Being a HRD Corp Registered Employer and Paying Levy:
What Are the Benefits?

1. Access to quality training and development programmes according to your business and industry needs.
2. Access to special funds and grants from various government initiatives for specific purposes from time to time such as Program Latihan MADANI.
3. Up to 3% increase in productivity through trainings under HRD Corp supervision and a well-established training ecosystem.
4. Receive continuous assistance and support from HRD Corp for Registered Employers and their HR department including advisory and consultancy on human resources management matters, levy utilisation, among others.
5. Opens up the opportunity for nomination of the prestigious Human Resource Development Award, a national recognition of employers who actively pay and utilise their HRD levy. This is an advantage to attract and recruit even more capable talents to their organisations.
6. Levy payment is considered as allowable expenses under the Income Tax Act, 1967, which makes HRD levy value-for-money for Registered Employers.

How Levy Contribution Benefits Training Providers

1. Increase demand for training services as levy contribution encourages employers to invest in training, potentially boosting the need for the services of Training Providers.
2. A continuous revenue opportunity for Registered Training Providers as employers can claim up to 100% of training costs for HRD Corp-approved courses, which creates a steady demand for Registered Training Providers.
3. A higher fee ceiling in the new Allowable Cost Matrix (ACM) has introduced an increased allowable fee (up to RM1,500/hour). With this, training providers can charge competitive rates for premium training programmes.
4. Provides support for industry-specific needs as HRD Corp encourages tailored training aligned with industry demands. This enables training providers to specialise and meet specific market gaps.
5. Gain access to government funds for specific purposes and targets from time to time Training providers can tap into government contributions and special finds allocated especially for workforce upskilling.
6. Achieve an enhanced industry credibility by being an HRD Corp-approved training provider. This helps to boost your reputation and trust among employers seeking quality training solutions.

How Levy Contribution Benefits Individuals

1. Providing upskilling and reskilling opportunities for employees to benefit from, including levy-funded training programmes, which enhances their skills and career prospects.
2. Access to high-quality and industry-relevant training. For a course to be claimable using levy, training providers need to ensure that trainings are aligned with industry needs. This subsequently helps to prepare employees for emerging challenges and opportunities.
3. Improved performance and productivity Skills development through HRD Corp levy-funded programmes enhances employee efficiency and effectiveness. This helps to improve a company’s overall performance and productivity.
4. Increase employee competitiveness. As they acquire news skills and certifications, employees will become more competitive in the job market.
5. Career advancement opportunities. Training programmes funded by HRD Corp levy can lead to better job opportunities and career advancement within their current companies or future employers.
6. Better job security. Continuous upskilling ensures employees remain relevant in a rapidly evolving job market, reducing the risk of redundancy.