What Is HRD Levy and Who Must Pay It?
The HRD Levy is a mandatory contribution to HRD Corp under the Pembangunan Sumber Manusia Berhad Act 2001. Who must register and pay:- Employers in manufacturing, services, and mining sectors
- With 10 or more Malaysian employees, OR
- With fewer than 10 employees but annual payroll exceeding RM500,000
- 1.0% of monthly wages (10 or more employees)
- 0.5% of monthly wages (fewer than 10 employees)
HRD Levy Deadlines in 2026
The levy must be paid monthly. Deadline: the 15th of the following month.- 20 employees at RM3,500 average = RM70,000 payroll
- HRD Levy at 1% = RM700/month, RM8,400/year
Common HRD Levy Mistakes
Not Registering with HRD Corp
Many SMEs that cross the eligibility threshold do not register.Including Foreign Worker Salaries
Only Malaysian citizens count. Including foreign workers inflates contributions incorrectly.Missing the 15th Deadline
Late submissions accumulate significant penalty exposure.Failing to Claim Training Grants
Every ringgit contributed can be reclaimed through approved training programmes.Wrong Employee Classification
Contract workers, part-time staff, and directors each have different treatment under HRD Levy rules.How to Claim HRD Levy Training Grants
- SBL-Khas: Approved external training reimbursement
- SBL: Customised in-house or blended programmes
- PERLA: Apprenticeship with HRD Corp funding
- SLLN: Approved e-learning programmes
- Register on HRD Corp e-TRiS portal
- Identify an approved training programme
- Submit a grant application before training date
- Complete the training
- Submit reimbursement claim after completion
Simplify with Payroll Outsourcing
- HRD Levy calculated automatically for eligible employees
- Submissions made on time every month
- Accurate records maintained for audit purposes
- Notified when HRD Corp balance is available to claim