1. HRDF is broadening access to the Human Resources Development Fund (HRDF) by expanding the coverage of the PSMB Act 2001 effective 1 March 2021.
2. Employers who have received a HRDF letter have been identified as potentially liable to register with HRDF. The aforementioned employers need to respond by filling in Form 1 through the online application portal and submit it within 30 days from the date of the letter. Failure to comply within such period is an offence under PSMB Act 2001.
3. Section 13(1) of the PSMB Act stipulates that employers liable under the Act are obligated to register. The section states that “Every employer to whom this Act applies shall register with the Corporation within such time and in such manner as may be prescribed”.
4. Action can be taken to employers under the Section 13(2) of the Act if employers contravene subsection (1) as above with a fine not exceeding ten thousand ringgit or imprisonment not exceeding 1 year or both.
5. Employers of the new sectors are given an exemption of HRD levy for three (3) months under Pembangunan Sumber Manusia Berhad Act 2001 from 1 March to 31 May 2021. The registration of HRDF employers under the new industries takes effect from 1 March 2021.
Who is required to contribute under the amended PSMB Act 2001?
1. Malaysian employers across ALL SECTORS except for Federal, statutory bodies & State Government and NGO with social and welfare activities with a minimum of 10 local employees.
2. Additionally, employers across all sectors (except for Federal, statutory bodies & State Government) with 5 to 9 local employees will be given the option to register with HRDF.
What is the HRDF levy?
The HRDF levy is a mandatory levy payment collected by the HRDF imposed on employers from certain industries. The purpose is to enable employee training and skills upgrading of the Malaysian workforce.
HRDF’s registered employers will get to enjoy various offerings in relevance of training and accordance with market needs amongst other benefits which include the opportunities to utilise contributions and special funds from the government.
Training grants are open to all employers registered and/or incorporated in Malaysia who have registered with PSMB and pay the HRDF levy as to defray all or a major portion of the costs incurred in employee training. Financial assistance is given to employers that conduct training that is in line with their business operations.
How is the levy calculated?
Levy payment is applicable for Malaysian employees only. The calculation is as follows:
1% Levy Contribution (≥ 10 employees)
Levy Payment (RM) =
(Total wages / basic salaries + fixed allowance) x 1%
[Basic salary is the unpaid salary of any payment]
0.5% Levy Contribution (≤ 10 employees)
Levy Payment (RM) =
(Total wages / basic salaries + fixed allowance) x 0.5%
[Basic salary is the unpaid salary of any payment]
Read more at:
https://www.hrdf.com.my/expansion_psmb_act2001/?fbclid=IwAR3v_B1W0VrDPGn0x8Azgmm3T6u9KrxO1SkcbGSKhweEj8Dq13AExJrVD6c#section_azkun
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