KUALA LUMPUR, 6 June 2018:
The Ministry of Human Resources has given employers who are liable to pay the Human Resource Development (HRD) levy until the end of this month to contribute – or face possible legal action, said its Minister M. Kulasegaran.
It is the mandatory levy payment imposed by the government on specified groups of employers – for the purpose of employee training and skills upgrading.
“Until April this year, 45,750 employers are liable to register with the Human Resources Development Fund (HRDF) but only about 50% have done so, meaning there are approximately 23,072 employers who have yet to register.”
Speaking after chairing his first meeting with the board of directors of Human Resource Development Bhd (PSMB) here yesterday, he said errant employers can be fined up to RM10,000 or a year in jail or both, if convicted.
However, Kulasegaran said dragging employers to court was the last option as the ministry still wants to give these employers a chance.
Under the HRDF Act 2001 (also known as PSMB Act 2001), all employers with at least 10 local workers – in the manufacturing, mining and quarrying sectors as well as 38 service sub-sectors including hospitality, shipping, air transport and telecommunications – must register with HRDF.
They are subject to a levy amounting to one per cent of their employees’ monthly wages.
– Bernama