HRDF levy utilisation guide for Malaysian employers in 2026
A complete operator's guide for HR and Finance teams on how the HRDF levy is calculated, how to read your e-TRiS Levy Statement, and how to convert ringgit contributions into capability. Schedule 1 versus Schedule 2 rates, monthly cadence, scheme selection, and the planning rhythm that keeps levy from sitting idle.
What the HRDF levy is, and why it exists
The HRDF levy is a mandatory monthly contribution paid by Malaysian employers in covered industries under the Pembangunan Sumber Manusia Berhad Act 2001, administered by HRD Corp. The intent is simple. A small slice of payroll is pooled into a training fund owned by the employer, and is then drawn back down to pay for approved upskilling. It is not a tax. It is a ring-fenced training account.
For employers, the levy creates a binary choice. Either you actively use it on training that builds real capability, or it sits in your account and your team upskills slower than the levy would otherwise allow. In 2026, with AI changing how every white collar function works, leaving levy unused is the most expensive form of inaction in the L&D playbook.
Schedule 1 versus Schedule 2 employers
HRD Corp segments covered employers into two schedules based on headcount of Malaysian employees in qualifying industries.
| Schedule | Malaysian employee count | Levy rate | Notes |
|---|---|---|---|
| Schedule 1 | 10 or more | 1% of monthly wages per Malaysian employee | Mandatory registration and contribution |
| Schedule 2 | 5 to 9 | 0.5% of monthly wages per Malaysian employee | Mandatory registration and contribution |
The covered industries list is published by HRD Corp and has been progressively expanded. If your organisation is in manufacturing, services, mining, quarrying, agriculture or another listed sector and meets the headcount threshold, registration is not optional. The base wage definition includes basic salary plus fixed allowances, with statutory exclusions per HRD Corp guidance.
Tip for finance. When forecasting the levy line, use a 12 month rolling view of payroll. Hiring cycles cause headcount swings that can push you between schedules if you sit near the threshold. Confirm category with HRD Corp if you are close to 10 Malaysian employees.
The monthly levy rhythm
The HRDF levy operates on a clear monthly cadence. Locking the team into the rhythm prevents missed payments and lost balance visibility.
- Calculate the levyFor each Malaysian employee, apply 1% or 0.5% of monthly wages depending on schedule.
- Submit and pay by the 15th of the following monthPayments are made through the e-TRiS portal. Late payment triggers interest at the prevailing HRD Corp rate.
- Update your Levy StatementVerify the contribution reflects on your account. New contributions take roughly a month to be available for claims.
- Run a monthly utilisation checkHave HR review the running balance against the training plan. Idle balance over six months is a planning signal, not a feature.
Where the levy can be spent
The levy is not spent in a single channel. HRD Corp runs several schemes, each tuned to a category of training. Choosing the right scheme matters because rules and ceilings differ.
| Scheme | What it funds | Best for |
|---|---|---|
| SBL-Khas | Pre-approved training, registered programme, registered provider | Most corporate L&D, including AI and Agile cohorts |
| RPEL | Recognition of Prior Experiential Learning, competency mapping | Skilled workers seeking formal recognition |
| ALAT | Industrial training equipment purchase | Manufacturing skills development |
| OJT-DRB | Structured on-the-job training | Skilled trade upskilling |
| Trade Test | Certification fees for skilled trades | Certified workforce credentialling |
For AI, Agile, Leadership and ICAgile training, SBL-Khas is the primary lane. Other schemes complement specific industry programmes but rarely replace SBL-Khas for white collar capability building.
How to plan a year of levy utilisation
Most employers underuse the levy because they treat training spend as a request stream, not a plan. A simple yearly utilisation framework changes that.
- Forecast 12 months of levy contributions based on the current payroll baseline.
- Run a Training Needs Analysis across critical functions to identify capability gaps.
- Sequence training by quarter so the levy clears in line with delivery.
- Reserve 15 to 20% of forecast levy as contingency for late add-ons and headcount shifts.
- Review monthly. If utilisation drops below plan for two consecutive months, escalate.
Plain math. A Schedule 1 employer with RM 8 million of qualifying annual wages contributes roughly RM 80,000 a year. That funds dozens of public seats or several private cohorts at typical SBL-Khas ceilings. Plan it, do not leak it.
Common mistakes employers make with levy
How this applies to Agile Visa training
Agile Visa's founder Prashant Shinde is HRD Corp Accredited Trainer, full programme accreditation in progress. Once programme registration completes, eligible employers will be able to claim training under SBL-Khas, subject to HRD Corp approval and a sufficient levy balance. Until then, courses are quoted at full fee in MYR.
Even in advance of accreditation, Malaysian L&D leads can use our Training Needs Analysis to build the 2026 levy utilisation plan. That work is independent of scheme registration and gives finance and HR a defensible view of what to spend, on whom, and when.
Build a defensible 2026 levy plan
Book a discovery call with Prashant. We will help you map capability gaps to schemes, sequence cohorts across the year, and avoid the most common levy leakage patterns.
HRDF levy FAQ
What is the HRDF levy in Malaysia?
The HRDF levy is a mandatory monthly contribution under the Pembangunan Sumber Manusia Berhad Act 2001. Schedule 1 employers pay 1% of monthly wages, Schedule 2 employers pay 0.5%, calculated on each Malaysian employee.
Who is a Schedule 1 versus Schedule 2 employer?
Schedule 1 employers are in covered industries with 10 or more Malaysian employees and pay 1% of monthly wages. Schedule 2 employers are in covered industries with 5 to 9 Malaysian employees and pay 0.5%. The list of covered industries is published by HRD Corp.
What happens to unused levy?
Unused levy remains in the employer's account and continues to be available for future claims, subject to HRD Corp policy. Employers should plan utilisation actively rather than let large balances accumulate unused.
Can the levy be used for AI and Agile training?
Yes. AI and Agile training are eligible expenditure under schemes such as SBL-Khas, provided the programme is registered with HRD Corp under a valid programme code and the application is filed before training begins.
How do I check my levy balance?
Log in to the e-TRiS portal at etris.hrdcorp.gov.my and open the Levy Statement to see current balance, contributions, and claims to date.
Does Agile Visa training draw from the HRDF levy?
Agile Visa's founder Prashant Shinde is HRD Corp Accredited Trainer, full programme accreditation in progress. Once programme registration completes, eligible employers will be able to claim training under SBL-Khas, subject to HRD Corp approval and a sufficient levy balance. Until then, courses are quoted at full fee in MYR.
Last reviewed: 6 June 2026 by Prashant Shinde, Founder, ICAgile accredited and HRD Corp Accredited Trainer.