SELaiCK Alerts 5-2021 – Expansion of HRDF coverage to ALL sectors

Dear Valued Clients and Associates


As part of 11th Malaysia Plan to increase the number of skilled workforce in Malaysia, the Human Resources Development Fund (HRDF) has been expanded to include Malaysian Employers of ALL sectors except for the Federal Government, State Governments, local councils, and statutory bodies effective from 1 March 2021.

Salient points:

  • PSMB (Amendment of First Schedule) Order 2021 (PSMB Order 2021) was gazetted on 26 February 2021 for the expanded list of industries and exemptions. It is mandatory for employers with 10 or more employees to register with HRDF, while employers with 5 to 9 employees are given the option.
  • Obligation of Employers
    • In order to assess the employers’ eligibility for registration, ALL employers arerequired to submit the duly completed Borang 1 (please refer to HRDF’s website for online submission) by 30 March 2021 regardless of the number of their employees.
    • HRDF levies payable are as follows :
No. of employeesLevy (% of Mthly Salary)
0 to 4N/A
5 to 90.5%
10 or more1%
  • HRDF levy payment
    • 1% or 0.5% of monthly wages (Basic salary + Fixed Allowances, excl. Non-Fixed remuneration e.g. Bonus/OT/Travel Allowances etc) of local Malaysian employees, incl. director (except director who receives only director fees)
    • Exemption of HRDF levy payment is granted for 3 months from March to May 2021
    • 1st monthly payment for June 2021 shall be due on 15 July 2021.
  • Grant and claim application
    • To apply for a HRDF training grant – approval application must be submitted7 days before a HRDF credited training commences
    • Confirmation of approval should be received prior to training commencement
    • Claims can be submitted within 6 months after training completion

Further details incl. the registration process and related FAQ are listed in HRDF website.

Please access our website at for all of our earlier Alerts

Please do not hesitate to contact the following should you have any queries on the above:

Lew Choon Kiong (CK)
Ms Ong Cheng

Best regards

25 Mar 21