Human Resources Development Fund (HRDF)
Part 2 of 4
1. What is Human Resources Development (HRD) levy?
Section 14(1) of PSMB Act, 2001 stipulates that there shall be paid by every employer to whom the PSMB Act, 2001 applies, a HRD levy in respect of each of his employees at the rate of one per centum (1%) of the monthly wages of the employee.
Section 15(2) of PSMB Act, 2001 stipulates that there shall be paid by employer a HRD levy in respect of each of his employees at the rate of 0.5 per centum of the monthly wages of the employee (applicable to employer who opts to be registered).
An employer who is liable to pay the HRD levy shall pay those levies for the first and subsequent months' wages commencing from the date the employer becomes liable as stated under the Regulation 7 of the Pembangunan Sumber Manusia Berhad (Registration of Employers and Payment of Levy) Regulations 2001. The payment of the HRD levy is the responsibility of employers. Employers are not permitted to deduct the wages of employees under any circumstances for the payment of the levy.
2. When to make payment for HRD levy
HRD levy is to be made no later than the 15th date of the month in which the payment falls due, as stated under Regulation 8(1) of the Pembangunan Sumber Manusia Berhad (Registration of Employers and Payment of Levy) Regulations, 2001.
Failure of payment application before the stipulated time will result in;
Fined not exceeding RM20,000.00 (Ringgit Malaysia Twenty Thousand) or to imprisonment for a term not exceeding two (2) years or both (on conviction)
Yearly interest of 10 per cent in respect of each day of default or delay in payment
Any payment for interests accrued must be made by using the ESLIP. The quantum of interest to be paid will be determined by the HRDF.
3. How to make payment for HRD levy?
All payments / arrears / interests of levy must be made through HRDF collection agents i.e; Public Bank Berhad (PBB) and RHB Bank Berhad.
Payments made are through ESLIP that can be downloaded and printed out from the ETRIS. Each ESLIP is allowed for one (1) cheque transaction only. However, employers who wish to pay arrears for multiple months are allowed to use a single ESLIP with one (1) accumulated payment cheque.
A copy of the processed ESLIP (machine-printed or duly acknowledged by an authorised bank officer and date-stamped) will be returned to the employers and should be kept as prima facie evidence of the levy/arrears/interest payment. The copy of the ESLIP may vary based on the opted bank.
PBB Bank : The copy will be in the form of bank deposit slip
RHB Bank : The copy will be in photocopied ESLIP
JOMPAY : PSMB Biller Code is 4044
The acceptable modes of payments are as follows;
The processed payment will be updated in three (3) working days after the payments made. Employers are advised to check the levy payment status via the Levy Statement in the ETRIS.
Shall the payment yet to be reflected in the Levy Statement, kindly inform HRDF by providing a copy of the ESLIP for our checking purposes.
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