The HRD Corp operates on the basis of a levy/grand system.
Employers who paid the levy will qualify for training
grants from the fund to defray or subsidize training
costs for their Malaysian employees.
The rate of financial assistance is 100% of the
allowable costs incurred for training such as ISO
related training and up to 50% for costs incurred
overseas. The fund is subject to availability of levies
in the employer’s account with the Pembangunan Sumber
Manusia Berhad (PSMB).
For specific industries, apprenticeship schemes
developed and implemented by PSMB help in providing
trained workers to the industries. A RM35 million
Apprenticeship Fund established by PSMB pays for the
tuition fees of apprentices sponsored by employers in
PSMB-initiated Apprenticeship Schemes. At the same time,
100% of allowable training costs such as apprentices’
monthly allowances, insurance premiums and consumables,
can be reimbursed from levy contributions.
|
Companies that employ 50 or more Malaysian workers |
1% of employees’ monthly wages |
|
Companies that employ less than 50 to a minimum of 10
employees, with a paid up capital of RM2.5 million or
more |
1% of employees’ monthly wages |
|
Companies that employ less than 50 to a minimum of 10 of
employees, with a paid-up capital of less than RM 2.5
million (Note: For this category, the Government contributes
RM2.00 for every RM1.00 spent) |
Option of registering with the HRDF and paying a levy of
0.5% of the employees’ monthly wages |
