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:

  1. Monthly allowances for trainees up to a maximum of RM500 per trainee;
  2. Personal protective equipment (one set only);
  3. Course fees for employers who send trainees for skills enhancement training programmes (if any); and
  4. 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 upon completion of training.

Please refer to Employers Circular No. 5/2008 [Download] for further details.

Do you have any other questions or need more Info? Call us at 1800-88-4800 or email at or click HERE for our branches contacts details.