HRDC Levy Forfeiture

According to Section 25 of the PSMB Act 2001

1. If an employer does not make any claims against the Fund within such period as may be determined by the Board from the date of its registration with the Corporation or from the date of the last financial assistance or other benefits granted by the Corporation, the employer shall lose his eligibility to receive any financial assistance or other benefits not claimed for the period.
2. The period of unutilised HRD levy is 2 years (with effect from 1st Jan 2020).

Your Levy be forfeited if No Claim being made within 2 years

How does forfeiture formula work?

If your company has not made any claim for 2 years – the balance of the levy at the start of the 2 years would be forfeited subject to a minimum amount of RM10,000. Contribution within 2 years would not be affected. You can refer to the example below:

	Levy Bal as at 31-Jan-2023	Approved claim within 2 yrs from 2023 to 2025	Levy contribution during the 2 years from 2023 to 2025	Forfeited Amount	Levy Balance at Feb 2025
Example 1	250,000	0	38,000	240,000	48,000
Example 2	116,000	6,000	10,000	0	120,000
Example 3	6,500	0	4,400	0	10,900

Looking for HRDC Claimable Training Programmes?

Contact Genesis Origo today for various training programmes that can help your company to boost your workforce soft and/or hard skills.

Back to HRDC Main Page