If you run a business in Malaysia with ten or more employees, you are almost certainly required to contribute to the HRD Corp levy every month. Yet many employers either do not know this obligation exists, or they pay in without ever claiming the funds back for training. This guide covers everything you need to know.
What is HRD Corp?
HRD Corp — officially known as the Human Resource Development Corporation, or Perbadanan Pembangunan Sumber Manusia Berhad (PSMB) — is the national statutory body in Malaysia responsible for the development of human capital in the private sector. It was formerly known as HRDF (Human Resource Development Fund). The rebrand to HRD Corp happened in 2021, but "HRDF" is still widely used and refers to the same body and the same levy system.
HRD Corp operates under the Ministry of Human Resources (KESUMA) and administers the Human Resources Development (HRD) levy. Its mandate is to ensure that Malaysia's workforce is continuously upskilled to meet industry needs.
Who must pay the levy?
The levy is mandatory for employers in covered sectors who have ten or more Malaysian employees. The covered sectors are defined in the Second Schedule of the Pembangunan Sumber Manusia Berhad Act 2001, and they span most of the formal economy — including manufacturing, services, mining, construction, and retail.
- 10 or more Malaysian employees → 1% levy on monthly wages
- 5 to 9 Malaysian employees → voluntary registration (0.5% levy)
- Fewer than 5 employees → not required to register
- Expatriate employees are excluded from the levy calculation
How is the levy calculated?
The calculation is straightforward: 1% of total monthly wages paid to Malaysian employees. This includes basic salary, allowances, and bonuses — but excludes overtime, service charges, and reimbursements.
For example: if your total monthly payroll for Malaysian employees is RM 50,000, your monthly levy contribution is RM 500. Contributions must be paid to HRD Corp by the 15th of the following month via the eTRiS (e-Training Information System) portal.
What can you claim?
Your accumulated levy balance can be used to fund training for your employees — but only with HRDF-registered training providers offering approved courses. You cannot claim for internal training, ad hoc workshops from unregistered providers, or overseas training (with limited exceptions).
- Courses from HRDF-registered training providers
- E-learning programmes approved by HRD Corp
- Apprenticeship and structured on-the-job training schemes
- Competency-based training under NOSS frameworks
- Recognised overseas certifications (with prior approval)
How to make a claim
Claims are processed through the eTRiS portal at etris.hrdcorp.gov.my. Your company's HR manager (or an appointed Training Coordinator) handles this. The general process is:
- Step 1: Log in to eTRiS and verify your levy balance
- Step 2: Browse available schemes (SBL-Khas, SBL, IBL, etc.) to find the right claim type
- Step 3: Identify an HRDF-registered provider and confirm the course is claimable
- Step 4: Submit your claim before the training starts (some schemes require pre-approval)
- Step 5: Upload supporting documents after training — attendance sheets, invoice, and completion certificate
- Step 6: Wait for HRD Corp approval, then payment is transferred directly to the training provider
Common mistakes employers make
- Not registering with HRD Corp after reaching 10 employees (penalties apply)
- Missing the monthly payment deadline of the 15th
- Leaving levy balances unclaimed for years — accumulated balances can expire
- Booking training with unregistered providers and assuming it is claimable
- Failing to submit claims before training starts when pre-approval is required
- Not appointing a dedicated Training Coordinator in the company
Find HRD Corp registered training providers
FindTraining.com indexes every HRDF-registered training provider in Malaysia so you can find claimable courses faster than the eTRiS portal allows. Search by category, state, or delivery method.