Employers exempted from paying levy to HR development fund

Human Resources Minister M Saravanan says the exemption is to ease the burden of employers and their workers during the Covid-19 crisis.

PETALING JAYA: The Human Resources Development Fund (HRDF) will grant a levy exemption to more than 30,000 of its registered employers for six months beginning on April 15.

Under the Human Resources Development Act 2001, registered employers under 63 sub-sectors in the three key economic sectors of manufacturing, services and mining and quarrying have to contribute 1% of their total monthly payroll to HRDF as a levy.

They must have 10 or more employees.

In a statement today, Human Resources Minister M Saravanan said the employers will automatically be exempted from paying the levy and no application for exemption is required.

He said the initiative is part of the government’s efforts to ease the burden of the employers and their workers during the Covid-19 crisis and to keep the domestic labour market resilient.

Announcing the RM250 billion economic stimulus package last Friday, Prime Minister Muhyiddin Yassin said the HRDF levy exemption would provide a cash flow relief of about RM440 million to employers.