Free tool
HRDC Levy Calculator
Enter your number of Malaysian employees and their average monthly salary to see your HRD Corp (formerly HRDF, also called HRDC) levy and the training budget you build up each year.
Your yearly training budget
RM —a year
- Monthly wage billstaff × salary
- —
- Monthly levy× levy rate
- —
- Yearly levy× 12 months
- —
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Get a Free ProposalHow the HRD Corp levy is calculated
Employers with 10 or more Malaysian employees must register with HRD Corp and pay a levy of 1% of monthly wages. Employers with 5 to 9 Malaysian employees can register voluntarily and pay 0.5%. The levy is calculated on basic wages plus fixed allowances, and only Malaysian citizens count as employees for this purpose. Since the PSMB Act 2001 was expanded in 2021, it covers employers in all sectors except government, statutory bodies and some non-profit organisations.
Mandatory
10+
Malaysian employees
1% of monthly wages
Optional (voluntary)
5–9
Malaysian employees
0.5% of monthly wages
- Monthly wagesBasic + fixed allowances
- Monthly levyPaid to HRD Corp
- Yearly training budgetYours to use on training
HRD Corp registration and levy rate by number of Malaysian employees.
FAQ
HRDC levy: common questions
What is the HRDC levy rate?
1% of monthly wages for employers with 10 or more Malaysian employees, and 0.5% for employers with 5 to 9 who register voluntarily.
Do foreign employees count?
No. Under the PSMB Act 2001 an employee means a Malaysian citizen, so the registration threshold and the levy are based on Malaysian employees only.
What happens to the levy I pay?
It goes into your levy account with HRD Corp. You use it by applying for training grants for your employees.
Sources: HRD Corp: Employers · HRD Corp: Employers FAQ · Last updated
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