HRD Corp: Avoid 15% Deduction to Your HRDF

IMPORTANT Notice: Mark to Remember

Your company’s HRD Corp Levy Fund may face a 15% deduction after June 30, 2024!

Why?

As part of Budget 2024, Prime Minister Yang Amat Berhormat Dato' Seri Anwar Ibrahim initiated the Program Latihan Madani (PLM). This program aims to empower the country's micro-SMEs and communities in need through training and development opportunities. To support this initiative, 15% of your company’s unused levy fund for the year 2023 will be utilized.

Who Will Be Affected?

Your company’s HRD Corp levy balance will face a 15% deduction if both of the following criteria are met:

1. Levy balance of RM 50,000 and above for the year 2023.
2. Levy utilization rate of less than 50% from the employer's contributions from January 1, 2023, to December 31, 2023.

Example of the 15% PLM Deduction

The 15% deduction is calculated using the following formula:

(Levy Collection in 2023 - Levy Utilization in 2023) x 15%

To explain further, let’s look at some scenarios extracted from the HRD Corp website:

How to Avoid PLM Deduction?

To steer clear of PLM deductions, ensure your company meets one of the following criteria by June 30, 2024:

• Utilizes over 50% of its HRD Corp levy fund.
• Maintains a levy balance of RM 50,000 or below.

Please note that the deduction is based on actual usage only, not on planned or booked training sessions.

For more details, visit the HRD Corp official portal.

https://supportcentre.hrdcorp.gov.my/portal/en/kb/articles/faq-program-latihan-madani-employer-s-circular-no-2-2024#

AJobThing offers unparalleled opportunities to connect with top talent effortlessly.

By posting your job ad with us, you not only gain access to a diverse pool of skilled professionals but also streamline your hiring process.

We look forward to helping you find the perfect match for your next opportunity.

AJOBTHING: Your All-in-One Hiring Solution

With AJOBTHING, you get everything you need for hiring in one place. With AJobThing recruitment platform, your job ads will display on mutliple platforms that target up to 5M candidates such as Maukerja, Ricebowl, Google, Facebook and more! Our HR libraries are packed with helpful resources, and our recruiter advice is personalized to your hiring needs. No more juggling multiple platforms. With AJOBTHING, everything you need is in one convenient place. Join us today and see how we can make hiring simpler and more effective for you.

Urgently seeking candidates to hire?
Look no further! AJobThing offers an effective hiring solution with our instant job ad feature. Hire in just 72 hours! Try Now!

Read More on AJobThing:

• Career Fair Recruitment Strategy: Benefits and Employer Planning Guide
• Tips for Interviewer: How to Prepare and Conduct a Virtual Interview
• Key Performance Indicator (KPI): Definition, Types, Dashboard, Criteria and Examples
• EPF Account 3 (Akaun Fleksibel): A Quick Guide to EPF Account Restructuring
• E-Invoicing Malaysia: A Comprehensive Guideline for Business