The Ultimate Guide To HRDF in Malaysia

Did you know many Malaysian employers miss out on valuable training grants simply because they don’t fully understand HRDF?
Whether you’re an SME or a growing startup, this guide breaks down everything you need to know about HRDF—from registration and contributions to claiming training support and avoiding penalties. You’ll learn how to make the most of this scheme to upskill your team and support long-term business growth.

TL;DR: Why HRDF Matters for Your Business

The HRDF (Human Resources Development Fund) helps Malaysian employers claim back training costs for their staff. If you have 5 or more Malaysian employees, you may need to register and contribute a monthly levy. In return, you can fund skills training, boost productivity, and improve employee retention.

In this guide, you’ll learn:

• ✅ What HRDF is and who must register
• 📌 How much to contribute and when to pay
• 💸 How to claim HRDF for employee training
• ⚠️ Common compliance mistakes and how to avoid penalties

Don’t leave free training money on the table. Learn how to register, claim, and maximise your HRDF benefits today.

What Is HRDF and Who Needs to Register?

What Is HRDF?

HRDF stands for Human Resources Development Fund, overseen by HRD Corp under the Pembangunan Sumber Manusia Berhad Act 2001. The fund enables Malaysian employers to support employee training and skills development through a government-backed levy scheme.

This levy, once contributed, becomes HRDF claimable, allowing employers to reclaim training costs and grow a more capable workforce.

Who Must Register?

You must register with HRD Corp if your company falls under the selected sectors and:

• Employs 10 or more Malaysian staff (mandatory), or
• Employs 5–9 Malaysian staff (optional but encouraged)

HRD Corp includes industries like services, manufacturing, and mining.

Why Contribute to HRDF: Key Benefits for Employers & Employees

Still unsure about the need for HRDF contribution? Here’s why it matters.

Benefits for Employers

• Reduce training costs by claiming back fees
• Upskill teams to improve productivity and innovation
• Boost staff morale and retention through career development
• Access HRD Corp’s approved training programmes and grants

Benefits for Employees

• Receive regular, high-quality training
• Improve technical and soft skills
• Gain certifications to boost career prospects

Employers that consistently invest in employee development tend to grow faster and perform better. HRDF makes that investment easier.

How to Register Your Company with HRDF

Step-by-Step: How to Register

1. Go to the HRD Corp Registration Portal
2. Prepare these documents:
   • Company SSM registration
   • Latest EPF statement (Form A)
   • Business profile or organisation chart
3. Register via e-TRiS portal
4. Wait for approval and receive your Employer Number

Once registered, you can start making your contributions and apply for training grants.

HRDF Levy Rates and Payment Deadlines

Knowing the HRDF levy rate and when to pay it can save you from penalties.

How Much to Contribute

Company Size	Contribution Rate	Mandatory?
10+ employees (Malaysian)	1% of monthly wages	Yes
5–9 employees (Malaysian)	0.5% of monthly wages	Optional

Wages include basic salary and fixed allowances.

✅Read more about Levy Calculation Guide – HRD Corp

When to Pay

• Deadline: 15th of each following month
• Payment Platform: e-TRiS portal
• Late payments result in penalties or claim suspension

To stay compliant, set automated calendar reminders or delegate this responsibility to your finance team.

How to Claim HRDF for Employee Training

You’ve contributed to HRDF—now how do you get your money back?

Step-by-Step Claiming Process

1. Login to e-TRiS portal
2. Submit a Training Grant Application at least one day before training
3. Attach:
   • Training programme details
   • Quotation
   • Trainer credentials
4. Conduct the training
5. Submit claims within 30 days post-training with:
   • Attendance records
   • Payment receipts
   • Evaluation forms

💡 Only HRD Corp-approved training providers qualify. Check the list before registering.

What’s HRDF Claimable?

• Course fees
• Training materials
• Trainer allowances
• Daily allowance (for outstation training)
• Meals and accommodation (if applicable)

Common Compliance Mistakes and How to Avoid Penalties

HRDF offers great benefits—but non-compliance could cost you.

5 Costly Mistakes

1. Missing payment deadlines
2. Submitting claims without proper documents
3. Using unregistered training providers
4. Delaying claims beyond 30-day period
5. Failing to update employee headcount

How to Stay Compliant

• Pay your levy on time every month
• Bookmark HRD Corp’s legal & compliance page
• Designate an HR staff to manage HRDF processes
• Attend HRD Corp briefings and updates

Penalties include claim rejections, surcharges, or even legal action. Compliance ensures smooth access to training funds.

Conclusion: Make the Most of HRDF to Grow Your Business

HRDF isn’t just a legal obligation—it’s a strategic advantage. By registering, contributing, and claiming correctly, your business can:

1. Cut training costs
2. Improve workforce capability
3. Strengthen employee loyalty
4. Boost long-term growth

Whether you’re a startup founder or small business owner, don’t miss out on the support HRDF offers. Take the first step by registering today.

👉 Explore our business compliance solutions and let Grof take care of the admin while you scale smarter.

FAQs About HRDF

1. What types of training can I claim under HRDF?

You can claim for:

• Technical & vocational training
• Leadership & soft skills courses
• Digital and IT certifications
• Safety and compliance training (Only with HRD Corp-approved providers.)

2. What happens if I don’t pay the levy on time?

You may face:

• Penalties and late charges
• Suspension of claims
• Potential legal action for non-compliance

3. How long does it take to get your claim approval?

Typically 10–14 working days if all documents are complete and in order.

4. Can foreign workers be included in HRDF training claims?

No. HRDF training claims apply only to Malaysian citizens. Foreign workers are not eligible.