Who must register with HRD Corp?

Employers with 10 or more Malaysian employees in a covered sector must register — it is compulsory under the PSMB Act 2001. Employers with 5 to 9 Malaysian employees may register optionally. HRD Corp makes the final eligibility decision, so if unsure, file Form 1 to get official confirmation.

How much is the HRD Corp levy?

For mandatory registrants (10+ employees) the levy is 1% of monthly wages — basic salary plus fixed allowances. For optional registrants (5 to 9 employees) it is 0.5%. For example, a RM100,000 monthly payroll incurs a RM1,000 monthly levy at 1%.

How do I register my company with HRD Corp?

Complete Form 1 online through the HRD Corp portal, providing your company and employee details. HRD Corp reviews the application (typically within 30 days) and emails a confirmation along with access to your e-TRiS account, after which the monthly levy begins.

What is the penalty for not registering with HRD Corp?

Failing to register when required is an offence under the PSMB Act 2001, punishable by a fine of up to RM10,000, imprisonment for up to one year, or both. It is best to register as soon as you meet the mandatory threshold.

What is the PSMB Act 2001?

The Pembangunan Sumber Manusia Berhad Act 2001 (Act 612) is the law that establishes HRD Corp and the human-resource development levy. It defines which employers must register, the levy they pay, and how the fund is used to develop the Malaysian workforce.

HRD Corp Employer Registration & Levy Guide (2026): Who Must Register and How

HRD Corp employer registration & levy: who must register, and how

Before you can claim a sen of training funding, your company has to be registered with HRD Corp and paying the levy. Here is exactly who is required to, how the levy is calculated, and how to register — grounded in the PSMB Act 2001.

This guide is general information for Malaysian employers, not official HRD Corp advice or legal advice. Processes, rates and forms are set by HRD Corp and can change — always verify against the official links at the end before you act.

Everything in the HRD Corp claim process starts here: registration. HRD Corp administers Malaysia’s training levy under the Pembangunan Sumber Manusia Berhad Act 2001 (PSMB Act, Act 612). If your company qualifies, registration and the levy are a legal obligation — but they are also what unlocks your training budget.

Who must register

Eligibility turns on your headcount of Malaysian employees and whether your industry sector is covered by the Act. HRD Corp makes the final call, but the tiers are:

Registration tiers under the PSMB Act 2001

The eligibility of an employer under the Act can only be decided by HRD Corp, not by the employer. If in doubt, file Form 1 and let them confirm.

How to register — step by step

Registration is done online and confirmed by HRD Corp:

HRD Corp employer registration flow

How the levy is calculated

The levy is a percentage of each employee’s monthly wages, defined as basic salary plus fixed allowances:

Formula: Levy = (Basic salary + fixed allowances) × rate • Mandatory rate: 1% (10+ Malaysian employees) • Optional rate: 0.5% (5–9 Malaysian employees) • Due: Monthly, via e-TRiS

Worked example. A company with 20 Malaysian employees and a total monthly wage bill of RM100,000 pays a levy of RM100,000 × 1% = RM1,000 per month, or about RM12,000 a year. That entire pool is available to fund employee training through HRD Corp’s schemes — money you lose the benefit of if you never claim.

Penalties for not registering

Registration is not optional for employers who meet the mandatory threshold. Failing to register is an offence under the PSMB Act, with penalties of up to RM10,000, imprisonment for up to twelve months, or both. Late or unpaid levy also attracts consequences, so register as soon as you cross the threshold.

What registration unlocks

Once you are registered and contributing, you can apply for training grants and claim course costs back from your levy. The next step is the grant application — done before any training starts — followed by claim submission afterwards. All AITraining2U courses are HRD Corp claimable.

Official HRD Corp resources

This guide summarises official material for convenience. Always confirm the current rules on HRD Corp’s own channels — they are the authority and details change: