Your HRDC levy equals 1% of total monthly payroll multiplied by 12 months. For a company with 100 employees at an average salary of RM 4,000, that is RM 48,000 per year paid to HRD Corp. By engaging an HRD Corp-registered training provider, you can claim back up to 80% of that levy - roughly RM 38,400 in training value. Most companies we work with recover less than half of what they are entitled to, leaving tens of thousands of ringgit unclaimed every year.
The HRDC Levy - How It Works
The levy - historically known as HRDF (Human Resources Development Fund) and now administered by HRD Corp (Human Resources Development Corporation, or HRDC) - is a mandatory contribution for employers registered under the Pembangunan Sumber Manusia Berhad Act 2001.
Who must register:
- All employers in the manufacturing sector with 10 or more employees
- Employers in the services sector with 10 or more employees (coverage expanded under the 2021 gazette)
- Employers with 5 or more employees in mining and quarrying
Levy rate: 1% of each employee's monthly wages, paid by the employer.
What counts as wages: Basic salary plus fixed allowances. Overtime, bonuses, and variable commissions are generally excluded from the levy calculation.
The Formula
The calculation is straightforward:
Annual HRDC Levy = Number of Employees × Average Monthly Salary × 0.01 × 12
| Company Size | Average Salary | Monthly Levy | Annual Levy | Claimable (80%) |
|---|---|---|---|---|
| 50 employees | RM 3,000 | RM 1,500 | RM 18,000 | RM 14,400 |
| 100 employees | RM 4,000 | RM 4,000 | RM 48,000 | RM 38,400 |
| 200 employees | RM 4,500 | RM 9,000 | RM 108,000 | RM 86,400 |
| 500 employees | RM 5,000 | RM 25,000 | RM 300,000 | RM 240,000 |
| 1,000 employees | RM 5,500 | RM 55,000 | RM 660,000 | RM 528,000 |
The "Claimable" column reflects the typical recovery achievable when training is delivered by an HRD Corp-registered training provider through an approved programme outline. Actual recovery depends on the grant scheme, programme cost benchmarks, and HRD Corp's current claim guidelines.
HRDC Annual Levy & Claimable Amount
| Employees | Avg Salary | Annual Levy | Claimable (80%) |
|---|---|---|---|
| 50 | RM 3,000 | RM 18,000 | RM 14,400 |
| 100 | RM 4,000 | RM 48,000 | RM 38,400 |
| 200 | RM 4,500 | RM 108,000 | RM 86,400 |
| 500 | RM 5,000 | RM 300,000 | RM 240,000 |
| 1,000 | RM 5,500 | RM 660,000 | RM 528,000 |
Maslow - HRD Corp-registered training provider
Why Provider Registration Matters
HRD Corp maintains a register of approved training providers. Only programmes delivered by HRD Corp-registered providers - using approved programme outlines and HRDC-certified trainers - are eligible for levy claims through schemes such as SBL, SBL-Khas, and PLT.
HRD Corp-registered training provider: A training organisation whose programmes have been reviewed and approved by HRD Corp, whose trainers are HRDC-certified, and whose programme outlines meet HRD Corp content, duration, and documentation standards. Maslow has been an HRD Corp-registered training provider since 2008 - over 17 years of continuous registration with 500+ approved programmes across leadership, professional skills, HR capability, and emerging technology.
Why this matters: Choosing a registered provider with a long track record means programmes have a much higher likelihood of claim approval, documentation is handled to HRD Corp standard, and trainers are vetted against rigorous HRDC quality criteria. A registered provider handles all claim documentation - programme outlines, attendance registers, trainer biodata, post-training evaluation - as part of the engagement, removing the administrative burden from the employer.
Grant Types - SBL, SBL-Khas, and PLT
HRDC offers several grant schemes. The three most commonly used:
SBL (Skim Bantuan Latihan): The standard training grant. Employers submit training programme details and receive approval before the training commences. Claim is submitted post-training with attendance records, trainer credentials, and programme evaluation. Approval takes 5 to 10 working days.
SBL-Khas: A pre-approved grant for urgent or ad-hoc training needs. Faster approval process but with more limited programme scope. Useful when training needs arise with short timelines.
PLT (Pelan Latihan Tahunan): The Annual Training Plan. Employers submit a full-year training calendar for blanket pre-approval. Individual programmes within the approved plan do not need separate applications. This is the most efficient approach for companies with regular, planned training schedules - it eliminates per-programme application overhead.
Which to use when:
- Regular annual training programme → PLT (submit once, train all year)
- Specific programme outside your annual plan → SBL
- Urgent training need with tight timeline → SBL-Khas
Why Companies Under-Claim
Across the companies we work with, the most common reasons for under-claiming HRDC entitlements:
No annual training plan. Without a structured training calendar, training happens reactively. HRDC claims require advance planning and documentation - reactive training often misses the submission window.
Using non-registered or low-tier providers. Some companies default to internal training or engage providers who are not HRDC-registered, making those programmes ineligible for claims.
Incomplete documentation. Every HRDC claim requires attendance records, programme outlines, trainer profiles, and evaluation forms. Missing any single document delays or rejects the claim.
Levy expiry. HRDC levies have an expiry window. Contributions that are not utilised within the permitted period are forfeited. Employers who accumulate levies without claiming effectively donate their training budget to the fund.
Perceived complexity. Smaller companies without dedicated HR or L&D staff view the HRDC claim process as bureaucratically complex and default to not claiming - even though the process is straightforward once a system is in place.
Maximizing Your HRDC Recovery
Step 1 - Audit your levy balance. Log in to the HRD Corp portal or contact HRD Corp directly to check your current levy balance and any expiring contributions. Know exactly how much you have available.
Step 2 - Build an Annual Training Plan. Map your training needs to your levy balance. A PLT submission gives you blanket approval and eliminates per-programme applications. Align the plan to actual skill gaps, not just compliance requirements.
Step 3 - Choose an HRD Corp-registered training provider with a strong track record. Registered providers handle the full claim workflow - programme registration, approval, attendance documentation, post-training evaluation - and dramatically increase your effective claim rate. Maslow has been HRD Corp-registered since 2008 with 500+ approved programmes.
Step 4 - Ensure documentation compliance. Before every programme: attendance registers, programme outlines, trainer biodata. After every programme: evaluation forms, certificates of completion, post-training reports where required. A registered provider handles this documentation as part of the engagement - it is not additional work for the employer.
Step 5 - Claim promptly. Submit claims within the prescribed period after programme completion. Delayed submissions risk rejection.
The Hidden Cost of Not Claiming
Consider a company with 200 employees and an average salary of RM 4,500. Their annual HRDC levy is RM 108,000. Over three years without claiming, they have contributed RM 324,000 to the fund - and received nothing back.
During that same period, their competitors with structured training programmes recovered RM 259,200 (at 80% claim rate) in workforce development. The gap is not just the money - it is the capability difference. The companies that claim are training their people. The companies that do not claim are paying the same levy and getting nothing.
After five years, the gap compounds. The claiming companies have invested RM 432,000 in workforce development. The non-claiming company has contributed RM 540,000 to the fund and developed no one.
The levy is mandatory either way. The only question is whether it becomes a training investment or a tax.
Frequently Asked Questions
What happens to HRDC levy that is not claimed?
Unclaimed levy contributions remain in the employer's account for a limited period. Contributions that exceed the permitted accumulation period are forfeited. The specific expiry terms are set by HRD Corp and may be updated periodically.
Can we claim for online or virtual training?
Yes. HRD Corp expanded the scope of claimable training to include virtual and online programmes, subject to documentation requirements including digital attendance verification and programme content standards.
Is in-house training claimable?
In-house training conducted by an HRDC-registered trainer using an approved programme outline is claimable. The trainer must hold valid HRDC trainer credentials, and the programme must meet HRD Corp content and duration standards.
How quickly are HRDC claims processed?
Standard SBL claims typically take 10 to 15 working days after submission of complete documentation. PLT claims under an approved annual plan may be processed faster since the programme was pre-approved.
Can small companies (under 50 employees) still benefit from HRDC?
Yes. The levy obligation applies to companies with 10 or more employees. Smaller companies often benefit the most from HRDC in proportional terms - an HRDC-claimable training programme that would cost RM 15,000 out of pocket can cost the employer only RM 3,000 after HRDC claims.
Want to go deeper on this topic?
Every organisation's situation is different. Talk to Maslow Intelligence about how this applies to your specific circumstances.