Understanding contribution rates for the HRDF ensures that Malaysian employers are fulfilling their obligations and staying compliant. 

Under sections 14 and 15 of the PSMP Act 2001, contribution requirements generally include: 

• 1% of monthly payroll for employers with 10 or more Malaysian employees.
• 0.5% of monthly payroll for smaller employers in specific sectors.
• Contributions exclude allowances, overtime, and non-fixed payments.

To ensure you stay up to date with HRDF contribution rates, always monitor HRD Corp’s official website for the latest guidelines. 

For Businesses

Supporting business growth and development

The HRDF empowers businesses by enhancing the skills and knowledge of their workforce. This contributes to business growth and development, as a well-trained workforce is more adept at tackling challenges and achieving organizational goals.

Financial incentives and grants for registered employers

Businesses registered with the HRDF can access financial incentives and grants to offset training and development costs. These incentives alleviate the financial burden associated with upskilling employees.

Compliance with the Employment Act 1955

Complying with HRDF requirements ensures that businesses fulfill their obligations under the Employment Act 1955, which mandates that employers provide opportunities for employee training and development.

For HR Leaders

Opportunities for Professional Development and Upskilling

HR professionals, particularly those responsible for talent development, benefit from the HRDF by gaining opportunities for their own professional development and upskilling in areas related to human resource management.

Enhancing HR Practices and Capabilities

Access to the HRDF helps HR leaders improve their department’s practices and capabilities, aligning them with international standards. This, in turn, strengthens the organization’s overall human resource management.

Promoting a Culture of Continuous Learning Within the Organization

HR leaders can leverage the HRDF to promote a culture of continuous learning within their organization. This encourages employees to continuously acquire new skills and knowledge, enhancing overall workforce productivity.

For Employees

Career Development and Enhanced Employability

Employees who participate in HRDF-sponsored training programs experience personal career growth and enhanced employability. As they acquire new skills and knowledge, they become more valuable assets to their employers and the job market as a whole.

Improved Work Satisfaction

With opportunities for learning and growth, employees often experience improved work satisfaction. This is because they feel valued by their employers and empowered to take control of their own career paths.

Enhanced Job Security

Learning and upskilling through the HRDF programs can enhance job security, as employees become adaptable and equipped to meet the evolving demands of the job market.