KDU Management Development Centre (KMDC) is an education and training provider registered with PSMB. Many corporate clients have been seeking advice on How to Make Claim on HRDF.
This page provides information on “What is HRDF?” “What is HRD Levy?” “Who Should Register with HRDF?” “Who are Eligible to Apply for Training Grant? How to Claim HRDF?”
Check out our 2018 Calendar of Events which included 60+ events and free talks, public training workshops , professional certification courses: Digital Marketing, Social Media Marketing, Digital Strategy & Planning, Search Marketing, Digital & Social Selling, Certified Financial Planner (CFP) and Financial Risk Manager (FRM). All courses are eligible for HRDF claim.
WHAT is HRDF?
The Human Resources Development Fund (HRDF) is a dynamic organisation under the Human Resources Ministry that was established in 1993, under the legal requirements of the Human Resources Development Act 1992, currently known as the Pembangunan Sumber Manusia Berhad Act 2001 (PSMB ACT 2001).
The HRDF is a pool of funds that consists of Human Resources Development levies collected from employers of the manufacturing and service sectors as listed in the First Schedule of the Pembangunan Sumber Manusia Berhad Act 2001 (liable registrants) as well as optional registrants.
In a simpler way to say, the HRDF was established with the aim of developing quality human capital and world-class workforce in order for Malaysia to achieve a high income economy based on knowledge and innovation.
Who Should Register with PSMB?
Section 13(1) of the PSMB Act 2001 stipulates that every employer who is covered under the Act is required to register with PSMB within such time and manner as may be prescribed.
Any employer who is convicted for not registering with PSMB may be fined up to an amount not exceeding RM10,000 or face imprisonment up to a year, or both (Section 13 (2)).
According to the First Schedule of PSMB Act, 2001, definitions of industries covered are as follows:
What is Human Resources Development (HRD) Levy?
According to Section 14(1) of PSMB Act, 2001 a HRD levy, mandatory levy payment imposed by the Government on specified groups of employers for the purpose of employee training and skills upgrading shall be paid by every employer to whom the PSMB Act, 2001 applies. Employers are liable to pay a Human Resource Development levy for each working employee at the rate of 1.0% of the monthly wages of the employee.
Benefits of HRDF
Training grants are open to all employers registered and/or incorporated in Malaysia who have registered with PSMB and pay the HRD levy as to defray all or a major portion of the costs incurred in employee training. Financial assistance is given to employers that conduct training that is in line with their business operations.
Who is Eligible to Apply for Training Grant?
Employers registered and/or incorporated in Malaysia who have registered with PSMB and pay the HRD levy immediately upon registration are eligible to apply for training grants (financial assistance) to defray all or a major portion of the “allowable costs” of training attended by their employees. Training must be in the area of direct benefit to their business operations. Financial assistance is, therefore, not given to individuals who enrol and finance their own training programmes, whether partially or fully, and subsequently request for reimbursement from their employers. Neither is financial assistance given to employers who bear the cost of training after the successful completion of training by their employees.
To be eligible for training grants under the HRDF, trainees must be employees who are MALAYSIAN CITIZENS.
HRDF and How to Claim Under SBL Scheme
SBL Scheme – The Skim Bantuan Latihan (SBL) Scheme
Skim Bantuan Latihan (SBL), is the main scheme under Human Resource Development Fund (HRDF). Under this scheme, employers are free to identify their own training needs and to implement their training programmes to retrain and upgrade their employees’ skills in line with their operational and business requirements. SBL is offered based on these fundamental guidelines such as:-
• HRDF provide specialized training grant as an incentive for employers to retrain and upgrade workers’ skills, in line with the needs of their business requirement. Training grant is not a subsidy for training;
• Under SBL Scheme, employers are to identify their workers’ training needs and obliged to pay fully the training programme; and
• For programmes under the SBL Scheme, prior approvals must be obtained from HRDF. Reimbursement of allowable training costs is based on the rate of financial assistance as determined by HRDF from time to time. Payment is based on EMPLOYER CLAIM.
The objective of this scheme is to encourage employers to retrain and upgrade their employees’ skills in line with their operational and business requirements.
Eligibility Requirements For Employers
All registered employers with HRDF and has paid the levy for the first month of registration is liable to apply for the training grant, subjected to the existing rate of financial assistance and terms and conditions.
HRDF – How to Apply
- Login to HRDF Portal and Launch eTRiS
- Click on ‘Application’
- Select from menu ‘Grant’ >’Apply Grant’
- Select SBL from menu ‘Scheme Code’ > ‘Apply’
- Then fill up the form accordingly.
- For detailed instructions kindly download User Guide (External) and go to Section 6 Grant Application with Scheme Code: SBL
HRDF – How to claim
Training Grant Claims
Training Grant claims will be paid upon submission of the claim form by the employers after the completion of the training programme. It should be submitted by using the online claim form of which can be obtained from HRDF officers or the website. To avoid any delays in processing claims, employers should ensure that the form is complete and correct. Relevant receipts must also be included. All copies of receipts or supporting documents must be certified by the employer.
- Login to HRDF Portal and launch eTRiS.
- Click on ‘Application’ icon
- Select from menu, click on ‘Claim’.
- Choose either you want to ‘Submit Claims with Grants’ or ‘Submit Other Claims’.
- Please fill in the online form together with the supporting document, then click on ‘Submit’ button.
- Click here to start claim.
The claim form must be signed by an authorized officer from the employer’s side or any officer holding the post as specified in the claim form. Claims must be submitted upon completion of training and all costs have been paid. The claim form must be submitted no later than June 30 the next year.
Payment will not be made if the trainees did not attend the full training programme. A trainee is deemed to have completed the training programme if he had followed at least 75% of them and takes all the examinations / tests, if needed.
Cheque or credit statement (E-disbursement) will be posted to employers. The statement for each calculation/payment will be given as well for reference.
HRDF Claimable Courses Offered by KMDC
Types of Training Scheme
Employers are encouraged to utilise their levy payments via the following training schemes:
1.The SBL (Skim Bantuan Latihan) Scheme
The SBL scheme is the main funding scheme of PSMB. Prior approvals must be obtained from PSMB’s Secretariat. Employers are allowed to identify their own training needs and to implement their training programmes to retrain and upgrade their employees’ skills in line with their operational and business requirements. Under this scheme, employers are allowed to conduct training either on-the-job, off the job or a combination of both. Employers may also conduct training by engaging internal, external or overseas trainers. Effective 1 January 2011, trainers or training providers are required to register under Category C before they are allowed to conduct training under the SBL Scheme.
2. The SBL-KHAS Scheme
The SBL-Khas scheme is mainly to assist employers who are facing cash flow problems to continue with their retraining and skills upgrading of their workforce by using existing levy balances. Under this scheme, employers need not pay training fees to training provider. PSMB will directly debit from the levy accounts of employers to pay the training fees incurred to training providers with the authorisation of the employers concerned. Training programmes that are eligible to be offered under this scheme are public and in-house programmes conducted by training providers who are registered with PSMB. Training grant applications submitted by employers for programmes that are not registered or conducted by training providers not registered under this scheme will be rejected.
3. The PROLUS (Program Latihan Yang Diluluskan) Scheme
The Scheme requires training providers to register with PSMB. Upon registration, they may submit their training programmes, which are relevant to employers’ training needs for the award of the ATP (Approved Training Programmes) status. Employers can select any training programme with ATP status, send their employees for training without prior approval from PSMB and claim for reimbursements upon the completion of training, subject to the terms and conditions imposed by PSMB. Amongst the training programmes/courses that can publicly being offered are Management/Administrative Skills, Craft/Technical Skills, Computer-related Skills and Productivity-related Skills.
4. The PERLA (Perjanjian Latihan Dengan Penyedia Latihan) Scheme
This scheme is basically a Training Agreement Scheme with selected training providers registered with PSMB. The objective of the scheme is to lessen the financial burden of employers, particularly the smaller employers. Under the scheme, employers sending their employees for retraining/skills upgrading with these training providers need not pay the full amount of fees charged. As an example, if the fee charged for a particular programme is RM1,000.00 and the rate of financial assistance under the HRDF is 85%, employers only need to pay an upfront of RM150.00 upon registration. The balance of RM850.00 will be claimed by the training provider concerned from PSMB. Where the rate of financial assistance is 100%, employers need not pay any upfront cost at all. With no or a small upfront cost, it is hoped that more employees will be sent for retraining and skills upgrading.
5. The PLT (Pelan Latihan Tahunan) Scheme
The PLT Scheme is the annual training plan scheme where employers are encouraged to put up Annual Training Plans. Under this scheme, employers must undertake systematic training needs analysis to ensure that training programmes are conducted on a needs basis and in line with their business plans and level of technology adaptations. The training plan must cover at least 10% of the company’s total workforce with at least 15% of them from the lower level employees, having SPM qualifications and below. Employers without the necessary expertise to do so, can seek assistance from PSMB under the Juruplan Scheme (Consultancy Scheme for Training Needs Analysis). Employers can apply for consultancy services from training consultants registered with PSMB. The consultants will assist employers to identify training needs, systematically formulate training programmes and prepare annual training plans. Employers must obtain prior approvals from PSMB in respect of the TNA proposals put up by the consultants. This scheme is a one-off exercise and employers are expected to carry-out their own TNA in subsequent years.
6. Purchase of Training Equipment and Setting up of Training Room Scheme
This scheme enables employers to obtain financial assistance at the rate of 100% to purchase basic training equipment and setting up of training rooms. The maximum amount that can be considered is not more than 20% of previous year’s total levy payments. Prior approvals of PSMB must be obtained under this scheme. This scheme encourages employers to conduct more in-house training programmes, apart from enhancing the training culture amongst them.
Training aids approved under the scheme are as follows:
- Television set;
- VCR (Video Cassette Recorder);
- VCD (Video Compact Disc) player or DVD (Digital Video Disc) player;
- Overhead projector;
- LCD, direct and multimedia projector;
- Screen and white board;
- Training video tape;
- CD (Compact Disc) training video;
- Chairs and tables for training room only;
- Flip chart stand; and
- Mannequin (for first aid and CPR training)
For the setting up of the training room scheme, financial assistance granted does not include the construction of buildings, training centres or the purchase or renting of training rooms.
Under the Employers Circular No. 3/2009, the purchase of computer notebook(s) has been approved as an allowable item under the Purchase of Training Equipment and Setting Up of Training Room Scheme with the terms and conditions as stated below: –
- Employers must have training room(s) and full-time internal trainer(s) or training personnel;
- Computer notebooks must be used by internal trainer(s) or training personnel;
- There must be LCD projector(s) on company premises;
- Computer notebooks are not allowed to be given for use by other personnel for non-training functions;
- Computer notebooks when not being used must be placed in the training room(s) or Human Resources Department. Computer notebooks are allowed to be taken out of the company premises if there are training activities being carried out by the company;
- The purchase of computer notebooks is allowed once in every two years; and
- Employers who have lost their notebooks purchased under the HRDF are not allowed to apply again for replacement.
7. Computer-Based Training (CBT) Scheme
Employers who wish to purchase or develop computer-based training software including CD-ROM for the retraining and skills upgrading of their employees are eligible for financial assistance. For the purchase of software, a prior approval from PSMB is not required. However, prior approvals must be obtained if employers engaged consultants to develop specific training software. The rate of financial assistance will be based on the type of skills involved.
8. Information Technology and Computer-Aided Training Scheme (Purchase of Personal Computer)
To encourage training in Information Technology by employers, financial assistance will be provided to employers to set up computer training units within their premises to avoid difficulties in releasing their workers to attend training outside their premises. Under the scheme, employers can purchase several units of personal computers. Employers are eligible to receive financial assistance up to a maximum amount of RM25,000.00 once in every three (3) years.
For employers to receive this financial assistance, they must seek prior approval before making the purchases. The purchase of computers is solely for training and not to be used for office administration. The purchase of personal computers includes multi-media kits such as CD-ROM drives, speakers and sound cards, Notebooks and laptops are not eligible for financial assistance under this scheme.
9. Apprenticeship Scheme
The objective of this scheme is to increase the supply of skilled workers in industries identified by PSMB and employers. Apprentices are selected from PMR and SPM school leavers. Existing employees with no formal training can also be sponsored by employers, but subject to a ratio of one (1) existing employee to one (1) school leaver. Training conducted will involve a combination of theoretical training at the premises of training providers with an emphasis on practical training and structured on-the-job training at the premises of sponsoring employers. The curriculum for the apprenticeship scheme has been developed on a modular basis.
After the completion of training for each module at the premises of the training providers (for a period of three (3) months), apprentices would have to undergo another three (3) months on-the-job training at the premises of sponsoring employers. This is to reinforce the theoretical concepts learnt in the classrooms. The duration of training ranges from six (6) months to eighteen (18) months, depending on the type of skills and the needs of employers.
Tuition fees incurred will be fully paid by PSMB whilst employers will be responsible for paying the apprentices’ monthly allowances of between RM300.00 to RM500.00. Sponsoring employers are also responsible to purchase insurance coverage for their apprentices for the duration of training. Sponsoring employers are eligible to obtain financial assistance at the rate of 100% of the “allowable costs”, namely, apprentices’ monthly allowances, insurance coverage and consumable training materials, if applicable. Upon successful completion of training, apprentices will be awarded the Malaysian Skills Certificates Level 1 and 2 by the National Vocational Training Council. For those who complete the full modules required under any of the scheme, they would be awarded the Apprentice Certificates, jointly issued by PSMB and the National Vocational Training Council.
10. Joint Training Scheme
This scheme enables several employers, particularly those from the SMEs, to jointly appoint a training provider to conduct training for their employees. One of the employers will act as the ‘organiser’ who will determine the type of programme required, engages a suitable training provider and determines the venue for training. The ‘organiser’ will also be responsible for determining the cost per employee to enable participating employers to claim the “allowable costs” incurred upon the completion of training. The ‘organiser’ is eligible to claim the “allowable costs” at the rate of 100%, whilst participating employers can only claim at the normal rates of financial assistance approved by PSMB.
List of KMDC HRDF Claimable Professional Certification Programmes, Online Courses and Workshops
- Professional Diploma in Digital Marketing
- Professional Diploma in Digital & Social Selling
- Specialist Diploma in Social Media Marketing
- Specialist Diploma in Search Marketing
- Specialist Diploma in Digital Strategy & Planning
- Certified Financial Risk Manager (FRM) Certification Exam Review Course
- Certified Financial Planner (CFP) Certification Education Programme
- Executive Financial Planning Series
- Online Learning Programmes
- Professional Certificate in Leadership and Management (Coming)
- Management Development Programme (In-House workshop – Soft Skills Training)
- Public Workshop – 2018 Schedule