28 May 2021
On 1 March 2021, the Pembangunan Sumber Manusia (Amendment of First Schedule) Order 2021 (“Order”) came into effect. The Order amends the First Schedule to the Pembangunan Sumber Manusia Berhad Act 2001 (“First Schedule”) by updating the list of industries for which the levy to the Human Resources Development Fund (“HRDF”) is payable.
The Order, which also expands the categories of employers that will be required to pay a levy to the HRDF, provides among other things that:
- Employers who employ a minimum of 10 Malaysian employees in any of the industries stated in the First Schedule must register with the Pembangunan Sumber Manusia Berhad (“Corporation”) and pay a levy in respect of each employee at the rate of 1% of the monthly wages of the employees;
- Employers who employ between five to nine employees in any of the industries stated in the First Schedule may opt to register with the Corporation, and if so, will be required to pay a levy in respect of each employee at the rate of 0.5% of the monthly wages of the employees; and
- Employers with five or more or but less than 500,000 employees that are non-governmental organisations carrying out activities in respect of a labour union, religious organisation, political organisation, nursing care facilities (including homes for elderly persons, persons with disabilities, , chemical abusers, orphanages or any welfare services) or social work without lodging may also opt to register with the Corporation, and will then be required to pay a levy in respect of each employee at the rate of 0.5% of the monthly wages of the employees.