Maximize Your HRD Corp Levy and Avoid Deductions with Program Latihan MADANI
Make the Most of Your HRD Corp Levy Before It’s Too Late!
Did you know that employers only have until 28 February 2025 to fully utilize their HRD Corp levy and avoid deductions under the Program Latihan MADANI? This initiative, announced in HRD Corp Employer’s Circular No. 5/2024, forms part of Malaysia’s Budget 2025, aimed at fostering an equitable workforce by empowering underserved communities and micro-SMEs while enabling businesses to upskill their talent pool.
Here’s everything you need to know about how this program works and why it’s crucial to act now.
What Is Program Latihan MADANI?
The Program Latihan MADANI was introduced to encourage employers to invest in skills development and training for their workforce while reallocating unused levy funds to initiatives that benefit smaller businesses and underserved communities. The ultimate goal is to foster a highly skilled, inclusive workforce across Malaysia.
Who is Affected by the Deduction for Programme Latihan Madani?
Employers who meet two of the following criteria will face deductions. Here’s a breakdown of the critical details:
1. Employers with a levy balance of RM50,000 and above for the year 2024
2. Employers with a levy utilisation rate of less than 50% from the employer's contribution from 1st January to 31st December 2024
What Happens if You Don’t Use Your Levy?
15% Deduction for Unused Levy Balances
If your business has RM50,000 or more in unused levy balances by the end of 2024 and a levy utilization rate of less than 50% (from 1 January to 31 December 2024), 15% of the remaining balance will be allocated to the Program Latihan MADANI.
Grace Period to Avoid Deductions
The deduction will only take effect on 1 March 2025, giving employers a grace period from 1 January to 28 February 2025 to increase their levy utilization to over 50% and avoid the deduction entirely.
Why Should You Take Action?
Utilizing your HRD Corp levy effectively is a win-win situation. Not only can you avoid the 15% deduction, but you can also invest in high-quality training programs to upskill your workforce, boost productivity, and remain competitive in your industry. The levy isn’t just an obligation—it’s an opportunity to develop talent and ensure the future growth of your business.
What You Can Do Today
To make the most of your HRD Corp levy:
Review Your Current Levy Utilization Rate:
Assess how much of your levy you’ve used so far in 2024.
Plan Training Programs for Q1 2025:
Focus on skills that align with your business needs and industry trends, such as HR2eazy’s HR & Admin for Beginners Training.
Collaborate with HRD Corp-Approved Training Providers:
Work with providers that offer certified, high-quality programs to ensure your training efforts are effective.
Upgrade your HRMS or Other Platforms/Systems:
Search and identify software providers that can offer you trainings that come together with a software for a whole year, just like HR2eazy’s Streamlining HR & Payroll Processes programme.
Don’t let unused levy funds go to waste! Act now to avoid deductions, contribute to the growth of Malaysia’s workforce, and create a stronger future for your organization.
Got any questions? Feel free to write in to our HR Consultant and Senior Manager, Suresh Kumar at [email protected]. Alternatively, learn how HR2eazy’s HR Consulting Services or HR Training Services can help navigate your department and company to avoid any deductions to your HRDC levy.
