HRDF Malaysia 2026 (HRD Corp): Complete Employer Guide to Registration, Levy, and Training Claims

What Is HRDF (HRD Corp) and Why It Matters in Malaysia

The HRDF (now officially HRD Corp) is a government statutory body under the Ministry of Human Resources, which is currently known as Pembangunan Sumber Manusia Berhad Act 2001 (PSMB).

The HRDF Malaysia collects a mandatory levy from registered employers and uses these funds to finance the training and development of the Malaysian workforce.

HRDF vs HRD Corp – What’s the Difference?

You’ll frequently hear both terms used HRDF or HRDC. The key is to understand that they refer to the same organisation. The organisation was formally known as HRDF (Human Resources Development Fund).

In 2021, it underwent a corporate identity transformation and was rebranded as HRD Corp (Human Resources Development Corporation).

While the name has changed, the fundamental function remains the same. The term HRDF still widely refers to the fund and the levy system, while HRD Corp is the body that manages it.

What Is the Purpose of HRDF?

The core mission of HRD Corp is to enable employers to elevate the competency of their local employees.

The purpose of HRDF training is to facilitate skills development, improve business performance, and reduce Malaysia's reliance on foreign labour by fostering a highly skilled local workforce.

The available HRDF scheme grants are a direct incentive for companies to invest in their people without any significant financial burden.

Who Must Pay HRDF and Register with HRD Corp?

Basically, whether you have to register and pay the HRDF levy depends on your company's size in Malaysia.

• • Mandatory Registration: Employers with 10 or more Malaysian employees are compulsory to register and contribute.
• • Optional Registration: Employers with 5 to 9 Malaysian employees can register voluntarily to access training grants.

Exempted Entities: Government agencies, statutory bodies, local authorities, and non-profit organizations (NGOs) are generally exempted from mandatory registration.

HRDF Registration Process (Step-by-Step)

Here's a simple step-by-step guide to help you register your company and access employee training benefits.

Step 1: Check Employer Eligibility

Before registering, ensure your company falls under the First Schedule of the PSMB Act 2001 (Amended 2021). As of the latest expansion:

• • Employers from all industries with 10 or more Malaysian employees are mandatory contributors.
• • Employers with 5 to 9 employees are optional contributors.

Refer to: PSMB Act First Schedule – Industry Coverage

Step 2: Prepare Required Documents

Ensure you have the following mandatory documents ready:

1. 1. Form 1 – Employer Registration Form (downloadable from HRD Corp portal).
2. 2. Company Registration Documents:
   • a. Certificate of Incorporation (Form 9 / Section 17)
   • b. Business Registration (SSM / Form D)
3. 3. Latest EPF Statement (Form A) – Proof of employee count.
4. 4. Company Profile (Optional but recommended).
5. 5. Authorisation Letter (if submitted by a third party or external consultant).

Step 3: Submit Online via HRD Corp e-TRiS

1. 1. Go to https://hrdcorp.gov.my
2. 2. Access the e-TRiS portal or go directly to https://eis.hrdcorp.gov.my
3. 3. Register as a new employer using the “Register New Employer” option.
4. 4. Upload the required documents and fill in company and contact details.

Note: You must create a login ID for future access to HRD Corp services – including levy payments, training grant applications, and claims.

Step 4: Await Approval

• • HRD Corp will review your submission.
• • Once approved, you will receive:
  • o HRDF Employer Code
  • o Effective Levy Start Date
  • o Login credentials for e-TRiS

Notification will be sent via your registered email.

How Is the HRDF Levy Calculated?

The HRDF levy is a monthly contribution based on the wages of eligible employees covered under the Employment Act.

Here's how it works:

• • 1% for companies with 10 or more local employees (mandatory)
• • 0.5% for companies with 5–9 local employees (optional)
  (Shld we include HRDF only covers Malaysian citizens under the Act.)

The HRDF levy is calculated on the total monthly wages of the employee, which includes basic salary and fixed allowances (e.g., fixed transport, housing, or shift allowance). It excludes variable pay like overtime, bonuses, and commissions.

The formula for HRDF levy calculation is:

HRDF Levy = (Basic Salary + Fixed Allowances) × Levy Rate

When Is It Due?

HRDF levy payments must be made by the 15th of the following month (e.g., the levy for wages paid in October is due by November 15th).

What Can Employers Claim Under HRDF?

HRD Corp offers a Levy Grant System that allows employers to claim training costs aligned with their business needs and workforce development.

For Current Employees (Upskilling & Reskilling)

• • HRD Corp Claimable Courses
• • Skim Bantuan Latihan (SBL)
• • Skim Latihan Bersama (SLB)
• • On-the-Job Training (OJT)
• • Computer-Based Training (CBT)
• • Recognition of Prior Learning (RPL)

For Future Workers

• • Industrial Training Scheme (ITS)
• • Future Workers Training (FWT)

For Internal Training Setup

• • Purchase of IT Equipment
• • Training Facilities & Renovation (ALAT)

Note: All training must be approved in advance and conducted by HRDF-registered providers to qualify for claims.

Benefits of HRDF for Employers and Employees

The HRDF system creates a win-win opportunity by turning mandatory contributions into strategic investments in workforce development.

For Employers

Training Budget Advantage

Your levy becomes a dedicated fund for employee training maximising ROI at no extra cost.

Stronger Workforce

Upskilling enhances team performance, productivity, and employee welfare.

For Employees

Career Development

Access to funded training builds new skills, certifications, and career advancement opportunities.

Future-Ready Skills

Employees stay competitive with relevant, industry-focused training, future-proofing their careers in an evolving market.

What Happens If You Don’t Register or Pay HRDF Levy?

Non-compliance with the PSMB Act 2001 can lead to serious consequences:

• • Fines up to RM10,000, 1 year of imprisonment, or both.
• • 10% annual interest applies daily for late levy payments made after the 15th of the following month.

HR professionals must ensure timely registration and levy payment to avoid hefty fines and critical reputation damages.

How QuickHR Simplifies HRDF Compliance

QuickHR is a comprehensive, HRDF-compliant HRMS that transforms complex compliance into an effortless, automated process.

• • Automatically calculates HRDF levy according to the latest regulations
• • Ensures compliance with all Malaysian statutory bodies, including EPF, SOCSO, and LHDN (PCB)
• • Seamlessly manage, organise, and track employee training to maximise HRDF benefits

Want to see how it works? Book a free demo today.

Integrating QuickHR Payroll and Training Management helps ensure your HRDF reporting and claim tracking stay accurate and compliant.