Don’t Lose Out on HRD Corp Benefits: Understanding Levy Forfeiture
The Pembangunan Sumber Manusia Berhad (HRD Corp) plays a crucial role in promoting employee training and development in Malaysia. Employers contribute a levy to the HRD Corp fund, which can then be used to claim financial assistance for various training programs. However, Section 25 of the PSMB Act 2001 outlines a rule regarding unclaimed levy contributions.
What Happens to Unclaimed Levies?
If an employer fails to claim any benefits from the HRD Corp fund within a specific period, they may lose the right to claim those unclaimed contributions. This period is determined by the HRD Corp Board and was recently revised to be two years from January 1st, 2020. This change aims to encourage employers to actively invest in skill development for their employees.
Understanding Levy Forfeiture Through an Example:
Imagine a company registered with HRD Corp in January 2022. They contribute a levy of RM10,000 per year. Let’s say they haven’t claimed any benefits by January 2024 (two years after registration). According to Employers’ Circular No. 7/2019, the unclaimed RM20,000 (contributions for 2 years) will be forfeited.
Levy Balance Forfeiture Formula:
Here’s a breakdown of how the forfeiture amount is calculated:
Levy Balance – Claims Made (within 2 years) – Forfeiture Amount + Levy Contributed (within 2 years)
In this example:
RM20,000 (Levy Balance) – RM0 (Claims Made) – RM20,000 (Forfeiture Amount) + RM10,000 (Levy Contributed in 2024)
This results in a levy balance of RM10,000.
Stay Informed and Claim Your Benefits!
Remember, unclaimed levies are forfeited after two years. Regularly audit your HRD Corp claims to ensure you utilize the benefits available for your employees’ development. By understanding levy forfeiture and actively claiming benefits, you can utilize HRD Corp’s resources to empower your workforce and achieve your business goals.
For a detailed breakdown and official guidelines, visit the HRD Corp Support Centre:
https://supportcentre.hrdcorp.gov.my/portal/en/kb/articles/hrd-levy-forfeiture
#HRDCorp #HRMalaysia #EmployeeBenefits #LevyForfeiture #MalaysiaHR #HRManagement #BusinessTips #HRDCorpBenefits #MYWave
