Q1: Eligibility- Should your company register with HRDF?

Num of Employee

Obligation

10 or more Malaysian employees

Compulsory to register

5 - 9 Malaysian employees

Optional to register

 

 

Q2: How is the HRDF levy calculated?

 

Num of Employee

Imposed Rate

10 or more Malaysian employees

1% of monthly wages for each employee

5 - 9 Malaysian employees

0.5% of monthly wages for each employee

 

HRDF levy = Imposed rate * ( Basic Salary + Fixed Allowances)


**Fixed Allowances refer to allowances paid regularly and unchanged on a monthly basis.


To find out more details on which allowances to include in the calculation, please visit page 3 of the document file prepared by HRDF.


Example

Your company is contributing at a 1% imposed rate of the HRDF levy.

 

Employee

Malaysian

Gross Salary

(A)

Parking Allowance(Fixed)

(B)

Commission

(Non fixed)

(C)

Total Salary subject to Levy

(A + B)

HRDF Levy

A

✔️

1362.58

100

300

1462.58

1462.58 * 1%

=14.63

B

✔️

4152.14

-

470

4152.14

4152.14 * 1%

=41.52

C

3500.00

100

200

-

-

 

Note:

  • We DIDN'T add “Commission” as it is a non fixed allowance.

  • Employee C is a foreign worker so he is excluded from the HRDF levy.