What is HRD Corp Levy? | Complete Guide for Employers in Malaysia

Cathrynn Wong
6 days ago
2 min read

If you’re running a business in Malaysia, chances are you’ve heard about the HRD Corp Levy. But what exactly is it, why do employers need to pay it, and how can your company benefit from it? Let’s break it down in simple terms.

What is HRD Corp Levy?

The HRD Corp Levy (Human Resource Development Corporation Levy) is a mandatory payment imposed on employers in Malaysia who are registered under the Human Resources Development Act 2001 (Act 612).

Employers contribute a small percentage of their employees’ monthly wages (usually 1% of the monthly salary) to HRD Corp. This levy is then pooled into a fund that allows employers to claim back for employee training and development programs.

In short – you pay the levy, and you get to use it for your team’s skills upgrade, HRD Corp claimable courses, and professional development.

Who Needs to Pay HRD Corp Levy?

Not every company is required to contribute. Employers are liable if they:

Belong to industries listed under HRD Corp’s scope (manufacturing, services, mining & quarrying, etc.).
Have at least 10 Malaysian employees.

Employers with 5–9 Malaysian employees can choose to register voluntarily.

Why is HRD Corp Levy Important?

Paying the levy isn’t just a compliance requirement—it’s also a business advantage. Here’s why:

Claimable Training Programs – Employers can use levy funds to pay for certified training programs such as digital marketing, HR skills, leadership, branding strategy, Xiao Hong Shu training, or even AI marketing courses.
Employee Upskilling – Keeps your team competitive with the latest industry knowledge.
Cost-Saving – Instead of spending company budget, you can claim training expenses from your levy contributions.
Government Compliance – Avoid fines or penalties for non-compliance.

How to Claim HRD Corp Levy?

Register your company with HRD Corp.
Contribute monthly levy (1% of employees’ wages).
Enroll employees in HRD Corp certified training programs.
Submit claims through HRD Corp online system.
Get reimbursed for training costs.

Example of HRD Corp Claimable Trainings

At Thynk Boundless Marketing, our programs are HRD Corp claimable, such as:

META (Facebook & Instagram) Marketing Training
TikTok & Xiao Hong Shu Marketing Training
Google SEO & SEM Training
Brand Marketing Strategy Training
Human Resource & Leadership Training

Key Takeaway

The HRD Corp Levy is not just a mandatory fee – it’s a smart investment into your workforce.

By leveraging HRD Corp claimable training, your business can save money while empowering employees with digital skills, leadership skills, and future-ready knowledge.

Want to know which of our HRD Corp training programs fits your business?