If your company has 10 or more Malaysian employees, you are already paying into HRDF every month. Most owners know the deduction exists. Far fewer know what it is for, or what happens if nobody ever spends it.
Here is the whole thing, without the acronyms getting in the way.
HRDF and HRD Corp are the same thing
HRDF stands for Human Resources Development Fund. It is the national fund Malaysian employers contribute to so their staff can be trained.
HRD Corp, the Human Resource Development Corporation, is the body that runs it.
The fund was renamed along the way, which is why you will see both names used interchangeably, sometimes in the same government document. If someone says “claim it from HRDF” and someone else says “claim it from HRD Corp”, they mean the same money.
Who pays the levy, and how much
- 10 or more Malaysian employees: registration is mandatory, at 1% of total monthly wages.
- 5 to 9 Malaysian employees: registration is voluntary, at 0.5% of monthly wages.
The levy is calculated on monthly wages, and it is paid by the employer. It is not deducted from the employee.
What “HRDF claimable” means
A programme described as HRDF claimable, or in current wording an HRD Corp Claimable Course, is one registered under the scheme. An employer can claim its cost back from their own levy balance.
Two points trip people up:
- It is not a grant or a subsidy. It is your own contributions coming back to you. You are not asking anyone for money.
- The course has to be registered, and the grant approved, before the training happens. Approval after the fact is not possible.
You may still see the name SBL-Khas. That was the previous name of the scheme; the current one is HRD Corp Claimable Course. Same scheme, older label — there is more on that, and on which programmes qualify, in HRD Corp claimable courses.
What the levy can be spent on
The fund exists to develop the people you already employ: leadership, sales, communication, technical and compliance training, among others.
In practice a claim covers mainly the course fee and allowances. The training provider can only claim the course fee itself; allowances and transport are claimed by the employer, from the same levy account. On team building programmes, transport can be claimable as well — bus rental, and in some cases flight tickets — subject to HRD Corp’s approval.
Anything past that depends on the claim type and on what you submit, which is worth asking your provider before you book rather than after.
Leave it idle and you can lose it
This is the entire reason the topic is worth ten minutes of an owner’s time. The choice is not “spend money on training or don’t”. The choice is spend a fund you have already paid into, or risk losing it.
For a company with 40 staff on an average wage, 1% of monthly wages compounds into a real number over two years. None of it does any work while it sits there.
Common questions
Is HRDF compulsory?
For employers with 10 or more Malaysian employees, yes. With 5 to 9, registration is voluntary at 0.5% of monthly wages.
Can employees claim it themselves?
No. The levy belongs to the employer, and claims are made by the employer.
Does the levy cover the full cost of a course?
It depends on your balance and on which cost components apply. If your balance covers the programme, your out-of-pocket cost for the training itself can be nothing.
What is the difference between HRDF and HRD Corp?
None, in practice. HRDF is the fund; HRD Corp is the body that administers it. The name changed; the money did not.
How do I check my balance?
Through your HRD Corp employer portal, under your company’s levy account.
Where to go next
- HRD Corp claimable courses — which programmes qualify, and what your training costs after the claim.
- How to claim, step by step — documents, deadlines, and where SMEs lose their claim.
This article 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.