FAQ

NEW EMPLOYER REGISTRATION

The registration of employers is stipulated in the Pembangunan Sumber Manusia Berhad Act, 2001 (PSMB Act, 2001).

Generally, if your company falls under the Manufacturing, Services, or Mining & Quarrying sector (based on PSMB Act 2001) and your company employs a minimum of ten (10) Malaysian employees, it is compulsory for your company to register with Human Resource Development Corporation (HRD Corp).

If your company falls under the above mentioned sectors but only employs five (5) to nine (9) Malaysian, you are given an option to register with HRD Corp.

According to the Federal Government Gazette Pembangunan Sumber Manusia Berhad Amendment on First Schedule of PSMB Act 2001 Order 2021. These are the industries covered.
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Companies who have registered with HRD Corp are responsible to pay a monthly Human Resource Development (HRD) levy of 1% from the company’s monthly wages plus fixed allowances to HRD Corp.

As you pay the levy, you are eligible to receive assistance through the levy/grant system to retrain and improve or upgrade your employees’ skills. Prior to sending your employees for training programmes, you have to apply for training grant approval. Upon completion of training programmes, you can claim reimbursement for the expenses incurred. The amount allowed for reimbursement is subject to the approved amount or the actual expenses incurred, whichever lower. Reimbursement can be made directly to the employer or the training provider, depending on the type of schemes selected.

HRD Corp, through the PSMB Act 2001 imposes the collection of HRD levy through legal authority on liable employers in Malaysia. In return, the employers will receive financial assistance from the HRD levy paid, for training and development of their local employees.

By actively utilising the levy contributions, the employers are able to:

  • Improve the quality, productivity and competitiveness of their employees. Investing in up-skilling your employees is important to survive in the current and future competition of the local and international market. If the companies aspire to export their products and services, they must prepare their workforce to meet the regional and global market’s requirements. The employers are able to choose different training schemes provided by PSMB in order to suit their business and HR strategies.
  • Through Training Grant applications, employers are able to send their employees to training programmes that are required by the industry, meet industry-specific requirement and standards, for internal career development, succession planning or performance reward.
  • With the HRD levy, the registered employers can establish a systematic and structured training plan for their workers. A training plan is a requirement for ISO-certified organisations.
  • Gain access to continuous assistance from HRD Corp to help and support the HR Department and the employers themselves. Services include:
    – Advisory and consultancy services from qualified consultants on all aspect of human resource management. The services are either on complimentary basis or charged a minimal cost to HRD Corp registered employers.
    – Advisory services from HRD Corp officers on levy utilisation, registration or de-registration issues.
    – Dissemination of news, circulars, events or any updates via HRD Corp e-mail, portal, Facebook, Twitter, Instagram, LinkedIn and/or letters.
  • Gain access to special funds from the Government to HRD Corp for specific purposes from time to time. For example, to improve the productivity and competitiveness of Small Medium Enterprises (SMEs), the Government may provide training incentives to the employers; to produce more skilled young workers after they leave school and the Government may offer the Apprenticeship Training Fund Scheme under the minimum wage.
  • Opportunity to be nominated for the prestigious Human Resource Development Award as national recognition to employers who actively pay and utilise the HRD levy.
  • Levy payment is considered as allowable expenses under the Income Tax Act, 1967. Hence, HRD levy is value-for-money for the registered employers.

You can choose to register online or through a manual submission (form and supporting documents).
If you choose to register online, please follow these steps:

  • Please fill in the online form together with the supporting document.
  • After fill in the online form, please click on ‘Submit’ button.
  • Click the button below to start register as an Employer.

CLICK HERE

If you choose to register by sending a hardcopy of the documents, please follow these steps:

Please fill in the related forms and attach together the supporting documents such as Form 9, Form 24, Form 49 and latest EPF statements and send them to:

Registration Unit – Customer Acquisition Department
Pembangunan Sumber Manusia Berhad,
Wisma HRD Corp, Jalan Beringin,
Damansara Heights, 50490, Kuala Lumpur

Here are the documents you need to submit either via online registration or manual submission.

Jenis Pemunyaan Syarikat / Types of Ownership: Dokumen Sokongan / Supporting Document

Pemilik Tunggal / Sole Proprietorship – Lesen Perniagaan / Business License:

  • Penyata KWSP / EPF Statement
  • Profil Syarikat / Penyata Tahunan / Penyata Kewangan terkini atau apa-apa dokumen yang menerangkan aktiviti syarikat / Latest Company Profile / Annual Return / Financial Statement or any documents that state the activity of the company

 

Perkongsian / Partnership – Borang ROB / ROB Form:

  • Penyata KWSP / EPF Statement
  • Profil Syarikat / Penyata Tahunan / Penyata / Kewangan terkini atau apa-apa dokumen yang menerangkan aktiviti syarikat / Latest Company Profile / Annual Return /Financial Statement or any documents that state the activity of the company

 

Syarikat Sendirian Berhad / Private Limited Company:

  • Seksyen 14 / Section 14 atau / or SuperForm
  • Borang 9 / Form 9
  • Borang 13 / Form 13
  • Borang 24 / Form 24
  • Seksyen 17 / Section 17
  • Seksyen 28 / Section 28
  • Seksyen 78 / Section 78
  • Seksyen 58 / Section 58
  • Borang 49 / Form 49
  • Penyata KWSP / EPF Statement
  • Borang B / Form B (bagi pendaftaran IPTS sahaja / *for IPTS registration only)
  • Profil Syarikat / Penyata Tahunan / Penyata Kewangan terkini atau apa-apa dokumen yang menerangkan aktiviti syarikat / Latest Company Profile / Annual Return / Financial Statement or any documents that state the activity of the company

 

Syarikat Awam Berhad / Public Limited Company:

  • Seksyen 14 / Section 14 atau / or SuperForm
  • Borang 8 / Form 8
  • Seksyen 17 / Section 17
  • Seksyen 58 / Section 58
  • Borang 49 / Form 49
  • Penyata KWSP / EPF Statement
  • Profil Syarikat / Penyata Tahunan / Penyata Kewangan terkini atau apa-apa dokumen yang menerangkan aktiviti syarikat / Latest Company Profile / Annual Return / Financial Statement or any documents that state the activity of the company

 

Syarikat Asing / Foreign Company:

  • Seksyen 14 / Section 14 atau / or SuperForm
  • Borang 83 / Form 83
  • Borang 80A / Form 80A
  • Borang 79 / Form 79
  • Seksyen 17 / Section 17
  • Seksyen 562 (1) / Section 562 (1)
  • Penyata KWSP / EPF Statement
  • Profil Syarikat / Penyata Tahunan/Penyata Kewangan terkini atau apa-apa dokumen yang menerangkan aktiviti syarikat / Latest Company Profile / Annual Return / Financial Statement or any documents that state the activity of the company

No. Employers are not allowed to deduct from the employees’ wages under any circumstances for the payment of the levy.

An employer registration process takes 2 working days if all required documents are correct and complete.

Successfully registered employers will receive an e-mail notification regarding registration approval together with:

  • On-Boarding Programme and Starter Kit. It is important for newly registered employers to be aware of levy and how to pay levy, how to use the eTRis and general schemes offered by HRD Corp.
  • User ID and password. The purpose of user ID and password is to enable the authorised personnel to log into the HRD Corp system called eTRis (“Electronic Transformed Information System”)

*The hardcopy approval letter will also be posted to the employer’s address.

If the company director is paid a salary, he/she is regarded as an employee of the company, whereas a director who only accepts director fees is not considered an employee.

Form 1 – To be filled by the company that has more than 10 Malaysian employees and the nature of the business of the company is covered under PSMB Act 2001.
Form 1A – To be filled by the company that is not sure whether the nature of the business is covered under PSMB Act 2001.

Levy= (Total wages or basic salaries + fixed allowances) x 1%
[Basic salary is the unpaid salary of any payment]
*Only applicable for company with 10 or more Malaysian employees

Levy= (Total wages or basic salaries + fixed allowances) x 0.5%
[Basic salary is the unpaid salary of any payment]
*Only applicable for company with 5-9 Malaysian employees

No fee is charged when processing the application for registration.

Employee means any citizen of Malaysia who is employed for wages under a contract of service with an employer, but does not include any domestic servant.

Section 13(1) of the PSMB Act 2001 stipulates that every employer who is covered under the Act is required to register with HRD Corp within such time and manner as may be prescribed.

Any employer to whom this Act applies and chose not to register with HRD Corp shall on conviction be liable to a fine not exceeding RM10,000 or to imprisonment for a term not exceeding one year or to both (Section 13(2)).

Failure of payment before the stipulated time will result in;

  • Fine not exceeding RM20, 000.00 (Ringgit Malaysia Twenty Thousand) or imprisonment for a term not exceeding two (2) years or both (on conviction).
  • Yearly interest of 10 per cent in respect of each day of default or delay in payment.

CESSATION AND DEREGISTRATION OF AN EMPLOYER

Section 16 (1) PSMB Act 2001, no employer who is registered with the Corporation shall be deregistered.

Section 16 (2) PSMB Act 2001, regardless of subsection (1), if the number of employees of an employer to whom this Act applies, decreases to below the minimum number for three consecutive months, the employer may submit an application to the Corporation for deregistration together with any relevant documents to prove such decrease.

Section 13 (3) PSMB Act 2001, where any person cease to be an employer under this Act, he shall within thirty days of such cessation notify the Corporation in such manner as may be prescribed

Any cessation or deregistration application should be done by the employer within 30 days after the company stops operating.

No, deregistration only can be done if the company has changed its nature of business and the new business is not covered under the PSMB Act 2001 or the company has less than 10 Malaysian employees for 3 consecutive months.

Yes, a company can deregister with HRD Corp if the new nature of business for the company is not covered under the PSMB Act 2001.

The balance levy will be transferred to the HRD Corp General Reserve.

ACQUISITION (LEVY TRANSFER) OF AN EMPLOYER

Section 20 (4) PSMB Act 2001 stated where an employer has acquired the interests of another employer registered under subsection 13(1) or 15(1), the first-mentioned employer shall be substituted for that other employer and shall be eligible to receive or continue to receive any financial assistance or other benefit provided under this Act, as the case may be, in respect of the employees, apprentices and trainees of the employer whose interests have been acquired.

Section 13 (3) PSMB Act 2001, where any person cease to be an employer under this Act, he shall within thirty days of such cessation notify the Corporation in such manner as may be prescribed.

Any cessation or deregistration application should be done by the employer within 30 days after the company stops operating.

No, deregistration only can be done if the company has changed its nature of business and the new business is not covered under the PSMB Act 2001 or the company has less than 10 Malaysian employees for 3 consecutive months.

Yes, a company can deregister with HRD Corp if the new nature of business for the company is not covered under the PSMB Act 2001.

The balance levy will be transferred to the HRD Corp General Reserve.

If PSMB doesn’t receive any response from employers within 30 days, employers can be compounded for RM2,000 (Max) under Sec.4A Regulations of the Act. Eligibility of employers under the Act can only be decided by PSMB and not by employers itself. Employers are advised to fill in Form 1 to receive an official confirmation from PSMB on the eligibility.

HRD Corp Industry Intelligence Report aims to provide information related to human capital and learning ecosystem based on HRD Corp internal data and market movement.

PSMB cannot confirm your eligibility through phone or email because we need to verify the supporting documents as well as the information filled in the form. Your eligibility can only be confirmed after the form has been processed by PSMB.

Liable employers are compulsory to register as required by the Law under PSMB Act, 2001 or Act 612. This is to encourage training and skills upgrading by employers to their employees.

Employers can visit our portal at www.hrdcorp.com.my and click (Employers > About Employers)

The PSMB Act 2001 (“Akta PSMB 2001”) imposes the collection of a Human Resource Development (HRD) levy by way of legal authority on eligible employers in Malaysia which is used for training, developing and upgrading the skills of their local employees, apprentices and trainees through training grants.

The expansion of the PSMB Act 2001 is an initiative to increase more liable employers covered under the Act, assisting towards increasing the number of skilled workforce, with the Ministry spearheading the mission, that are flexible and responsive to business needs.

HRD Corp has assumed a greater responsibility to reach out to the corporates; educating and motivating them to seek the benefits and value of HRD Corp training and development programmes and initiatives.

Malaysian employers across all sectors except for Federal, statutory bodies & State Government and NGO with social and welfare activities with a minimum of ten (10) local employees.

Additionally, employers across all sectors (except for Federal, statutory bodies & State Government) with five (5) to nine (9) local employees will be given the option to register with HRD Corp.

  • Eligible employers under mandatory category are obliged to pay to HRD Corp a HRD levy on each local employee at the rate of one (1) per cent of the employee’s monthly wages;
  • Employers with five (5) to nine (9) local employees under optional category, the HRD levy are at the rate of 0.5 per cent of the local employee’s monthly wages.

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]

Section 13(1) of the PSMB Act Failure in making the levy payment before the stipulated timeline (by every 15th of the month) will result in:

  • Fine not exceeding RM20,000 (Ringgit Malaysia) or imprisonment for a term not exceeding two (2) years or both (on conviction).
  • Yearly interest of 10% (per cent) in respect of each day of default / delay in payment.

Employers can submit online Form 1 via HRD Corp portal at hrdcorp.gov.my > Forms > Employers Form > Registration of Employers > Form 1.

The Expansion of the Act will come into effect in March 2021.

Registered employers who have been actively utilising their levy contributions in retraining and skills upgrading their employees will reap the following benefits:

  • Equipping their local employees with specific and up-to-date skills through Training Grant applications which in return increases an employer’s productivity and value-adds to Company’s operations and economic performance. HRD Corp registered employers can apply for various Training Grants and these are – Training Assistance Scheme (SBL), Special Training Assistance Scheme (SBL-Khas) and Industrial Training Scheme. All training fees are debited directly through the employer’s levy account.
  • Having a multi-skilled workforce in meeting the local, regional and global market demands. Suffice to say, by registering with HRD Corp, employers will get the benefits in the human capital development of their employees in a systematic manner. These include access to special funds from the Government of Malaysia (which include but is not limited to training incentives to Small Medium Enterprises (SMEs) employers and the Apprenticeship Training Fund Scheme under minimum wage) distributed to HRD Corp from time to time.
  • Access to continuous assistance in terms of guidance, schemes and initiatives.
  • Complimentary consultations from qualified consultants on all aspect of human resources’ management.

Section 13(1) of the PSMB Act 2001 stipulates that every employer who is covered under the Act is required to register with HRD Corp within such time and manner as may be prescribed.

Regulation 4(1) of Pembangunan Sumber Manusia Berhad (Registration of Employers and Payment of Levy (Amendment) Regulation states that an employer to whom the Act applies on the date of coming into operation of these regulations shall submit Form 1 of the Schedule to HRD Corp not later than 30 days.

Any employer who is convicted for not registering with HRD Corp may be fined up to an amount not exceeding RM10,000 or an imprisonment for a period not exceeding one year or both (Section 13 (2) of PSMB Act 2001).

If the company’s director is paid by the company for monthly salary, then he/she is considered as an employee and must be counted in the levy payment. Whereas, a director who only receives director fees is not considered as an employee and shall be excluded from the levy payment.

Only liable employers will be registered. If the employers’ sector is not covered under the Act or they are not liable, then the application of Form 1 will be automatically rejected and the employer will receive a rejection letter. HRD Corp is not allowed to register any employers that are not liable under the Act.

  • Employers covered under the PSMB Act 2001 are required to complete the Employer Registration Form (Form 1) through online application available at www.hrdcorp.com.my.
  • The mentioned form should be returned/submitted together with FORM 9 or other business registration license and COMPANY PROFILE / ANNUAL REPORT / FINANCIAL AUDIT REPORT, AND LATEST EMPLOYEES PROVIDENT FUND (EPF) STATEMENT to the address listed on the back cover of this book.

HRD Corp cannot confirm on your eligibility via phone call or email. We require supporting documents such as Form 9 / Section 17 or Section 14 / latest EPF statement / company profile / audited annual report to verify the registration eligibility.

Confirmation will be made upon completion of registration process. List of industry / services covered under the act is listed as per the First Schedule.

Yes. Employers are still required to submit the form with the relevant supporting documents to justify the current number of manpower.

Approved / successfully registered employers will receive an email notification on the approval together with:

  • Free On-Boarding Session.
  • User ID and Password to access HRD Corp System (e-TRiS)

On-Boarding Programme is a customised training to give an overview and understanding for newly HRD Corp registered employers on how to use the system for grant application, levy payment, claim submission and updating employer’s information.

Complete application will be processed within two (2) working days.

Processing officer shall be in contact with you via email for any query or you may drop an email to [email protected].

The relevant information about the expansion of the Act can be retrieved from HRD Corp’s official website: www.hrdcorp.com.my or you may contact HRD Corp’s toll-free Call Centre at 1800 88 4800.

Do you need assistance from our officers?

Fill up our contact form or contact us at:
Email: [email protected]
Hotline: 1800-88-4800

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