If your company has 10 or more Malaysian employees, you’re already paying into HRD Corp every month — whether you use it or not. The question isn’t whether you can fund your team’s training. It’s whether you’re leaving that money on the table.
This guide breaks down exactly how HRD Corp claimable training works in 2026, and what you can claim. It also covers the steps to turn a levy you’re already paying into real capability for your people — with as little out-of-pocket cost as possible.
What is the HRD Corp levy?
HRD Corp (the Human Resource Development Corporation) runs Malaysia’s national training fund. Registered employers contribute a monthly levy based on their payroll:
New to the acronym? Start with what HRDF actually is — the fund, the levy and the names, in plain terms.
- 1% of monthly wages — mandatory for employers with 10 or more Malaysian employees.
- 0.5% of monthly wages — for employers with 5 to 9 Malaysian employees who register voluntarily.
That money doesn’t disappear into a government account — it builds up in your HRD Corp levy account, earmarked for developing your workforce. Used well, it’s one of the most generous training subsidies available to Malaysian SMEs. Left untouched, it’s simply a cost.
The main route for most SMEs is the HRD Corp Claimable Courses scheme (formerly known as SBL-Khas): course fees paid to your training provider straight from your levy account. Certain related allowances are covered too.
→ What is claimable, and which AZEO programmes qualify
Are you eligible?
To claim under HRD Corp Claimable Courses, you generally need to:
- Be a registered employer with HRD Corp.
- Be up to date on your levy — employers with levy arrears or interest can’t apply for grants until it’s cleared.
- Choose an HRD Corp claimable course from an approved training provider.
- Submit your grant application before the training starts — retroactive claims are not allowed.
How to claim, step by step
- Register with HRD Corp (if you haven’t already) and keep your levy contributions current.
- Identify the capability gap — the skill or performance problem you actually need to fix (this is where a good provider earns its keep).
- Choose a claimable course and provider whose programme maps to that gap.
- Apply for the grant on the HRD Corp portal — before the training date. Your provider will usually help you prepare the application.
- Get approval, then run the training.
- HRD Corp pays the provider from your levy account, and settles any eligible allowances with you.
Two practical limits worth knowing before you apply:
- Course fees are paid from your levy account, subject to a 4% service fee.
- In-house (your premises, a hotel, or an external venue): minimum 2, maximum 50 participants. Public programmes: minimum 1, maximum 9.
Note: schemes, rates and eligibility are set by HRD Corp and can change. AZEO advises you on what applies to your specific situation before every programme.
Done properly, your team gets developed and your cash-flow barely moves — because you’re spending a levy you’d already paid.
Where most SMEs leave value on the table
- Treating training as a tick-box. Claiming the levy is easy; getting a return on it takes a programme designed around real business outcomes, not a generic course.
- Only training when there’s a problem. A planned annual calendar uses your levy fully and builds capability before it’s urgent.
- Not knowing what’s claimable. Assessment, leadership pipelines, and structured L&D can often be funded — many owners never ask.
Frequently asked questions
Is HRD Corp training really “free”?
Not free — but funded by a levy you already pay. The course fee is drawn from your own levy account (minus a 4% service fee), so the marginal cost to your business is often minimal.
My company only has 6 employees. Can I claim?
Yes — employers with 5 to 9 Malaysian employees can register voluntarily at 0.5% and access the claimable-courses scheme.
Can I claim after the training?
No. The grant must be applied for and approved before the course begins. Retroactive claims aren’t allowed.
What kinds of training are claimable?
A wide range — leadership, sales, communication, productivity, team building and more — as long as the course is HRD Corp claimable and delivered by an approved provider. See our training programmes and HRD Corp claimable courses.
Can consultancy or assessment work be claimed?
Certain structured L&D, assessment and programme-design work can qualify under applicable schemes. We’ll confirm what applies to your engagement — see our training programmes.
This guide is general information, not formal HRD Corp advice. Scheme rules, rates and eligibility are set by HRD Corp and may change; always confirm current requirements for your situation. AZEO provides full guidance on applicable claims as part of every engagement.