Key Takeaways
- HRDF (Human Resources Development Fund) helps Malaysian employers claim back costs for approved training programmes to enhance workforce skills.
- Only HRD Corp-registered employers can apply, and they must follow specific procedures through the eTRiS portal.
- Claimable expenses include course fees, allowances, transport, and licensed training materials.
- HRDF supports both physical and virtual training formats, making it adaptable to modern learning needs.
- Employers must register training in advance, use HRDF-approved training providers, and submit all claims within six months of course completion.
- Avoid common mistakes such as missing documentation or delayed submissions, which can lead to rejected claims.
- Thriving Talents, an HRD Corp-registered provider, offers claimable programmes including leadership development, corporate training workshops, and employee skills enhancement.
Introduction
The Human Resource Development Fund (HRDF) was established in 1993 in Malaysia under the Pembangunan Sumber Manusia Berhad (PSMB) Act 2001.
Managed by the HRD Corp under the Ministry of Human Resources, its primary goal is to promote workforce skills enhancement and boost business competitiveness. Thus, it ensures Malaysia’s workforce remains adaptable in an evolving global economy.
Despite its strategic value, many stakeholders are not fully aware of its mandate, guidelines, and procedures. For example, the scope of HRDF claimable training and courses available.
This blog seeks to bridge this information gap by exploring the underlying procedures for claiming HRD Corp training costs. It also aims to illustrate the vital role of HRD Corp-registered training providers within the HRDF ecosystem. So, let’s get started, shall we?
What Is HRDF (Human Resources Development Fund)?
The Human Resources Development Fund (HRDF) is a Malaysian statutory body that operates under the Ministry of Human Resources Malaysia.
Established under the Pembangunan Sumber Manusia Berhad Act 2001, it’s designed to support the developmental training of employees and apprentices across disparate industries.
Principally, the initiative seeks to advance the Malaysian workforce’s global competitiveness and adaptability in an evolving economic landscape. It’s working towards achieving this mandate by providing financial assistance to employers for approved training programs.
Companies that contribute to HRDF via its mandatory levy system can claim back the costs of training their employees. For example, expenses related to course fees, allowances, and other approved costs.
What is HRDF claimable?
The term “HRDF claimable” describes the training costs and associated expenses that employers registered under HRD Corp can submit for reimbursement after conducting authorised training programs for their employees.
These claimable expenses could include (but are not limited to):
- Course fees
- Employee benefits like daily and lunch allowances
- Lodging and transportation
- Consumable training materials
- Licensed training materials.
In practice, this claim-back system incentivises employers to continuously upgrade their workforce’s skills, without bearing the full financial burden. It thereby closes skills gaps and increases productivity across diverse Malaysian sectors.
So, how does the HRDF claim work? What does the HRDF refundable process look like? Is HRDF claimable for every sector? Worry not, the subsequent sections will address these burning questions.
What is the maximum HRDF claim per day?
The type of training and course category determines the maximum HRDF claim per day. For example, employers are eligible to claim up to RM8,000 per group per day for in-house training under HRD Corp Focus Area courses.
Furthermore, claims for remote online training are limited to RM2,000 per participant per day for public online Focus Area courses. Additionally, HRDF allows claims for allowances such as meal allowances (up to RM50 per participant per day).
For full details and the latest updates on claim limits and allowable costs, refer to the official HRD Corp Employer Circular No. 3/2024.
Who is eligible for the HRDF claim?
The HRDF claim initiative is a valuable resource for human capital growth. However, not all employers are eligible to make HRDF claims. Only employers registered with the HRD Corp under the Pembangunan Sumber Manusia Berhad (PSMB) Act 2001 are eligible.
These employers must meet the specific criteria defined under the Act, whilst also belonging to the industries PSMB covers. For example, employers eligible for registration should have 10 or more Malaysian employees. They should also contribute a monthly levy of 1% of the total monthly wages of their employees.
However, employers with 5 to 9 Malaysian employees have the option to register voluntarily, with a reduced levy rate of 0.5%.
Note: Entities like federal statutory bodies, NGOs involved in welfare activities, local councils, and state government bodies are exempt from HRDF registration.
HRDF guidelines and procedural steps
The HRDF claim process is underpinned by several key procedural steps to ensure smooth reimbursement of training expenses. Methodically following these steps ensures compliance with the fund regulations whilst allowing employers to maximise their HRDF benefits.
For a detailed step-by-step procedural flow of the HRDF claim process, employers can refer to the official HRD Corp process guide.
Step 1: Training selection
The first step of training selection starts with employers identifying HRDF claimable courses. These courses are listed on the official HRD Corp program page.
During this stage, it’s also imperative to choose an HRDF-registered training provider. For example, Thriving Talents offers HRDF claimable courses like team building.
Step 2: Registration
Employers who wish to participate in the HRDF scheme and register their selected training courses must register as contributing employers via HRD Corp’s eTRiS platform. This step is mission-critical to streamlining the HRDF course registration and subsequent claim submissions.
Step 3: Attend the training
As part of HRDF regulations, employees must attend the full training session to qualify for HRDF claims. To substantiate employee attendance, employers should:
- Document attendance accurately
- Collect feedback forms
- Retain all training materials as proof of participation.
Detailed guidelines on filling out attendance forms can be found at Guidelines for Form T3 Attendance and PSMB SBL Khas T3-01.
Step 4: Claim submission
Following HRDF submission guidelines, employers submit their claims via the eTRiS portal after completing the training.
To make claim verification seamless, this entails uploading the necessary supporting documentation, such as invoices, attendance logs, and trainer profiles.
Step 5: Reimbursement
After the claim is validated, the reimbursement is handled and credited to the employer’s account. Depending on the intricacy of the claim and the quality of the documents, the entire HRDF reimbursement procedures usually take several weeks.
To accelerate the process, adhering to submission timelines and maintaining high documentation standards is key.
Key Documents Required for HRDF Claim
To avert unnecessary delays and ensure smooth reimbursement of training expenses, here are the key documents required for an HRDF claim:
- HRDF grant application form: This is the official form submitted to apply for HRDF funding prior to conducting the training.
- Trainer’s profile and course outline: This is detailed information about the trainer’s qualifications and the training program’s content and goals.
- Company’s SBL/SBL-Khas approval letter: This approval letter from HRD Corp confirms the company’s entitlement to claim under the SBL or SBL-Khas scheme.
- Proof of training completion: These documents include attendance sheets, feedback forms, and certificates that verify the training and employee participation.
How to withdraw a claim HRDF after training?
After training, claims may be withdrawn from HRDF if participants are determined to be ineligible. A claim withdrawal may also be initiated if training cancellations occur or submission errors arise.
However, the eTRIS portal must be used to complete the withdrawal procedure. Furthermore, an appropriate explanation and remarks must be included to justify the withdrawal.
Once submitted, the withdrawal request is usually reviewed and approved within five working days. For detailed instructions, kindly refer to this official HRD Claim Withdrawal Guide.
Common HRDF application process mistakes to avoid
Like any other regulatory process, employers sometimes make some HRDF application process mistakes that delay disbursement. Here are some common mistakes to avoid:
- Missing pre-approval for training, which often leads to claim rejection.
- Late claim submission beyond the 6-month deadline after training completion.
- Choosing non-HRDF-approved training providers. This often renders claims invalid.
- Missing supporting documents such as invoices, attendance records, or trainer profiles.
How Thriving Talents Supports HRDF-Claimable Training
Thriving Talents is an HRD Corp-registered training provider in Malaysia. Recognised for delivering high-quality, HRDF-claimable training programmes, we foster sustainable workforce development aligned with Malaysia’s evolving economic needs.
Our dynamic expertise cuts across different sectors to deliver:
- Leadership development programmes.
- Corporate training workshops.
- Workforce development and employee skills enhancement.
- Emotional intelligence training and communication skills development.
By partnering with Thriving Talents, companies can ensure their training programmes meet HRDF requirements. Thereby, maximising their chances of successful claims and full compliance with HRD Corp regulations.
FAQ
Can an individual claim HRDF?
Individuals aren’t eligible to claim directly from HRDF. Claims must be submitted by the employer on behalf of their employees. However, the employer must be registered and contribute to the fund under the PSMB Act 2001.
What is the claim period for HRDF?
Employers must submit their HRDF claims within 6 months of training completion. Late submissions beyond this period are typically not accepted. As such, timely claim submission is essential.
What other eligible courses for HRDF can I claim?
Besides team building, employers can claim HRDF for various training programmes. For example, such as leadership development, customer service, and technical skills enhancement.
How do I know if a training provider is HRDF-approved?
You can check the official HRD Corp Directory. Alternatively, you can ask the training provider directly for certification to verify if they are HRDF-approved. This guarantees that the provided courses qualify for HRDF reimbursements.
Can I claim for virtual training under HRDF?
Yes, HRD Corp allows claims for both physical and online training formats as part of their regulations. Thriving Talents fortunately caters to both learning dimensions. However, its HRDF claimable online training courses focus primarily on ensuring flexibility for employers and employees.
Conclusion
The HRDF claimable training and courses initiative seeks to empower the Malaysian workforce to continually upskill and compete globally. In fact, the initiative is a key pillar of Malaysia’s national economic strategy in terms of advancing productivity and innovation.
Employers who contribute to HRDF can claim back approved training expenses like course fees, allowances, and related costs. This reimbursement mechanism is a key incentive that will strengthen Malaysia’s human capital. However, compliance is key to smooth and timely claim processing.
Failure to adhere to HRDF requirements, such as using unregistered training providers, can result in claim rejection. As such, it’s imperative for companies to carefully identify HRDF-accredited training partners to avoid costly errors.
Thriving Talents is an HRD Corp-registered training provider with a proven record of delivering high-quality, approved training programmes that meet HRDF standards. It helps in safeguarding your HRDF claims and maximising the value of your training investments.
Contact us to take the next step in enhancing your team’s skills with HRDF claimable training.
