What Is Human Resource Development Fund (HRDF)

What Is Human Resource Development Fund (HRDF)

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Objective of HRDF
  1. Promote and stimulate manpower training.
  2. Assess and determine employee training with human resource needs of industries.
  3. Retain and upgrade skills of the employees and apprentices.

By contributing to this fund, the contribution will enable the company’s employee to receive training and skills upgrading to develop quality human capital based on knowledge and innovation.


Who Subject to HRDF
  • Citizen of Malaysia
  • Employed for Wages
  • Not domestic servant
  • Under contract of wages

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HRDF Scope of Monthly Wages 
  • Basic salary
  • Leave pay
  • Fix allowance
  • Arrears of wages

Exemption of HRDF
  • Employee Provident Fund (EPF)
  • Travelling allowance
  • Reimbursement of expenses
  • Gratuity
  • Bonus
  • Commission
  • Allowance paid to apprentice under apprenticeship contract

Scope of HRDF for Certain Sectors

There are three industries in Malaysia which are required to be registered with the HRDF. What are these 3 industries? Well, the 3 industries are manufacturing industry, mining industry and service industry.

  • Manufacturing sector
    • Electrical and electronic
    • Metal product
    • Mineral product
    • Food and beverages
    • Transport equipment
    • Plastic
    • Wood and wood based and cork
    • Machinery
    • Industrial chemicals
    • Paper and pulp
    • Iron and steel
    • Rubber product
    • Furniture and fixtures
    • Printing and publishing
    • Textile and apparel
    • Petroleum and coal
    • Optical and photography
    • Glass and glass product
    •  Petroleum refinery
    • Ceramic
    • Tobacco
    • Leather
  • Mining and quarrying sector
    • Petroleum and gas extraction
    • Mineral and stone quarrying
  • Service sector
    • Energy
    • Hypermarket/supermarket/departmental store
    • Direct selling
    • Commercial land transport and railway transport services
    • Warehousing services
    • Port services
    • Hotel industry
    • Freight forwarding
    • Shipping
    • Air transport
    • Tour Operating business (In-bound only)
    • Postal or courier
    • Telecommunication
    • Research and developtment
    • Engineering support and maintenance services
    • Security services
    • Computer services
    • Advertising
    • Private hospital services
    • Higher education
    • Latihan Korporat
    • Gas, stream and air-conditioning supply
    • Water treatment and supply
    • Sewerage
    • Waste management and material recovery services
    • Food and beverage services
    • Production of motion picture, video and television programme, sound recording and music publishing
    • Information service
    • Tourism enterprise
    • Building and landscape services
    • Event management services
    • Early childhood education
    • Health support services
    • Franchise
    • Sale and repair of motor vehicles
    • Private broadcasting services
    • Driving school
    • Veterinary services

HRDF Rates
  • 10 or more Malaysian employees is 1% of the wages for service sector, manufacturing sector and mining & quarrying sector.
  • 5-9 Malaysian employees (given option to register) is 0.5% 0f the wages for service sector, manufacturing sector and mining & quarrying sector.

 
It is employer obligation to pay HRDF when certain conditions is met and able to provide training to increase the skills of employees and retain them. If you need assistance, please call us at 011-1217 8183[/vc_column_text][/vc_column][/vc_row]