The Types of HRD Corp Levy, Explained — Altomate Growth
HRD Corp · Guide

The Types of HRD Corp
Levy, Explained

The HRD Corp levy has two sides — the contribution you pay in (rates and payment types) and the schemes you claim it back through. Here's how both work, and how they connect.

3 payment types
1% / 0.5% rates
Updated July 2026
etris.hrdcorp.gov.my Form 2 · E-Slip SELECT PAYMENT TYPE Current levyPaid within the period · by the 15thSelected Levy in arrearsSubmit Form 3 (Schedule of Arrears) first Interest10% per annum on the overdue amount Next → One slip can cover more than one type
The big picture

Two sides of the same levy

The HRD Corp levy isn't a one-way cost. There are really two families of "type" to get straight — the levy you pay in, and the schemes you claim it back through to train your people:

  • Paying in — your contribution class (the rate) and the payment type (current, arrears or interest).
  • Claiming back — the training schemes (SBL, SBL-Khas and others) that turn your levy into funded training.

This guide walks through both, and shows how they connect.

Paying in · rates

The two contribution classes

Your rate depends on headcount. The levy is charged on each Malaysian employee's basic salary plus fixed allowances; bonuses, commissions and variable allowances are excluded.

Mandatory
1%
for employers with 10 or more Malaysian employees
Optional
0.5%
for employers with 5 to 9 Malaysian employees who opt in
Paying in · payment types

The three types of levy payment

Every payment you make in eTRiS is one of three types, selected on the Form 2 E-slip:

TypeWhen it appliesIn eTRiS
Current levyPaid on or before the 15th of the following month.Payment Type: Levy
Levy in arrearsThe unpaid levy itself, paid after the deadline.Submit Form 3 first, then Payment Type: Arrears
Interest10% per annum on the overdue amount, by days late.Payment Type: Interest
Claiming back · schemes

The schemes your levy funds

When you claim, you apply under a scheme code that matches the training. The ones employers meet most often:

SchemeWhat it's for
HRD Corp Claimable Courses (SBL-Khas)Pre-registered courses with the fee deducted straight from your levy — no upfront payment. The default route since 1 April 2021.
SBL — Skim Bantuan LatihanThe conventional route: you pay the provider upfront, then claim reimbursement.
SLB — Skim Latihan BersamaJoint training arranged across several employers.
ALATTraining facilities and renovation.
ITS — Industrial Training SchemeStructured industrial and apprentice-style training.
OthersCBT (computer-based), FWT (future workers), IT, OJT (on-the-job) and RPL (recognition of prior learning).
Claiming back · the key choice

SBL vs SBL-Khas

Most employers are choosing between the two main routes:

Reimbursement
SBL
You pay the provider upfront, then claim the cost back from your levy afterwards.
Direct deduction
SBL-Khas
No upfront payment — HRD Corp pays the registered provider straight from your levy. Only HRD Corp-registered courses qualify.
Since 1 April 2021

Under Circular 3/2021, training providers must register their programmes as HRD Corp Claimable Courses, and grants generally run through SBL-Khas — which is why "claimable course" and "SBL-Khas" are used to mean the same thing.

Claiming back · the process

How to claim: apply before you train

1

Check eligibility

You must be a registered employer with a sufficient levy balance, training Malaysian employees (with EPF/SOCSO), using an HRD Corp-registered course and provider.

2

Apply for the grant in eTRiS

Application › Grant › Apply Grant, then pick the scheme (HRD Corp Claimable Courses: SBL-Khas), your training provider and the course.

3

Apply before training starts

Submit at least one day before the training date — providers often advise around 14 days. Retroactive claims aren't allowed.

4

Attach the documents

Quotation or invoice, trainer profile, and course content. A complete application is usually approved within a few working days.

5

Train, then claim

Under SBL-Khas the provider claims the course fee; you claim allowances and consumable materials within six months of completion.

Where the two sides meet

Arrears and interest block your claims

⚠ Pay on time to keep claiming

The two sides are linked. Under Section 20.5 of the PSMB Act 2001, an employer with levy arrears or interest — or an insufficient levy balance — cannot apply for a training grant. Paying your current levy on time is exactly what keeps your funded-training tap open.

Recognised · Registered · Accredited
HRD Corp Registered Training Provider HRD Corp Claimable IAAP accredited PERKESO recognised
Quick answers

Frequently Asked Questions

Under SBL you pay the provider upfront and claim the cost back later. Under SBL-Khas (HRD Corp Claimable Courses) there's no upfront payment — HRD Corp pays the registered provider directly from your levy, and only HRD Corp-registered courses qualify. Since 1 April 2021, most claiming runs through SBL-Khas.
No. HRD Corp deducts the fee from your levy and pays the registered provider directly. A provider may request up to 30% upfront, but only with your consent.
Before the training begins — at least one day before the date, though providers often advise around 14 days for confirmation. Retroactive applications aren't accepted.
No. Under Section 20.5 of the PSMB Act 2001, outstanding arrears or interest — or an insufficient levy balance — make you ineligible to apply for grants. It's another reason to keep your current levy paid on time.
Under SBL-Khas the provider claims the course fee, while you claim allowances and consumable materials within six months of training completion, after the provider's claim is approved.

Keep Your Levy Current.

We calculate and submit your HRD Corp levy every month, on time — so you never deal with Form 3, arrears or interest again.