HRD Corporation - Register or RM10,000 fine

 

Employers must register to avoid RM10,000 fine

 

1 March 2021, Malaysia’s Human Resources Development Fund (HRD Corp) has expanded the coverage of the Pembangunan Sumber Manusia Berhad Act 2001 (PSMB Act 2001) to include all industries.

So what does that mean? 

1. A company with 10 employees and above must register with HRD Corp and contribute a levy at 1% of monthly salary. 
2. A company who has less than 10 employees can choose to register and contribute at 0.5% of employees' monthly salaries. 

Penalty for non-compliance? 

Based on PSMB Act 2001, an employer will be convicted for not registering with HRD Corp may be fined up to an amount not exceeding RM10,000 or face imprisonment up to a year, or both.

 

Purpose of contribution to HRD Corp Fund?

Registered employers can make use of the fund contributed to upgrade their employees' skills according to their operational and business requirements. SBL Khas scheme means you can obtain Training Grant, and employers can send employees to registered training provider (like Genesis Origo) without forking out money to pay for the training. 

How to Register?

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 HERE to start register as an Employer.

Late payment of Levy

Remember, even after registering, you have to ensure your Levy is being remitted on time. Failure to do so can result in the following:

• 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.