HRD Corp Levy
Payment Guide
Everything a Malaysian employer needs to pay the HRD Corp levy correctly and on time — who pays, how much, how it's calculated, when it's due, and how to submit it through the eTRiS portal.
What is the HRD Corp levy?
The Human Resource Development (HRD) levy is a monthly contribution that registered employers pay into the Human Resource Development Fund under the Pembangunan Sumber Manusia Berhad (PSMB) Act 2001. The fund is managed by HRD Corp — the body formerly known as HRDF.
Since 1 March 2021, the levy has applied across effectively all industries, with only a few exceptions such as the Federal and State Governments, statutory bodies, and NGOs engaged in social and welfare work. The levy you pay isn't a tax lost to the system — it becomes a pool you can claim back to train and upskill your Malaysian employees.
Who must pay, and how much
Your obligation depends on how many Malaysian employees you have. Once you cross the threshold, registration with HRD Corp is mandatory.
| Malaysian employees | Registration | Levy rate |
|---|---|---|
| 10 or more | Compulsory | 1% of monthly wages |
| 5 to 9 | Optional (opt-in) | 0.5% of monthly wages |
| Fewer than 5 | Not required | — |
If you registered under the optional category at 0.5% and your workforce reaches 10 employees, the rate steps up to 1% — and under the PSMB Act you continue contributing at 1% from that point, even if headcount later dips below 10.
How the levy is calculated
The levy is charged on each employee's levy-able wages, which means:
- Included: basic salary plus fixed allowances paid every month.
- Excluded: bonuses, commissions, overtime, and other variable or non-fixed allowances.
On the people side, the levy covers any Malaysian citizen employed under a contract of service — full-time, contract or permanent. A director drawing a salary counts as an employee; a director paid only director's fees does not. Domestic servants are excluded.
An employee earns RM4,500 basic salary plus a RM500 fixed monthly allowance. Levy-able wage = RM5,000. At the 1% rate:
Repeat for each employee and total it — that's your monthly levy.
When the levy is due
The levy for a given wage month must be paid by the 15th of the following month. For example, the levy on October wages is due by 15 November.
- If the 15th falls on a public holiday, the deadline moves to the last working day before the 15th — not after it.
- Don't assume a long weekend buys you extra time. HRD Corp occasionally issues a formal deferment circular for a specific month, but an extension only applies when one is actually published.
How to pay through eTRiS
Payments are made online through eTRiS, the HRD Corp employer portal. After registration, HRD Corp emails you an approval letter with your login credentials.
Log in to the HRD Corp Portal
Sign in to eTRiS at hrdcorp.gov.my using your registered employer user ID and password.
Open Levy › Levy Payment
Select the contribution month you're paying for from your outstanding levy list.
Verify the amount
Check the system-calculated figure against your payroll — headcount and levy-able wages should match your records before you confirm.
Pay via FPX or JomPay
Complete payment through FPX online banking or JomPay, then save the receipt for your compliance file.
Late payment & penalties
Missing the deadline is expensive on two fronts — the interest that builds on what you owe, and the statutory penalties for non-compliance.
Interest of 10% per annum accrues on the outstanding levy, calculated by the number of days you're late. Beyond that, failing to register or pay can attract a fine of up to RM20,000, imprisonment of up to two years, or both.
There's a second reason not to let levy pile up unused: if you make no training claims within two years, that levy can be forfeited (the system retains up to RM10,000 of the balance). Paying on time and actually claiming your training is how you get full value from the fund.
Levy Payment FAQs
Never Miss a Levy Deadline.
We handle your HRD Corp registration, monthly levy submission and training claims — so payments are always on time and none of your levy goes to waste.