data on-screen ‘PAYMENT INFORMATION’
    • B After checking, click on ‘NEXT’ to proceed
  • Next you must check the ‘PAYMENT DETAILS’ and fill up the ‘DECLARATION’ information whose details are provided below:
    • A.Name of Officer in Charge
    • B. Identity Card (IC) Number
    • C. Designation
    • D. Email Address
  • Choose your preferred ‘PAYMENT METHOD’ and next select ‘ONLINE PAYMENT’
  • Lastly, choose the banks you would like to use to make the payment:
    • A. Public Bank Berhad (PBB)
    • B. RHB Bank Berhad
    • C. MEPS FPX

The payment will be updated within three working days. It is advised to check payment status on the e-TRiS system.

Grant Schemes for Employers

Skim Bantuan Latihan (SBL)

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.

Skim Bantuan Latihan Khas (SBL-Khas)

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.

Industrial Training Scheme (ITS)

The trainees who are under the process of practical training can get Industrial training at the employers’ premises before graduation.

Future Workers training (FWT)

Before entering employment, this scheme provides aid for the training of required skills.

On Job Training (OJT)

Training of an unskilled worker by a skilled worker while working together and supervised by the skilled worker.

Computer-Based Training (CBT)

Encouraging employees, the learnings at their own pace with flexible learning hours, training locations, and the environment by using training software.

Information Technology (IT)

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.

Recognition of Prior Experiential Learning (RPEL)

For workers who have obtained the relevant knowledge but do not have any formal certificate based on their competency levels.

Training Facilities and renovation (ALAT)

Fund provided for the renovation of training rooms or enhancements required to encourage more in-house retraining and skills development of employees.

HRDF Claim Meaning?

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.

How to Claim HRDF

HRDF is claimable by following the following steps:

  • Log into the HRDF portal then launch the E-TRIS
  • Click on the 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 documents then click on submit
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