Employer


About Employer Registration

An employer is interpreted in PSMB Act, 2001 as “any person who has entered into a contract of service to employ any other person as an employee, and includes an agent, manager or factor of such first-mentioned person.”
These are the forms needed in dealing with registration/deregistration process, however we would like to encourage the employers to fill the form online. Please download any forms related to your matter:

Form 1 (Liable Employer)

To be filled by company who has more than 10 Malaysian employees and the nature of the business of the company is covered under PSMB Act 2001.

Click Here

Form 1A (Potential Liable Employer)

To be filled by company who is not sure either the nature of the business is covered under PSMB Act 2001

Click Here

Guideline

For employer to register

Download

First Schedule

For employer to register

Download

Employer Booklet

For employer to register

Download

Tips :
  • Please follow each steps involved in every process (New Registration, Deregistration, Cessation, Acquisition & Levy transfer)
  • Please download the extra information given to understand the role, function and benefits of registering with PSMB.
  • Please check your email frequently.

Conditions for New Employer Registration

1

ONE

Employers with 10 or more Malaysian employees are COMPULSORY to register with PSMB.

The monthly levy is charged at the rate of 1% of the monthly wages of employees.
2

TWO

Employers with 5 to 9 Malaysian employees are given the OPTION to register with PSMB and if you choose to register, the monthly levy is charged at the rate of 0.5% of the monthly wages of employees
3

THREE

All companies’ activities should be covered under PSMB Act 2001. Tip: See 63- subsector covered under PSMB Act 2001




New Employer Registration Process

1

ONE

Please fill in Form 1 or Form 1A and attach all the supporting documents ( scan and attach the documents together in the form)

Form 1 (Liable Employer) - To be filled by company who has more than 10 Malaysian employees and the nature of the business of the company is covered under PSMB Act 2001.

Form 1A (Potential Liable Employer) - To be filled by company who is not sure either the nature of the business is covered under PSMB Act 2001
2

TWO

The application will be reviewed by the officers within 2 days and a confirmation email will be sent to the company.



FAQ for New Employer Registration


Does my company need to register with Human Resource Development Fund?
The registration of employers is stipulated in the Pembangunan Sumber Manusia Berhad Act, 2001 (PSMB Act, 2001).

Generally, if your company falls under the Manufacturing, Services, or Mining & Quarrying sector (based on PSMB Act 2001) and your company employs a minimum of ten (10) Malaysian employees, it is compulsory for your company to register with Human Resource Development Fund (HRDF).

If your company falls under the above mentioned sectors but only employs five (5) to nine (9) Malaysian, you are given an option to register with PSMB.
How do I know if my industry is covered under the PSMB Act 2001?
According to the First Schedule of PSMB Act 2001, definitions of industries covered are as follows:

1. Services Sector

Sub-Sector / IndustryEligibility CriteriaRate Of Levy Payment
- Hotel
- Air Transport
- Travel Agency (Inbound)
- Telecommunication
- Freight Forwarding
- Shipping
- Postal Or Courier
- Advertising
- Computer Services
- Energy
- Training
- Higher Education
- Commercial Land
- Transport & Railway Transport Services
- Direct Selling
- Port Services
- Engineering Support And Maintenance Services
- Research And Development
- Warehousing Services
- Security Services
- Private Hospital Services
- Gas, Steam And Air-Conditioning Supply
- Water Treatment And Supply
- Sewerage
- Waste
- Management And Material Recovery Services
- Production Of
- Motion Picture, Video And Television Programme, Sound Recording And Music Publishing
- Information Service
- Building And Landscape Services
- Event Management Services
- Early Childhood Education
- Health Support Service
- Franchise
- Sale And Repair Of Motor Vehicles
- Private Broadcasting Services
- Driving School
- Veterinary Services
- Hypermarket, Supermarket And Departmental Store Services
- Food And Beverage Services
≥ 10 Malaysian Employees (Mandatory To Register)

5 - 9 Malaysian Employees (Given Option To Register)
1%

0.5%

2. Manufacturing Sector

Sub-Sector / IndustryEligibility CriteriaRate Of Levy Payment
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 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.
≥ 10 Malaysian Employees (Mandatory To Register)


5 - 9 Malaysian Employees (Given Option To Register)
1%


0.5%

3. Mining & Quarrying Sector

Sub-Sector / IndustryEligibility CriteriaRate Of Levy Payment
Extraction of Crude Petroleum Oils and Gas
Mining and Quarrying
≥ 10 Malaysian Employees (Mandatory To Register)


5 - 9 Malaysian Employees (Given Option To Register)
1%


0.5%
What do I do after my registration application is approved?
Companies who have registered with PSMB are responsible to pay a monthly Human Resource Development (HRD) levy of 1% from the company’s monthly wages plus fixed allowances to HRDF.

As you pay the levy, you are eligible to receive assistance through the levy/grant system to retrain and improve or upgrade your employees’ skills. Prior to sending your employees for training programmes, you have to apply for training grant approval. Upon completion of training programmes, you can claim reimbursement for the expenses incurred. The amount allowed for reimbursement is subject to the approved amount or the actual expenses incurred, whichever lower. Reimbursement can be made directly to the employer or the training provider, depending on the type of schemes selected.
Why must my company pay the HRD levy? What do I get in return?
PSMB, through the PSMB Act 2001 imposes the collection of HRD levy through legal authority on liable employers in Malaysia. In return, the employers will receive financial assistance from the HRD levy paid, for training and development of their local employees.

By actively utilising the levy contributions, the employers are able to:
  • Improve the quality, productivity and competitiveness of their employees. Investing in up-skilling your employees is important to survive in the current and future competition of the local and international market. If the companies aspire to export their products and services, they must prepare their workforce to meet the regional and global market’s requirements. The employers are able to choose different training schemes provided by PSMB in order to suit their business and HR strategies.
  • Through Training Grant applications, employers are able to send their employees to training programmes that are required by the industry, meet industry-specific requirement and standards, for internal career development, succession planning or performance reward.
  • With the HRD levy, the registered employers can establish a systematic and structured training plan for their workers. A training plan is a requirement for ISO-certified organisations.
  • Gain access to continuous assistance from PSMB to help and support the HR Department and the employers themselves. Services include:
  • - Advisory and consultancy services from qualified consultants on all aspect of human resource management. The services are either on complimentary basis or charged a minimal cost to PSMB registered employers.
  • - Advisory services from PSMB officers on levy utilisation, registration or de-registration issues.
  • - Dissemination of news, circulars, events or any updates via HRDF e-mail, portal, Facebook, Twitter, Instagram, LinkedIn and/or letters.
  • Gain access to special funds from the Government to PSMB for specific purposes from time to time. For example, to improve the productivity and competitiveness of Small Medium Enterprises (SMEs), the Government may provide training incentives to the employers; to produce more skilled young workers after they leave school and the Government may offer the Apprenticeship Training Fund Scheme under the minimum wage.
  • Opportunity to be nominated for the prestigious Human Resource Development Award as national recognition to employers who actively pay and utilise the HRD levy.
  • Levy payment is considered as allowable expenses under the Income Tax Act, 1967 . Hence, HRD levy is value-for-money for the registered employers.
Now that I know my company is liable under PSMB Act, 2001, to pay the HRD levy every month, how do I register?
You can choose to register online or through a manual submission (form and supporting documents).

If you choose to register online, please follow these steps:
  • Please fill in the online form together with the supporting document.
  • After fill in the online form, please click on ‘Submit’ button.
  • Click the button below to start register as an Employer.

If you choose to register by sending a hardcopy of the documents, please follow these steps:
Please fill in the related forms and attach together the supporting documents such as Form 9, Form 24, Form 49 and latest EPF statements and send them to:
Registration Unit - Customer Acquisition Department
Pembangunan Sumber Manusia Berhad,
Wisma HRDF,
Jalan Beringin,
Damansara Heights,
50490, Kuala Lumpur
Are there any documents I need to submit along with the registration form?
Here are the documents you need to submit either via online registration or manual submission.
Jenis Pemunyaan Syarikat / Types of OwnershipDokumen Sokongan / Supporting Document
Pemilik Tunggal / Sole Proprietorship- Lesen Perniagaan / Business License
- Penyata KWSP / EPF Statement
- Profil Syarikat / Penyata Tahunan / Penyata Kewangan terkini atau apa-apa dokumen yang menerangkan aktiviti syarikat / Latest Company Profile / Annual Return / Financial Statement or any documents that state the activity of the company
Perkongsian / Partnership - Borang ROB / ROB Form
- Penyata KWSP / EPF Statement
- Profil Syarikat / Penyata Tahunan / Penyata / Kewangan terkini atau apa-apa dokumen yang menerangkan aktiviti syarikat / Latest Company Profile / Annual Return /Financial Statement or any documents that state the activity of the company
Syarikat Sendirian Berhad / Private Limited Company- Seksyen 14 / Section 14 atau / or SuperForm
- Borang 9 / Form 9
- Borang 13 / Form 13
- Borang 24 / Form 24
- Seksyen 17 / Section 17
- Seksyen 28 / Section 28
- Seksyen 78 / Section 78
- Seksyen 58 / Section 58
- Borang 49 / Form 49
- Penyata KWSP / EPF Statement
- Borang B / Form B (bagi pendaftaran IPTS sahaja / *for IPTS registration only)
- Profil Syarikat / Penyata Tahunan / Penyata Kewangan terkini atau apa-apa dokumen yang menerangkan aktiviti syarikat / Latest Company Profile / Annual Return / Financial Statement or any documents that state the activity of the company
Syarikat Awam Berhad / Public Limited Company- Seksyen 14 / Section 14 atau / or SuperForm
- Borang 8 / Form 8
- Seksyen 17 / Section 17
- Seksyen 58 / Section 58
- Borang 49 / Form 49
- Penyata KWSP / EPF Statement
- Profil Syarikat / Penyata Tahunan / Penyata Kewangan terkini atau apa-apa dokumen yang menerangkan aktiviti syarikat / Latest Company Profile / Annual Return / Financial Statement or any documents that state the activity of the company
Syarikat Asing / Foreign Company- Seksyen 14 / Section 14 atau / or SuperForm
- Borang 83 / Form 83
- Borang 80A / Form 80A
- Borang 79 / Form 79
- Seksyen 17 / Section 17
- Seksyen 562 (1) / Section 562 (1)
- Penyata KWSP / EPF Statement
- Profil Syarikat / Penyata Tahunan/Penyata Kewangan terkini atau apa-apa dokumen yang menerangkan aktiviti syarikat / Latest Company Profile / Annual Return / Financial Statement or any documents that state the activity of the company
Is the Human Resources Development (HRD) levy deducted from an employees’ employee’s wages?
No. Employers are not permitted to deduct the wages of employees under any circumstances for the payment of the levy.
How long does it take to process my registration application?
An employer registration process takes 2 working days if all required documents are correct and complete.
How shall I know whether my application is successful?
Successfully registered employers will receive an e-mail notification regarding registration approval together with:
  • On-Boarding Programme and Starter Kit. It is important for newly registered employers to be aware pf of levy and how to pay levy, how to use the eTRis and general schemes offered by HRDF. .
  • User ID and password. The purpose of user ID and password is to enable the authorised personnel to log into the HRDF system called eTRis ("Electronic Transformed Information System")
*The hardcopy approval letter will also be posted to the employer's address.
Is the company director considered as an employee?
If the company director is paid a salary, he/she is regarded as an employee of the company, whereas a director who only accepts director fees is not considered an employee.
What is Form 1 (Registration of Employer) and Form 1A (Employer Information)?
Form 1 - To be filled by company who has more than 10 Malaysian employees and the nature of the business of the company is covered under PSMB Act 2001.

Form 1A - To be filled by company who is not sure either the nature of the business is covered under PSMB Act 2001
How to calculate the levy?
Levy= (Total wages or basic salaries + fixed allowances) x 1%
[Basic salary is the unpaid salary of any payment]
*Only applicable for company with 10 or more Malaysian employees

Levy= (Total wages or basic salaries + fixed allowances) x 0.5%
[Basic salary is the unpaid salary of any payment]
*Only applicable for company with 5-9 Malaysian employees
Is there any processing fees charged by PSMB when my company registers?
No fee is charged when processing the application for registration.
What is an employee?
Employee means any citizen of Malaysia who is employed for wages under a contract of service with an employer, but does not include any domestic servant.
Is it compulsory for an employer to register?
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.
If my company do not want to register, what is the consequence?
Any employer who is convicted of 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)).
If my company just registers with HRDF but does not pay the levy, what is the consequence?
Failure of payment before the stipulated time will result in;
  • Fine not exceeding RM20, 000.00 (Ringgit Malaysia Twenty Thousand) or 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.

Tips:
  • Download New Employer Registration Guideline
  • Refer the New Employer Registration Checklist


Employer Registration Checklist:

Employer Cessation, Deregistration or Acquisition Process

1

ONE

Conditions for Employer to de-register
2

TWO

Checklist for Deregistration, Cessation and Acquisition Process
3

THREE

Fill in Form 4 for Cessation of 'Being An Employer' OR Form 4A for 'Deregistration of Employer' OR Form 4 and Form 5 for 'Company acquisition' using (eTRiS) or send the application to PSMB Headquarters or respective branches
4

FOUR

The application will be reviewed by the officer and a confirmation email will be sent to the company

A company can apply for Cessation with PSMB if:

  • The company has ceased its operation, wound up, dormant, acquired by or merged with other company.
  • No levy and interest arrears.
  • No training conducted after the submission of Form 4.


A company can apply for Deregistration with PSMB if:

  • The company has less than 10 Malaysian workers for three consecutive months.*
  • No levy and interest arrears.
  • No training conducted after the submission of Form 4A.


FAQ for Cessation and Deregistration of an Employer

Can an employer deregister with HRDF?
Section 16 (1) PSMB Act 2001, no employer who is registered with the Corporation shall be deregistered.

Section 16 (2) PSMB Act 2001, regardless of subsection (1), if the number of employees of an employer to whom this Act applies, decreases to below the minimum number for three consecutive months, the employer may submit an application to the Corporation for deregistration together with any relevant documents to prove such decrease.
If my company has ceased its operation, wound up, dormant, acquired by or merged with another company, what should I do?
Section 13 (3) PSMB Act 2001, where any person cease to be an employer under this Act, he shall within thirty days of such cessation notify the Corporation in such manner as may be prescribed.
What is the period to apply for cessation or deregistration of a company?
Any cessation or deregistration application should be done by the employer within 30 days after the company stops operating.
Can a company halt its operation and deregister with PSMB?
No, deregistration only can be done if the company has changed its nature of business and the new business is not covered under the PSMB Act 2001 or the company has less than 10 Malaysian employees for 3 consecutive months.
When a company changes its origin business, and the new business is not covered under PSM Act 2001, can the company deregister with PSMB?
Yes, a company can deregister with PSMB if the new nature of business for the company is not covered under the PSMB Act 2001.
What will happen to the balance levy after a company deregisters or secedes from PSMB?
The balance levy will be transferred to the PSMB General Reserve.

Checklist for Cessation Process
(Form 4)

Submit the following documents to PSMB:
  • Form 4 (Employer Cessation )
  • Supporting documents
    (minimum one from the list below) :-
  • Company account cessation letter from EPF / SOCSO / other government agencies and/or
  • Board resolution and /or
  • Surat Pembatalan Pengilangan from MIDA or Borang Pemberitahuan Pemberhentian Pekerja 2004 (PK) submit to JTK
  • Confirm there are no levy and/or interest arrears.
  • Confirm there are no trainings conducted after submission of Form 4 to PSMB

Checklist for Deregistration Process
(Form 4A)

Submit the following documents to PSMB:
  • Form 4A (Employer Deregistration)
  • EPF statements for three months
  • Confirm there are no levy and/or interest arrears.
  • Confirm there are no trainings conducted after the submission of Form 4A to PSMB
Checklist for Acquisition
(Levy Transfer) of an Employer

a) Company closed operation / dormant
  • Form 4
  • Supporting documents
    (minimum one from the list below) :-
  • Company account cessation letter from EPF / SOCSO / other government agencies and/or
  • Board resolution and /or
  • Surat Pembatalan Pengilangan from MIDA or Borang Pemberitahuan Pemberhentian Pekerja 2004 (PK) submit to JTK
  • Last EPF Statement before acquisition / merger
  • Confirm there are no levy and/or interest arrears.
  • Confirm there are no trainings conducted after submission of Form 4 to PSMB


b) Acquired / Merged company
  • Form 5
  • Provide Director Resolution / Sale & Purchase Agreement
  • First EPF Statement after acquisition / merger
  • Confirm there are no levy and/or interest arrears.

  • Both Form 4 and Form 5 with the supporting document must be sent to PSMB together .

A company can apply for Acquisition (Levy Transfer) from PSMB if:

  • The company has ceased its operation and acquired by or merged with another company
  • No levy and interest arrears
  • No training conducted after the submission of Form 4 and Form 5


FAQ for Acquisition (Levy Transfer) of an Employer

Can an employer transfer levy to another employer?
Section 20 (4) PSMB Act 2001 stated where an employer has acquired the interests of another employer registered under subsection 13(1) or 15(1), the first-mentioned employer shall be substituted for that other employer and shall be eligible to receive or continue to receive any financial assistance or other benefit provided under this Act, as the case may be, in respect of the employees, apprentices and trainees of the employer whose interests have been acquired.
If my company has ceased its operation, wound up, dormant, acquired by or merged with another company, what should I do?
Section 13 (3) PSMB Act 2001, where any person cease to be an employer under this Act, he shall within thirty days of such cessation notify the Corporation in such manner as may be prescribed.
What is the period to apply for cessation or deregistration of a company?
Any cessation or deregistration application should be done by the employer within 30 days after the company stops operating.
Can a company halt its operation and deregister with PSMB?
No, deregistration only can be done if the company has changed its nature of business and the new business is not covered under the PSMB Act 2001 or the company has less than 10 Malaysian employees for 3 consecutive months.
When a company changes its origin business, and the new business is not covered under PSM Act 2001, can the company deregister with PSMB?
Yes, a company can deregister with PSMB if the new nature of business for the company is not covered under the PSMB Act 2001.
What will happen to the balance levy after a company deregisters or secedes from PSMB?
The balance levy will be transferred to the PSMB General Reserve.


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