Employer General

Unutilised Levy Mechanism?

1. What happens to the unutilised/unused levy from the employers?

Section 25 of the PSMB Act 2001 stipulates, if an employer does not make any claims against the Fund within such period as determined by the Board from the date of its registration with the Corporation or date of last financial assistance or other benefits granted by the Corporation, the employer is not entitled to receive any financial assistance or other benefits that has not claimed earlier.

From its first inception, the unutilised levy mechanism was set for two (2) years and further revised to five (5) years. In 2019, HRDF decided to reduce the current unutilised levy mechanism period in order to encourage employers to utilise their levy within a shorter time frame from five (5) to two (2) years. This change of time frame will take effect from January 2020.

However, a levy balance threshold of RM10,000 will remain for employers upon their ineligibility. Employers with less balance will not be affected.

The reason behind the revision of Unutilised Levy Mechanism is a step towards qualifying and quantifying training and development programmes which is not only improving the core competencies of employees of HRDF registered employers but also help towards enhancing their (the employees) overall business sense.

2. When does the levy becomes ineligible?

The levy will become ineligible when the balance has not been utilised within the period of 24 months.

This means no claims were made within two (2) years continuously.

3. How does HRDF communicate with its stakeholders on the implementation of Unutilised Levy Mechanism?

Reminders are being sent out in stages via email and letter on a monthly basis to the related employers whom are being categorized as inactive in levy utilization.

Information on Unutilised Levy is being communicated across all engagement sessions, for instance during the HRDF Workshops, HRDF Seminars, Jom Guna Levi, Onboarding Sessions and et cetera.

4. Why do I keep on receiving a reminder emails on levy utilisation although I am not an inactive employer?

Reminder emails are also being sent out to the employers who are categorised under low levy utilisation if the rate fails to reach an identified threshold.

5. How do I obtain more information on this matter?

Employers may visit www.hrdf.com.my or alternatively contact HRDF’s support team via support@hrdf.com.my or toll-free Call Centre at 1800-88-4800 for further enquiries.

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