Important! Avoid 15% Deduction to your HRD Corp Levy Fund!
IMPORTANT notice, mark it to remember it.
Your company’s HRD Corp Levy Fund may face a deduction of 15% after June 30, 2024.
Why?
As part of Budget 2024, the Prime Minister of Malaysia, Yang Amat Berhormat Dato’ Seri Anwar Ibrahim, initiated the Program Latihan Madani (PLM) with the objective of empowering the country’s micro-SMEs and communities in need through training and development opportunities. This initiative will be utilising 15% from your company’s remaining unused levy fund for the year 2023.
Who will be affected?
If the following two criteria are met, a 15% deduction will be levied upon your company’s HRD Corp levy balance.
1. Levy balance of RM 50,000 and above for the year 2023.
2. Levy utilisation rate of less than 50% from the employer’s contribution from 1 January 2023 to 31 December 2023.
Breaking down how the 15% PLM deduction is calculated
The 15% deduction is calculated using the following formula:
(Levy Collection in 2023 – Levy Utilisation in 2023) x 15%
To explain further, let’s look at some scenarios extracted from the HRD Corp website.
How to avoid PLM Deduction?
To steer clear of PLM deductions, it’s crucial for your company to ensure that either over 50% of its HRD Corp levy fund is utilised by June 30, 2024, or its levy balance is RM50,000 and below by the same date.
It is also important to note that the deduction is based on actual usage only, not on planned or booked training sessions.
You can find relevant further details on the HRD Corp official portal at https://supportcentre.hrdcorp.gov.my/portal/en/kb/articles/faq-program-latihan-madani-employer-s-circular-no-2-2024#
If anything, Vision Building is here to guide you.
Again, a gentle reminder that the PLM 15% deduction will take effect on July 1, 2024.
If your company meets the two criteria for deduction, we strongly recommend you and your team to take immediate action to avoid this deduction and the subsequent unnecessary costs.
Need more information or assistance regarding HRD Corp, training programs, or team building? We’re always just one text or call away on WhatsApp, ready to provide you with the guidance you need most.
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