HRDF Levy

By

hrd corp

In March 2021, the existing HRDF levy was extended to cover all industries, with employees of 10 or more.

Business that fall into this category are required to register and make contributions towards the HRD fund.

The rate of levy depends on the number of Malaysian employees as follows:

Number of employees
Registration
Rate of HRDF Levy
5 to 9
Optional
0.5 % of the monthly wages
10 or more
Compulsory
1 % of the monthly wages

Wages will include fixed monthly allowances.

Employers who belong in the new sectors have been given an exemption of HRD levy for three months from 1st March to 31st May 2021.

Update:

Employers of the new sectors are given an exemption of HRD levy until 31 December 2021 under Pembangunan Sumber Manusia Berhad Act 2001, provided the registration is made before 31 December 2021.

Visit HRD Corp website for more details.

ABSS Payroll v13 has been updated to include this requirement.

Similar Posts

  • ABSS Payroll v11

    By

    Released January 2020 Personal Income Tax Rate Update Tax calculations have been updated to comply with the new changes as announced in Malaysian Budget 2020. A new chargeable income band now introduced for resident individual with income exceeding RM 2 million. The fixed income tax rate for non-resident individuals is increased from 28% to 30%…

  • LHDN Payroll Audit

    By

    From January 2019, LHDN began requesting selected employers to provide payroll details for audit. Employers who received notification were required to provide: Employee Master File Payroll Register, and, Payroll Chart of Account. With the release of ABSS Payroll v11 in January 2020, you can now generate the LHDN Audit file when required. To access this…

  • ABSS Payroll v13

    By

    Released August 2021 HRDF Compliance In March 2021, HRDF  coverage was expanded to cover all industries with 10 or more Malaysian  employees. Read more about this here Payroll v13 has been updated to comply with these requirements. Setup HRDF Contribution In the Command Centre, click on HRDF Contribution. Alternatively, click on Command Centre, Setup, then…

  • ABSS Payroll v9.1

    By

    4 statutory compliance updates: EIS Autopay Text File As required by PERKESO statutory regulation, employer must report their Employment Insurance Scheme (SIP) collections no later than the 15th of the following month for every payroll processing period. Employer can perform the monthly submission by uploading the text file which contains the total contributions in the…

  • ABSS Payroll v12

    By

    Released January 2021 Compliance updates Personal income tax rate update Tax calculations have been updated in line with the budget that was tabled. These rates come into effect from 1st January 2021. The tax rate for resident individuals with chargeable income in the band of RM50,001 to RM70,000is reduced to 13%. See below for the…