HUMAN
RESOURCE DEVELOPMENT FUND
HRDF tax or known as Human Resource
Development Fund is a mandatory tax payment collected by the Human Resource
Development Fund (PSMB) imposed on employers from certain industries. Under the
PSMB Act 2001, employers under certain categories are liable to pay a levy of
one per cent of each employee’s monthly salary with 30 per cent of the levy
channeled to the Human Resource Development Fund (HRDF) since 2016. It aims to
help train employees and improving the skills of the Malaysian workforce.
INDUSTRIES INVOLVED
1. Agriculture and farming
2. Livestock and fisheries
3. Forestry and logging
4. Mining and quarring
5. Manufacturing and production
6. Trading, business and wholesale
7. Construction
8. Supply
9. Real estate/ Property
10. Culture, arts and entertainment
11. Fashion and clothes
12. Cosmetics
13. Tourism and recreation
14. Services
15. Franchise
16. Electricity
17. Oil
18. Gas and steam
19. Water Sewerage
20. management of solid waste,
liquid and gaseous and remedial
21. Automotive
22. Transportation
23. Repairs and maintenance
24. Storage
25. Delivery
26. Food and beverages
27. Information systems
28. Communication and multimedia
29. Broadcasting and film
30. Insurance and takaful
31. Investment
32. Co-operatives societies
33. Professional
34. Science and technology
35. Research and development
36. Science and technicality
37. Administrative and support
services
38. Education
39. Medical and health facilities
40. Social welfare
41. Administration of organization membership
42. Small and medium enterprises
43. Household goods and services
44. Sports
45. Energy and natural resources
46. Personal services
Employers with 10 or more local
employees are required to register. While employers who have 5 to 9
local employees or employers who have five/ more but less than five hundred
thousand Malaysian employees who are non-governmental organizations and carry
out any activities related to labour unions/ religious organizations/ political
organizations/ nursing care facilities including nursing home for elderly,
orphanages for the disabled, chemical abuse or any welfare services/ social
work without lodging are optional to register.
Any employer who is required to
register but has not registered with HRDF can be fined up to RM10,000 and/or
imprisoned not exceeding one year. For information that employers under new
industries will be given exemption from HRD levy until 31 December 2021 under
the Human Resource Development Berhad Act 2001, provided that registration must
be made before 31 December 2021.
More information can refer to the
official portal of the Human Resource Development Corporation.