The Human Resource Development Fund (HRDF) is a programme created to support employers financially in training and upskilling employees. As of March 2021, the scheme covers all industries, including manufacturing, trading, tourism, and technology.
One of the main benefits of this programme is that it provides additional funding to cover training costs. But, as an employer, you might have a lot of questions ranging from “How much can I claim from HRDF?” to “Am I eligible for the HRDF scheme?”
In this article, we will answer all of your queries and guide you step-by-step on how to submit an HRDF claim.
Understanding HRDF training claims
As an employer, it’s crucial to grasp the inner workings of HRDF. This understanding will help you determine how much you can claim and what costs are covered in this scheme.
What does HRDF claimable mean?
An HRDF claimable course is a scheme created by HRD Corp. It supports registered employers with limited resources in training and upskilling workers.
Under this scheme, the organisation will pay fees for in-house or public training courses to the provider out of employers’ levy accounts. HRD Corp will also cover related expenses, such as meal allowances, training materials, accommodations, and transportation fares.
As of April 2021, courses need to be registered under the HRD Corp Claimable Course Scheme before a claim can be made. If not, the organisation can reject claims for any course, even if it is offered by an HRDF training provider.
Who is eligible for HRDF?
Registering for HRDF is a legal requirement for employers with more than ten Malaysian workers. Failure to do so can result in significant penalties, including fines of up to RM10,000. It can also lead to a one-year jail term or both.
However, there are some exceptions. Employers with five to nine Malaysian workers have a choice to register for HRDF or not. Additionally, federal agencies, state governments, statutory bodies, and NGOs involved in welfare activities are exempt from registering.
Read: Comprehensive Guide to HRDF: Benefits, Registration, Contributions, and More
Steps to claim HRDF training
Employers can only submit claims once the grant has been approved and within six months after completing a training course. While making a claim can be straightforward, you need to pay attention to certain details to avoid rejection.
Step 1: Identify eligible training programmes
Employers can find eligible training programmes in the programmes section on the HRD Corp website. You can find a variety of courses, including those under Program Latihan Madani and SME skills development, which are essential for enhancing your workforce’s capabilities. Consider including data science training in your selection, as these skills are increasingly vital for making informed business decisions.
Step 2: Register for the programme
At the website, click the “Login” button and enter your credentials to access your e-TRIS account. Then, select the “Applications” button and find the “Profile Management” button. Once the drop-down menu appears, choose “Training Programmes” and then click on the “Register for Training Programmes” option.
Select the “New Register for Training Programmes” tab, which will take you to the registration form. Fill in the details, such as the course summary, duration of the programme, and fees.
You should also attach supporting documents such as trainers’ curricula vitae (CVs), TTT/TTT Exemption certificates, and supporting evidence like appointment letters and collaboration agreements.
Step 3: Attend the training
To be eligible for the claims, programmes must have a minimum of 10 participants and at least 75 per cent attendance. Participant should also sit for all examinations or complete all of the assigned tasks.
Some programs have different attendance and duration requirements. It is best to check the official website for specific guidelines.
Step 4: Submit claim application
Once your employees have completed training, you can start submitting a claim to HRD Corp to cover your training costs and allowances.
How do I submit my HRDF contribution?
Employers need to pay a monthly levy to their HRDF schemes in accordance with the PSMB Act 2001. This funds employee training and ensures continued assistance from HRD Corp.
Employers can pay their levies manually or online through their e-TRIS accounts. From the “Applications” menu, find the “Levy” option and select “Form 2 – E-Slip Form”.
In the form, select “Levy” in the “Type of Payment” section. Then, key in your payment information, the number of employees and their monthly wages. Next, choose whether you want to pay manually at the bank, using the JomPay code, or through FPX online payment.
The monthly levy rate for employers with 10 or more employees is one per cent of their employees’ monthly wages. Meanwhile, employers with 5 to 9 workers who choose to register for the scheme are charged 0.5 per cent of their employees’ monthly wages.
How to claim HRDF trainer allowance?
From the “Applications” menu of your e-TRIS account, find the “Claims” option and select “Submit Claims with Grants”. You will find a table containing your registered training list. Find the finished course and select the “Claim” button in the Action column.
Next, provide the details of the contact officer and verify all of your training course information. Once that is done, employers should key in their trainer information and attendance details. Finally, enter the claim amount for training fees and related expenses and attach supporting documents.
Where to claim HRDF training?
Employers can choose to submit their HRDF claims either through online or offline channels.
Online submission
Your e-TRIS account offers a convenient platform for submitting claims from home. Sign in with your username or MyCoID and password.
Select “Application” and click on “Submit Claims with Grants” from the “Claims” section. Once there, you need to key in the course details and claim amount and attach supporting documents.
Offline submission
Alternatively, you can submit a claim offline by downloading and printing the PSMB/PGL/1/09 form from PSMB’s official website. You need to fill out the form and attach supporting documents, including course fee quotations, trainers’ profiles, and course contents.
You must send both the form and supporting documents to your nearest PSMB office before the training programme commences.
HRDF claim limit
Employers are only allowed to claim a certain amount of funding for training fees, allowances, and other payments.
How much can I claim for HRDF?
For in-house training, employers can claim a maximum of RM8,000/group/day for HRD Corp Focus Area courses and RM6,000/group/day for employer-specific courses.
For public courses, employers can claim a maximum of RM3,000/pax/day for HRD Corp Focus Area courses and RM1,300/pax/day for employer-specific courses.
Financial assistance for remote online training courses is split into two groups: public online training and in-house training. For public online training, employers can claim a maximum of RM2,000/pax/day for HRD Corp Focus Area courses and RM700/pax/day for employer-specific courses.
For in-house training, employers can claim up to RM8,000/group/day for HRD Corp Focus Area courses and RM6,000/group/day or RM700/pax/day for employer-specific courses.
| Training Type | Course Type | Maximum Claim |
|---|---|---|
| In-House Training | HRD Corp Focus Area Courses | RM8,000/group/day |
| Employer-Specific Courses | RM6,000/group/day or RM700/pax/day | |
| Public Courses | HRD Corp Focus Area Courses | RM3,000/pax/day |
| Employer-Specific Courses | RM1,300/pax/day | |
| Remote Online Training | Public Online Training: HRD Corp Focus Area Courses | RM2,000/pax/day |
| Public Online Training: Employer-Specific Courses | RM700/pax/day | |
| In-House Training: HRD Corp Focus Area Courses | RM8,000/group/day | |
| In-House Training: Employer-Specific Courses | RM6,000/group/day or RM700/pax/day |
Employers can claim the amount quoted by the governing body for professional certifications and examinations. They must provide supporting documents from the certification or examination body that specify the programmes’ fees and costs.
For a complete breakdown of all of the maximum costs that can be claimed, read the Allowable Cost Matrix Booklet by HRD Corp here.
What is the claimable duration of HRDF?
As stipulated in Circular No. 3/2019, the claims must be made within six months of completing a training course. Failure to do so will result in the rejection of the claims.
Claims must be processed within six months in order to be accepted. If a claim is returned after six months, it is automatically rejected, even if it was submitted within the specified time frame.
How do I check my HRDF levy balance?
Employers can check their levy statement via their e-TRIS account. From the “Applications” menu, select the “Levy” option, choose “Levy Statement”, and then “View Levy Statement”. You will be directed to a table that shows all of your past levy transactions and reserves for training programmes like apprenticeships, claimable courses, and events.
How do I withdraw my HRDF claim?
If employers make a mistake in their grant application, they can choose to have their claim withdrawn to make edits. Click on “Claims” in the “Application” menu and select “Search/Withdraw Claims”. Choose which claim you want to withdraw from the table and click on the “Enquiry” button in the “Action” column.
Verify the details provided in the Employer Declaration form and click the “Next” button to proceed to the Withdraw Application form. There, select the reason for withdrawing your application and fill in any additional information in the “Remarks” section. Once that is done, select the “Withdraw” button.
Withdrawal requests take around five working days to process, and employers can only modify their grants once they have been approved.
Conclusion
The HRDF scheme is a crucial programme that helps you, as an employer, bear the costs of training and developing your workforce. Not only that, you enable your company to stay compliant with the law. By following these guidelines on registering for HRDF and making a claim, you can set your sights on preparing your workers for the business challenges ahead.
