How to Claim HRDF for Employers in Malaysia

Training employees helps businesses grow, but it can be expensive.

The Human Resources Development Fund (HRDF) helps companies in Malaysia cover training costs through claims.

If you’re an employer wondering how to claim HRDF, this guide will explain everything in simple steps, from understanding HRDF to submitting a claim and getting reimbursed.

What is HRDF?

HRDF, or the Human Resources Development Fund, is a program under the Pembangunan Sumber Manusia Berhad (PSMB) Act 2001.

It was created to help employers in Malaysia train and develop their workers.

Companies that contribute to HRDF can claim back training costs.

So, employers can find it easier to upskill employees without paying the full amount.

Why Should Employers Claim HRDF?

Training employees improves their skills and helps businesses grow.

However, training can be costly. HRDF helps reduce the financial burden by providing funds for training programs.

By claiming HRDF:

Companies can save money on training.
Employees learn new skills and perform better at work.
Businesses stay competitive by keeping up with industry trends.

Who Can Claim HRDF?

Not all businesses can claim HRDF. To qualify, companies must be registered with HRDF and contribute to the levy.

Which Employers Must Register for HRDF?

Companies with 10 or more Malaysian employees must register and contribute 1% of each employee’s monthly wages to HRDF.
Companies with 5 to 9 Malaysian employees can choose to register and contribute 0.5% of monthly wages.

Who Cannot Claim HRDF?

Government agencies
NGOs that focus on social welfare
Companies with fewer than five employees

If your company is registered and contributing to HRDF, you can claim training costs.

Types of HRDF Claims

Employers can claim HRDF for different types of training costs. Here are the main categories:

1. HRDF Training Grant Claims

This is the most common claim. Employers can apply to cover the cost of employee training programs.

2. HRDF Special Schemes & Incentives Claims

HRDF also provides extra funds for government initiatives or special training programs for certain industries.

3. HRDF Allowance & Subsidy Claims

There are also extra training-related costs that employers can claim, such as:

Daily allowances for employees attending training.
Meal allowances for training days.
Travel and accommodation costs if training is outside the workplace.

Step-by-Step Guide to Claim HRDF

1. Get Pre-Approval for Training

Before making a claim, employers must get approval from HRDF for the training program.

First, check if your company is registered and contributing to HRDF.
Choose a training program that qualifies for HRDF claims.
Submit a training grant application through the HRDF eTRiS portal before the training begins.

If the company does not apply for pre-approval, HRDF may reject the claim.

2. Conduct the Training

Once the training grant is approved, the company can carry out the training.

The training must be provided by an HRDF-registered training provider.

Keep the attendance records and other training documents.

Don’t forget to save invoices and receipts, as they are needed for the claim.

3. Submit the HRDF Claim

After the training is completed, the employer must submit the claim through the HRDF eTRiS portal.

Employers need to prepare and submit:

Invoice or quotation from the training provider.
Attendance records of employees who attended training.
Payment receipts as proof of payment.

All documents should be uploaded to the HRDF eTRiS portal. The claim must be submitted within six months after training ends.

Once submitted, HRDF will review and process the claim.

4. Claim Approval & Reimbursement

After submission, HRDF will check and verify the claim.

It can take a few weeks to a few months for approval.

If approved, HRDF will reimburse the training cost to the company’s bank account.

Be aware that HRDF claims can be rejected. Some claims may be denied due to:

Incomplete documents or missing information.
The training provider is not HRDF-approved.
The company did not apply for pre-approval before the training started.

To avoid rejection, double-check all documents before submitting.

HRDF Claimable Training Programs

Not all training programs qualify for HRDF claims.

Employers must choose the training that is approved by HRDF.

HRDF offers two main training schemes to help employers fund employee training:

1. HRDF SBL-KHAS Scheme

HRDF pays the training provider directly, so businesses don’t need to pay upfront.

Employers only need to handle employee attendance and claim submission.

It can reduce the cash flow burden for businesses.

However, it is only applicable to HRDF-registered training providers.

2. HRDF SBL Scheme

Employers initially pay for training and later claim the costs from HRDF.

This allows businesses to select their preferred training providers.

Full claim eligibility is subject to HRDF approval and is suitable for companies capable of paying upfront.

In terms of training types, HRDF provides various of training, including:

In-house training at the company’s office or training center.
Public training programs by HRDF-approved trainers.
Online training and e-learning courses.
Coaching and mentoring programs.
Development programs, such as diplomas and professional certifications.

Employers should check HRDF’s list of approved courses and providers before signing up employees for training.

FAQ

How long does it take to process an HRDF claim?

Processing time varies, but it usually takes a few weeks to a few months.

Can SMEs claim HRDF?

Yes, SMEs with at least five employees can register and claim HRDF. Companies with 10 or more employees must register and contribute.

Can employees claim HRDF directly?

No, only employers can submit HRDF claims. Employees must go through their company’s HR department.

Is online training eligible for HRDF claims?

Yes, HRDF covers online training, but the program must be approved by HRDF.

How to check the HRDF claim status?

Employers can check the status by logging into the HRDF eTRiS portal or contacting HRDF support.

HRDF offers Malaysian employers an effective way to save on training while enhancing their workforce.

If your company contributes to HRDF, start utilizing your training funds today!

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