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- Who should register with PSMB?
Section 13(1) of the PSMB Act 2001 stipulates that every employer who is covered under the Act is required to register with PSMB within such time and manner as may be prescribed.
Any employer who is convicted for not registering with PSMB may be fined up to an amount not exceeding RM10,000 or face imprisonment up to a year, or both (Section 13 (2)).
According to the First Schedule of PSMB Act, 2001, definitions of industries covered are as follows:
|Class of Employer
|Employers with fifty or more employees
||Manufacturing, that is, the making or processing of an article by labour or machine or both, including the transformation of parts or components into another article of a different nature or character or character by way of altering, blending, ornamenting, finishing or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal, including the building of a ship or the assembly of parts of a ship.
||Required to register
|Employers with ten or more but less than fifty employees and with a paid-up capital of Ringgit Malaysia Two Million Five Hundred Thousand (RM2,500,000) and above
||Required to register
|Employers with ten or more but less than fifty employees and with a paid-up capital of less than Ringgit Malaysia Two Million Five Hundred Thousand (RM2,500,000)
||May opt to be registered
|Employers with ten or more employees
- Air transport
- Tour operating business
- Freight forwarding
- Postal or courier
- Computer services
- Higher education
- Direct selling
- Port services
- Engineering support & maintenance services
- Research & development
- Warehousing services
- Security services
- Private hospital services
- Hypermarket, supermarket and departmental store services
|Required to register
|Employers with fifty or more employees
||Required to register
- What is Human Resources Development (HRD) levy?
Section 14(1) of PSMB Act, 2001 stipulates that there shall be paid by every employer to whom the PSMB Act, 2001 applies, a HRD levy in respect of each of his employees at the rate of one per centum (1%) of the monthly wages of the employee.
Section 15(2) of PSMB Act, 2001 stipulates that there shall be paid by employer a HRD levy in respect of each of his employees at the rate of 0.5 per centum of the monthly wages of the employee (applicable to employer who opts to be registered).
An employer who is liable to pay the HRD levy shall pay those levies for the first and subsequent months' wages commencing from the date the employer becomes liable as stated under the Regulation 7 of the Pembangunan Sumber Manusia Berhad (Registration of Employers and Payment of Levy) Regulations 2001. The payment of the HRD levy is the responsibility of employers. Employers are not permitted to deduct the wages of employees under any circumstances for the payment of the levy.
- When to make payment for HRD levy?
HRD levy is to be made no later than the 15th date of the month in which the payment falls due, as stated under Regulation 8(1) of the Pembangunan Sumber Manusia Berhad (Registration of Employers and Payment of Levy) Regulations, 2001.
Failure of payment application before the stipulated time will result in;
- Fined not exceeding RM20,000.00 (Ringgit Malaysia Twenty Thousand) or to imprisonment for a term not exceeding two (2) years or both (on conviction)
- Yearly interest of 10 per cent in respect of each day of default or delay in payment
Any payment for interests accrued must be made by using the ESLIP. The quantum of interest to be paid will be determined by the HRDF.
- How to make payment for HRD levy?
All payments / arrears / interests of levy must be made through HRDF collection agents i.e; Public Bank Berhad (PBB) and RHB Bank Berhad.
Payments made are through ESLIP that can be downloaded and printed out from the ETRIS. Each ESLIP is allowed for one (1) cheque transaction only. However, employers who wish to pay arrears for multiple months are allowed to use a single ESLIP with one (1) accumulated payment cheque. Click HERE to download the user guide
A copy of the processed ESLIP (machine-printed or duly acknowledged by an authorised bank officer and date-stamped) will be returned to the employers and should be kept as prima facie evidence of the levy/arrears/interest payment. The copy of the ESLIP may vary based on the opted bank.
- PBB Bank : The copy will be in the form of bank deposit slip
- RHB Bank : The copy will be in photocopied ESLIP
The acceptable modes of payments are as follows;
- Local cheques
- Banker's order
- Cashier's cheques
- Money order
- Postal order
The processed payment will be updated in three (3) working days after the payments made. Employers are advised to check the levy payment status via the Levy Statement in the ETRIS.
Shall the payment yet to be reflected in the Levy Statement, kindly inform HRDF by providing a copy of the ESLIP for our checking purposes.
- Who is eligible to apply for training grant?
Employers registered and/or incorporated in Malaysia who have registered with PSMB and pay the HRD levy immediately upon registration are eligible to apply for training grants (financial assistance) to defray all or a major portion of the "allowable costs" of training attended by their employees. Training must be in the area of direct benefit to their business operations. Financial assistance is, therefore, not given to individuals who enrol and finance their own training programmes, whether partially or fully, and subsequently request for reimbursement from their employers. Neither is financial assistance given to employers who bear the cost of training after the successful completion of training by their employees.
To be eligible for training grants under the HRDF, trainees must be employees who are MALAYSIAN CITIZENS.
- What are the training schemes available in PSMB?
Employers are encouraged to utilise their levy payments via the following training schemes:
The SBL (Skim Bantuan Latihan) Scheme
The SBL scheme is the main funding scheme of PSMB. Prior approvals must be obtained from PSMB's Secretariat. Employers are allowed to identify their own training needs and to implement their training programmes to retrain and upgrade their employees' skills in line with their operational and business requirements. Under this scheme, employers are allowed to conduct training either on-the-job, off the job or a combination of both. Employers may also conduct training by engaging internal, external or overseas trainers. Effective 1 January 2011, trainers or training providers are required to register under Category C before they are allowed to conduct training under the SBL Scheme.
The SBL-KHAS Scheme
The SBL-Khas scheme is mainly to assist employers who are facing cash flow problems to continue with their retraining and skills upgrading of their workforce by using existing levy balances. Under this scheme, employers need not pay training fees to training provider. PSMB will directly debit from the levy accounts of employers to pay the training fees incurred to training providers with the authorisation of the employers concerned. Training programmes that are eligible to be offered under this scheme are public and in-house programmes conducted by training providers who are registered with PSMB. Training grant applications submitted by employers for programmes that are not registered or conducted by training providers not registered under this scheme will be rejected.
The PROLUS (Program Latihan Yang Diluluskan) Scheme
The Scheme requires training providers to register with PSMB. Upon registration, they may submit their training programmes, which are relevant to employers' training needs for the award of the ATP (Approved Training Programmes) status. Employers can select any training programme with ATP status, send their employees for training without prior approval from PSMB and claim for reimbursements upon the completion of training, subject to the terms and conditions imposed by PSMB. Amongst the training programmes/courses that can publicly being offered are Management/Administrative Skills, Craft/Technical Skills, Computer-related Skills and Productivity-related Skills.
The PERLA (Perjanjian Latihan Dengan Penyedia Latihan) Scheme
This scheme is basically a Training Agreement Scheme with selected training providers registered with PSMB. The objective of the scheme is to lessen the financial burden of employers, particularly the smaller employers. Under the scheme, employers sending their employees for retraining/skills upgrading with these training providers need not pay the full amount of fees charged. As an example, if the fee charged for a particular programme is RM1,000.00 and the rate of financial assistance under the HRDF is 85%, employers only need to pay an upfront of RM150.00 upon registration. The balance of RM850.00 will be claimed by the training provider concerned from PSMB. Where the rate of financial assistance is 100%, employers need not pay any upfront cost at all. With no or a small upfront cost, it is hoped that more employees will be sent for retraining and skills upgrading.
The PLT (Pelan Latihan Tahunan) Scheme
The PLT Scheme is the annual training plan scheme where employers are encouraged to put up Annual Training Plans. Under this scheme, employers must undertake systematic training needs analysis to ensure that training programmes are conducted on a needs basis and in line with their business plans and level of technology adaptations. The training plan must cover at least 10% of the company's total workforce with at least 15% of them from the lower level employees, having SPM qualifications and below. Employers without the necessary expertise to do so, can seek assistance from PSMB under the:
- Juruplan Scheme (Consultancy Scheme for Training Needs Analysis). Employers can apply for consultancy services from training consultants registered with PSMB. The consultants will assist employers to identify training needs, systematically formulate training programmes and prepare annual training plans. Employers must obtain prior approvals from PSMB in respect of the TNA proposals put up by the consultants. This scheme is a one-off exercise and employers are expected to carry-out their own TNA in subsequent years.
Purchase of Training Equipment and Setting up of Training Room Scheme
This scheme enables employers to obtain financial assistance at the rate of 100% to purchase basic training equipment and setting up of training rooms. The maximum amount that can be considered is not more than 20% of previous year's total levy payments. Prior approvals of PSMB must be obtained under this scheme. This scheme encourages employers to conduct more in-house training programmes, apart from enhancing the training culture amongst them.
Training aids approved under the scheme are as follows:
- Television set;
- VCR (Video Cassette Recorder);
- VCD (Video Compact Disc) player or DVD (Digital Video Disc) player;
- Overhead projector;
- LCD, direct and multimedia projector;
- Screen and white board;
- Training video tape;
- CD (Compact Disc) training video;
- Chairs and tables for training room only;
- Flip chart stand; and
- Mannequin (for first aid and CPR training)
For the setting up of the training room scheme, financial assistance granted does not include the construction of buildings, training centres or the purchase or renting of training rooms.
Under the Employers Circular No. 3/2009, the purchase of computer notebook(s) has been approved as an allowable item under the Purchase of Training Equipment and Setting Up of Training Room Scheme with the terms and conditions as stated below: -
- Employers must have training room(s) and full-time internal trainer(s) or training personnel;
- Computer notebooks must be used by internal trainer(s) or training personnel;
- There must be LCD projector(s) on company premises;
- Computer notebooks are not allowed to be given for use by other personnel for non-training functions;
- Computer notebooks when not being used must be placed in the training room(s) or Human Resources Department. Computer notebooks are allowed to be taken out of the company premises if there are training activities being carried out by the company;
- The purchase of computer notebooks is allowed once in every two years; and
- Employers who have lost their notebooks purchased under the HRDF are not allowed to apply again for replacement.
Computer-Based Training (CBT) Scheme
Employers who wish to purchase or develop computer-based training software including CD-ROM for the retraining and skills upgrading of their employees are eligible for financial assistance. For the purchase of software, a prior approval from PSMB is not required. However, prior approvals must be obtained if employers engaged consultants to develop specific training software. The rate of financial assistance will be based on the type of skills involved.
Information Technology and Computer-Aided Training Scheme (Purchase of Personal Computer)
To encourage training in Information Technology by employers, financial assistance will be provided to employers to set up computer training units within their premises to avoid difficulties in releasing their workers to attend training outside their premises. Under the scheme, employers can purchase several units of personal computers. Employers are eligible to receive financial assistance up to a maximum amount of RM25,000.00 once in every three (3) years.
For employers to receive this financial assistance, they must seek prior approval before making the purchases. The purchase of computers is solely for training and not to be used for office administration. The purchase of personal computers includes multi-media kits such as CD-ROM drives, speakers and sound cards, Notebooks and laptops are not eligible for financial assistance under this scheme.
The objective of this scheme is to increase the supply of skilled workers in industries identified by PSMB and employers. Apprentices are selected from PMR and SPM school leavers. Existing employees with no formal training can also be sponsored by employers, but subject to a ratio of one (1) existing employee to one (1) school leaver. Training conducted will involve a combination of theoretical training at the premises of training providers with an emphasis on practical training and structured on-the-job training at the premises of sponsoring employers. The curriculum for the apprenticeship scheme has been developed on a modular basis.
After the completion of training for each module at the premises of the training providers (for a period of three (3) months), apprentices would have to undergo another three (3) months on-the-job training at the premises of sponsoring employers. This is to reinforce the theoretical concepts learnt in the classrooms. The duration of training ranges from six (6) months to eighteen (18) months, depending on the type of skills and the needs of employers.
Tuition fees incurred will be fully paid by PSMB whilst employers will be responsible for paying the apprentices' monthly allowances of between RM300.00 to RM500.00. Sponsoring employers are also responsible to purchase insurance coverage for their apprentices for the duration of training. Sponsoring employers are eligible to obtain financial assistance at the rate of 100% of the "allowable costs", namely, apprentices' monthly allowances, insurance coverage and consumable training materials, if applicable. Upon successful completion of training, apprentices will be awarded the Malaysian Skills Certificates Level 1 and 2 by the National Vocational Training Council. For those who complete the full modules required under any of the scheme, they would be awarded the Apprentice Certificates, jointly issued by PSMB and the National Vocational Training Council.
Joint Training Scheme
This scheme enables several employers, particularly those from the SMEs, to jointly appoint a training provider to conduct training for their employees. One of the employers will act as the 'organiser' who will determine the type of programme required, engages a suitable training provider and determines the venue for training. The 'organiser' will also be responsible for determining the cost per employee to enable participating employers to claim the "allowable costs" incurred upon the completion of training. The 'organiser' is eligible to claim the "allowable costs" at the rate of 100%, whilst participating employers can only claim at the normal rates of financial assistance approved by PSMB.
- Can an employer claim for conference fees?
Employers are allowed to claim all "allowable costs" incurred in attending conferences and seminars under the HRDF subject to the following conditions:
- Open to all organisers;
- Topics for the conference/seminar to be attended by participants must be related to participants' job positions and company operations;
- Conference/seminar fees will be reimbursed up to a maximum of RM500 per day;
- The duration of the conference/seminar must be at least one day (7 hours) but not more than three days;
- Daily allowances for food, accommodation and internal transportation for the duration of the conference/seminar will be reimbursable according to existing guidelines; and
- Economy rates of traveling by air for participants will be reimbursable (if applicable).
- Open to all overseas organisers;
- Topics for the conference/seminar to be attended by participants must be related to participants' job positions and company business;
- Conference/seminar fees will be according to the amount as quoted by organisers;
- Daily allowances for food, accommodation and internal transportation for the duration of the conference/seminar will be reimbursable according to existing guidelines;
- Economy rates of traveling by air for participants will be reimbursable (if applicable); and
- Rate of financial assistance is at 50% of the allowable costs
The total financial assistance to be granted for conferences and seminars for any one-year period will be subjected to a maximum of 20% of total levy paid in the previous year. This is to ensure that substantial fund will be available for retraining and skills upgrading.
||Number of Employees
||150 employees or less
||50 employees or less
SME employers are required to plan and structure the training. Employers should prepare a structured programme outline with the OJT details on title, objective/learning outcome, target group, duration, task/content/skills and knowledge to be covered and instructional/delivery method.
The in-house OJT should be delivered either by company employees who possess the skills, or the trainee's own supervisor. The OJT can be conducted in a series of sessions, which should be at least one (1) hour in duration per session. Under this scheme, OJT can be allowed with trainer to trainee ratio of 1:1 up to a maximum of 1:4. For training involving five (5) trainees or more, application for financial assistance should be under the SBL Scheme for internal trainer allowance.
Reimbursement of financial assistance will be based on RM5.00 per trainee per hour (RM/trainee/hour). The minimum total duration of the OJT should be seven (7) hours and the maximum total duration should not be more than 300 hours.
Employers do not need to apply for pre-approvals for training grant and can submit claim applications using [Download] to the Finance Division of PSMB with a supporting document on the OJT Attendance and Evaluation Log. Employers can submit claim applications immediately after the date of the last session of the OJT. PSMB reserved the right to reject claim applications that are incomplete.
If SME employers have applied for financial assistance under other schemes or other Government programmes for the OJT, application for the same OJT under this scheme will not be allowed.
Kindly refer to Employers Circular No. 15/2008 [Download] for further details.
- Can employers who are in arrears of levy and unpaid interest apply for training grants?
Employers are allowed to continue receiving financial assistance and other benefit from the Human Resources Development Fund (HRDF) even though they have arrears of levy and unpaid interest as stated under Section 20(6A) in the Pembangunan Sumber Manusia Berhad Act, 2001.
The amount of arrears of levy and/or unpaid interest will be offset with the amount of training grant claims that is approved for payment.
Under the procedure, not only the employers' training grant claims are reimbursed but their arrears of levy and/or unpaid interest will also be gradually paid-off or reduced. The total amount of financial assistance eligible to be received by employers is still, however, subject to the balance in their levy accounts. In the event the amount of levy in employers' accounts is insufficient, the amount of training grants disbursed will be equivalent to the balance in employers' accounts (partial payment). The remaining training grants will be reimbursed when employers have accumulated sufficient levy in their accounts. If the balance of levy in employers' accounts is less than the amount of training grant claims approved for payment, no arrears of levy and unpaid interest will be offset and the claim will be rejected.
If employers with arrears of levy and unpaid interest fail to submit any form of written application upon the submission of their training grant claims, the claims will be rejected.
For further information, please call our Customer Service at 03 - 2096 4600 or the officers below for assistance:
- Syed Shahrul Hafeez bin Syed Halim (03 - 2096 4900)
- What is the e-Disbursement system?
e-Disbursement system is the system where the amount of training grant approved for payment would be credited directly into employers'/training providers' bank accounts. Before employers and training providers can receive training grants through the e-disbursement system, they are required to submit two forms i.e. PSMB/e-disbursement/1/08 and PSMB/e-disbursement/2/08.
The e-Disbursement system is only meant for current account holders and banks that are under the Malaysian Electronic Payment System (MEPS). A fee of 50 sen per transaction will be charged for Public Bank account holders, whilst for other banks, the fee is RM2.00 per transaction amounting to less than RM100,000 and RM5.00 per transaction amounting to RM100,000 or more. These fees will be deducted from the approved training grants by MEPS. The fees are fixed by Public Bank and MEPS and not by PSMB. Currently, banks that are under MEPS are shown as follows:
- Affin Bank
- Affin Islamic Bank
- Alliance Bank
- Bank Islam
- Bank Muamalat
- Bank Simpanan Nasional
- CIMB Bank
- EON Bank
- EON Capital Islamic Bank
- Hong Leong Bank
- HSBC Bank
- OCBC Bank
- Public Bank
- RHB Bank
- Standard Chartered Bank
- United Overseas Bank
For further information, please call our Customer Service hotline at 03 - 2096 4600 or the officer below for assistance:
- Haliza binti Hassan (03 - 2096 4827)
- Can employers apply for financial assistance for payment related to practical training conducted at their company?
Employers are allowed to receive financial assistance to pay monthly allowances and other "allowable costs" to trainees attending the practical training at their premises under the Industrial Training Scheme.
The minimum duration of the industrial training programme should be at least three (3) months and the maximum duration claimable from the HRDF will be eight (8) months. Any expenses for a duration exceeding 8 months will have to be borne by employers. Employers are required to submit their applications using form PSMB/ITS/1/08 [Download] Training under this programme conducted at the employers' premises must be on a full time basis. Attendance of trainees must be at least 75% of the total duration of the training programme in order for employers to be eligible to submit trainee daily allowance claims under the HRDF.
"Allowable costs" that will be claimable by employers are as follows:
- Monthly allowances for trainees up to a maximum of RM500 per trainee;
- Personal protective equipment (one set only);
- Course fees for employers who send trainees for skills enhancement training programmes (if any); and
- Insurance coverage (if any)
Financial assistance to be granted to each employer under this scheme for any one year will be subjected to a maximum of 20% of total levy balance at the time of application. Any additional application under this scheme for the year will be processed based on the balance of the 20% of the levy balance as recorded when processing the first application. This is to ensure that adequate fund will be available for retraining and skills upgrading of employees.
Employers can submit their claims to the Finance Division of PSMB using [Download] upon completion of training.
Please refer to Employers Circular No. 5/2008 [Download] for further details.
- Can employers apply for training grants for development programmes?
Employers registered with PSMB are allowed to apply for training grants for fees and "allowable costs" when Malaysian employees are sent for development courses such as Diploma, Degree, Masters and Ph.D levels. Programmes offered by the colleges and universities from the government, or private sector and also programmes offered by technical and vocational training institutions, especially those with the Malaysian Skills Certificate accreditation from the Department of Skills Development (Jabatan Pembangunan Kemahiran) under the Ministry of Human Resources, are eligible to obtain financial assistance from the HRDF.
All employers registered with PSMB can apply for financial assistance to reimburse for the course fees including registration and examination fees incurred for sending their workers to attend development programmes. Courses to be attended by trainees must be related to their jobs and relevant to the business of their employers. Employers when seeking financial assistance from the HRDF are required to submit their applications under the SBL Scheme using form PSMB/PGL/1/07 [Download] prior to the commencement of programme.
"Allowable costs" that will be claimable from the HRDF for the duration of the programmes are as follows: -
- Economy rates of traveling by air (one return ticket for the entire duration of the course) for trainees attending courses overseas will be reimbursed. The cost of airfare covers airport tax, administrative fees and fuel surcharge;
- An allowance for thesis which is inclusive of dissertation (once during the entire duration of the course) with the following rates if the trainee is required to prepare the thesis:
- RM600 for Masters programme; and
- RM1,000 for Ph. D programme.
Course fees must be borne entirely by employers. Employers are not allowed to request their employees to pay for any part of the course fee if they are able to obtain financial assistance from the HRDF. Fees paid by employees are not claimable from the HRDF.
The rates of financial assistance for fees to be reimbursed are as follows:
- At the rate of 100% for courses offered locally;
- At the rate of 50% for overseas courses; and
- At the rate of 100% for overseas courses for applications from Institutions of Private Higher Education.
If a trainee withdraws from the approved programme, the employer must inform PSMB so that the approved financial assistance can be cancelled and be used again for other training or development programmes.
Please refer to [Download] for further details.
- How do employers obtain a password for the eTRiS - Electronic Transformed Information System?
Employers can obtain a password for the eTRiS - Electronic Transformed Information System through several ways as follows:
- Fax your request using your company letterhead to 03-2096 4999 or 03-20964945; or
- Send e-mail to email@example.com or firstname.lastname@example.org using company's official e-mail together with the company letterhead; or
Note: Username and password will be sent by email and regular post.
- \What is the SME Training Partners Schemes?
The objective of the SME Training Partners Scheme (SMETAP) is to enhance the momentum of retraining and skills upgrading of the workforce among SME employers. PSMB and approved training providers will partner to provide relevant training to SMEs employers through this scheme. Training fees will be paid directly to training providers who are approved partners and the amount would be debited to employers' levy accounts in accordance with procedures prescribed. This would benefit employers, as no upfront payment needs to be incurred.
Training programmes offered is in-line with the training needs to be identified by industry training committees, core competencies identified by industry brainstorming groups and consultant studies. All proposals submitted by training partners will be considered and approved by a committee headed by the Chief Executive/Deputy Chief Executive of PSMB.
Training Partners who wish to participate in the SMETAP programme need to fulfil the following criteria:-
- Registered as Class A Training Provider with PSMB, including Employers' or Trade Associations currently registered as Training Providers;
- Have at least three (3) years of experience in delivering corporate training;
- Have at least ten (10) training programmes that were conducted at least twice a year for the last two (2) years;
- All trainers have attended the Train-the-Trainer Course; and
- Have subscribed to the PSMB HRD Training Portal.