HRDC Levy & Claimable Training: A Guide for Malaysian Employers
Every month, thousands of Malaysian employers pay the Human Resources Development Corporation (HRD Corp, formerly HRDF/PSMB) levy as a statutory obligation — and every month, a significant portion of that money goes unclaimed. In 2023 alone, HRD Corp reported substantial unclaimed levy balances across employer accounts, representing real money that registered employers could have used to train their workforce.
If you have employees and are registered with HRD Corp, you have a training fund sitting in an account that you are legally entitled to use. This guide explains exactly how the levy works, which employers must register, how much you pay, and — most importantly — how to claim it back for genuine staff development.
What Is HRD Corp and Why Does It Exist?
HRD Corp (Human Resources Development Corporation) is a statutory body under the Human Resources Development (HRD) Act 2001, under the purview of the Ministry of Human Resources. Its mandate is to promote the development of a skilled, competitive Malaysian workforce by creating a levy-funded pool that employers can draw on for training.
The system is essentially a structured savings mechanism: employers contribute a percentage of their monthly wage bill as a levy, which goes into their HRD Corp account. They can then submit claims to recover the cost of approved training programmes for their employees. Employers who train actively typically get far more value than they put in; employers who do not claim effectively subsidise the system.
Who Must Register with HRD Corp?
Registration with HRD Corp is mandatory for employers in the following categories:
Manufacturing sector: companies with 10 or more Malaysian employees
Services sector: companies with 10 or more Malaysian employees (since the HRD Act was extended to cover more service sub-sectors)
Mining and quarrying, construction, agriculture, and other sectors as specified in Schedule 1 of the HRD Act
Registration is voluntary for employers with fewer than 10 Malaysian employees — but voluntarily registered employers are still required to pay the levy once registered. Some small employers register voluntarily to access the training fund, particularly if they plan significant staff development expenditure.
Important: If your company meets the mandatory registration criteria but has not registered, you are in breach of the HRD Act and subject to penalties. Register via the HRD Corp Employer Portal (erdms.hrdfcorp.org.my).
How the Levy Is Calculated
The HRD Corp levy is calculated as a percentage of each Malaysian employee's monthly wages (basic salary plus fixed allowances):
Mandatory registered employer: 1.0% of monthly wages per Malaysian employee
Voluntary registered employer: 0.5% of monthly wages per Malaysian employee
Example calculation for a company with 20 Malaysian employees at an average monthly wage of RM 3,500:
Total monthly wage bill: 20 × RM 3,500 = RM 70,000
Monthly levy at 1.0%: RM 70,000 × 1% = RM 700 per month
Annual levy contribution: RM 700 × 12 = RM 8,400 per year
This RM 8,400 annual contribution is available in your HRD Corp account to claim back for qualifying training programmes. If your company conducts meaningful staff development, you should be aiming to claim close to or above this amount each year.
Tip: The levy is payable monthly and must be submitted to HRD Corp by the 15th of the following month. Late payments attract a surcharge of 10% per annum on the outstanding amount.
What Training Can You Claim For?
HRD Corp offers several grant schemes under which training costs can be claimed. The most commonly used are:
SBL-Khas (Skim Bantuan Latihan Khas)
The flagship claim scheme. Employers identify a training programme (delivered by an HRD Corp-registered Training Provider) and submit a training grant application before the training takes place. Upon approval and completion, costs are fully claimable from the employer's levy account.
Claimable costs: Training fees, training materials, trainer's accommodation and meals (capped), and related logistical costs
Process: Submit application via Employer Portal at least 14 days before training commencement
Approval: Usually within 7–14 working days for straightforward applications
Skim Bantuan Latihan (SBL) — Self-Arranged Training
For employers who organise in-house training programmes using their own trainers. The employer bears the full cost and claims reimbursement. Requires the trainer to be HRD Corp-registered or exempt.
Skim Latihan Bersama (SLB) — Group Training
A consortium of employers jointly organises and funds a training programme for their respective employees, with costs shared proportionally. Useful for industry associations running sector-specific training.
e-LATiH Platform — Online Training
HRD Corp's own online learning platform (elatih.hrdfcorp.org.my) hosts hundreds of approved e-learning courses that employees can enrol in directly. Costs are charged against the employer's levy account. This is the most frictionless route to accessing the fund — no prior approval required for listed courses.
How to Submit an SBL-Khas Training Claim: Step by Step
Select a registered Training Provider — search the HRD Corp Training Provider directory on the employer portal. Only programmes delivered by registered providers are eligible for claims. Many reputable training companies in Malaysia are HRD Corp-registered — verify before booking.
Get a quotation from the Training Provider — obtain a formal training quotation on the provider's letterhead, including programme title, content outline, trainer details, dates, venue, number of participants, and full fee breakdown.
Submit a training grant application on the Employer Portal — log in to erdms.hrdfcorp.org.my, select 'Apply for Training', complete the application form, and upload the quotation and participant list. Submit at least 14 days before the training start date.
Receive approval letter — HRD Corp issues an approval letter confirming the grant. Do not proceed with training before receiving this — training conducted without prior approval is not claimable.
Conduct the training — ensure all approved participants attend and that attendance records are maintained.
Submit a completion claim — within 30 days of training completion, submit the completion claim with: invoice from the Training Provider, payment receipt (showing you paid the provider), attendance list signed by participants and trainer, and training evaluation forms.
Receive reimbursement — HRD Corp credits the approved amount to your levy account or directly reimburses the Training Provider (depending on the arrangement). Process typically takes 14–30 working days from complete claim submission.
Important: You cannot claim for training attended by non-Malaysian employees. Only Malaysian citizens and permanent residents are covered under the HRD Act for levy and claim purposes.
How to Maximise the Value of Your HRD Corp Levy
Many employers contribute more to their levy account than they claim. Here is how to ensure you are getting full value:
Build a training calendar at the start of each year — identify skills gaps, plan training programmes per department, and schedule them across the year rather than scrambling at year-end when levy balances expire.
Use e-LATiH for cost-effective individual development — the online platform is ideal for self-paced courses in Microsoft Office, leadership, communication, safety, and technical skills. Enrolments are processed quickly and costs are directly charged to your account.
Submit renewal claims for mandatory safety and compliance training — programmes like OSHA awareness, first aid, forklift certification, and other recurring mandatory training are all claimable.
Use the levy for management and leadership development — many SME owners assume HRD Corp only covers technical training. In fact, management skills, digital marketing, financial literacy, and even English proficiency programmes are claimable if delivered by a registered provider.
Check your levy balance regularly — log in to the employer portal and review your account balance. Accumulated unclaimed balances do not expire indefinitely — HRD Corp has provisions for levy balance management. Use it before you lose it.
Frequently Asked Questions
Can the business owner or director attend claimable training?
Directors who are also employees and receive a salary from the company can generally attend and claim for training under their employment capacity. However, training exclusively for shareholders who are not employees is not claimable. Check the current HRD Corp guidelines as these provisions are occasionally updated.
What if my training provider is not HRD Corp-registered?
You cannot submit a standard SBL-Khas claim for training from unregistered providers. However, some unregistered providers can apply for temporary registration (for specific programmes) — encourage your preferred training provider to register if they are not already. Alternatively, HRD Corp occasionally has schemes for overseas or specialised training — check with HRD Corp directly.
Is there a maximum amount I can claim per training programme?
Claim amounts are subject to the HRD Corp training fee schedule which sets maximum claimable rates per trainer per day, accommodation, and meals. There is no absolute cap per programme, but claims that significantly exceed the fee schedule will be adjusted. Your levy account balance is the effective ceiling — you cannot claim more than your accumulated levy.
We are a very small company with 5 employees — can we still access HRD Corp training?
If you are below the mandatory registration threshold, you can voluntarily register and pay the 0.5% levy to access the scheme. For very small teams, the e-LATiH online platform may offer the most accessible route — individual course enrolments cost as little as RM 50–200 per person for many programmes.
Your Levy Is a Training Budget — Start Using It
HRD Corp is one of the most underutilised business benefits available to Malaysian employers. You are already paying the levy — the question is whether you are claiming your fair share back.
Start by logging into the HRD Corp Employer Portal this week to check your levy balance. Then identify one training programme you have been wanting to run for your team, find an HRD Corp-registered provider, and submit your first SBL-Khas application. Once you have been through the process once, it becomes straightforward.
HRDC Levy & Claimable Training: A Guide for Malaysian Employers