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.