Implementation of Program Latihan Madani (PLM)

June 4, 2024

The government is launching the Program Latihan Madani (PLM) to support skills development for micro-SMEs & underserved communities.

Here’s the deal

HRD Corp will allocate 15% of your unused levy balance from 2023 to the PLM program.

Levy deduction applies to employers with:

Unutilized levy balance exceeding RM50,000 (2023)
Less than 50% levy utilization rate (2023)

Imagine you pay a fee (levy) to the government for your employees. This fee can be used for training programs.

Levy Utilization Rate: This refers to the percentage of that fee you actually used on training programs for your employees during the year 2023 (from January 1st to December 31st).
Less Than 50%: This means you used less than half of the total levy amount you paid on training programs.

In simpler terms:

You paid a levy to the government for your employees.
You could have used that money to send your employees to training programs.
However, you didn’t use up at least half of the money available for training in 2023.

This is important because:

Starting in January 2025, a portion of your unused levy amount (if applicable) might be allocated to a new program called PLM (Program Latihan Madani).

Basically, the government is encouraging companies to invest in training their employees by offering programs like PLM. If you haven’t been using your levy for training, you might lose some of it to support these programs in the future. To avoid the deduction, be sure to use your levy for training before July 1st, 2024!