HRD Corp Levy & Training Claims Explained
HRD Corp (Human Resource Development Corporation) runs a national training levy. Many employers pay into it every month — and then forget that the money is theirs to spend on developing their staff. The levy is not a tax that disappears; it is a pool you draw down to fund approved training. If you pay it and never claim, you're leaving training budget on the table.
How the levy works
Employers in covered sectors must register with HRD Corp once they hit the employee count that makes registration mandatory, and then pay a monthly levy calculated as a percentage of each employee's wages. (There's a mandatory tier for larger headcounts and an optional, lower-rate tier for smaller ones — confirm the current employee thresholds and percentages on the HRD Corp site.)
The levy you pay accumulates in your employer levy account. It isn't money lost — it's a balance you use to fund registered training for your team.
How you get the money back (claimable training)
What it can cover
Beyond classroom and online courses, HRD Corp schemes have supported things like certification, conferences, and structured on-the-job training — the eligible scope depends on the current scheme rules.
Why bother
Common mistakes
The levy sits alongside your other employer duties — see our guide on EPF, SOCSO and EIS. And once your team is trained up, you may be better positioned for other SME grants.
Looking for funding?
Browse verified Malaysian SME grants and check what you may qualify for.
Frequently asked questions
Who has to register and pay the HRD Corp levy?
Employers in covered sectors must register once they reach the employee count that makes registration mandatory, then pay a monthly levy based on a percentage of each employee's wages. There is a mandatory tier for larger headcounts and an optional lower-rate tier for smaller ones — confirm the current thresholds on the HRD Corp site.
How do I claim my HRD Corp training money back?
Register and keep your levy up to date, choose HRD Corp-approved training, apply for a grant in the portal before the training starts, run the training, and submit a claim with attendance and payment evidence. The cost is paid from or reimbursed against your levy balance, subject to scheme limits.
What is SBL-Khas?
SBL-Khas is a well-known HRD Corp scheme where HRD Corp can pay the training provider directly, so you do not have to fund the course upfront and then claim it back. You still need to apply and get approval before the training takes place.
What happens to unused HRD Corp levy?
Unused levy can effectively be wasted — it sits in your employer account but only delivers value if you actually plan and claim training. The most expensive mistake is paying the levy every month and never claiming, so treat it as a training budget you have already funded.
What training can I claim under HRD Corp?
Beyond classroom and online courses, HRD Corp schemes have supported certification, conferences and structured on-the-job training, as long as the trainer or course is registered and you get the grant approved first. The exact eligible scope depends on current scheme rules.
Source:HRD Corp
General information only — schemes, rules and requirements change. Always follow the official source(s) and confirm the latest details before acting.
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