HRDC Levy Calculator Malaysia
Calculate your estimated monthly and annual HRD Corp levy contribution instantly based on your organisation’s payroll and fixed allowances.
Whether you’re an HR professional, finance manager or business owner, our free HRD Levy Calculator helps you estimate your workforce development investment in less than 30 seconds.
Enter Details
Sum of basic salary + fixed allowances for all Malaysian employees.
10+ employees = Mandatory | 5–9 employees = Optional
Employee Summary
* This calculator provides estimates based on standard HRD Corp rates. Actual levy obligations may vary based on specific circumstances and official HRD Corp guidelines.
- Basic salary refers to the employee’s salary before any deductions.
- Fixed allowances refer to recurring monthly allowances paid consistently.
What Is HRD Levy?
The Human Resource Development (HRD) levy is a mandatory monthly contribution paid by eligible employers in Malaysia under the Human Resources Development Corporation (HRD Corp).
The levy is designed to help employers invest in workforce development, employee training and skills enhancement programmes.
Employers who contribute to HRD Corp may utilise their levy contributions to support approved training and development initiatives for their employees.
Who Needs To Pay HRD Levy?
Generally, employers with:
10 or more Malaysian employees
are required to register and contribute HRD levy under the Human Resources Development Act.
The levy contribution rate is:
1% of monthly wages
This contribution is calculated based on:
Basic salary
Fixed allowances
What Is Included In HRD Levy Calculation?
The following components are generally included when calculating HRD levy:
Included
- Basic Salary
- Fixed Housing Allowance
- Fixed Transportation Allowance
- Fixed Meal Allowance
- Fixed Position Allowance
- Fixed Telephone Allowance
- Fixed Entertainment Allowance
Not Included
- Overtime Payments (OT)
- Bonuses
- Sales Commissions
- Variable Incentives
- Mileage Claims
- Travel Claims
- Reimbursements
- One-Off Payments
Why Does HRD Levy Matter?
Many Malaysian organisations contribute thousands of ringgit every year towards workforce development funding through HRD levy contributions. Understanding your estimated contribution can help organisations plan annual training budgets more effectively, build structured employee development programmes, support leadership succession planning, improve workforce productivity, and equip employees with the skills needed to thrive in an evolving business environment.
Frequently Asked Questions
Is HRDC levy mandatory in Malaysia?
How much is the HRD levy rate?
The current levy contribution rate is:
1% of monthly wages consisting of basic salary and fixed allowances.
Does HRD levy include overtime and bonuses?
No.
Overtime payments, bonuses, commissions and other variable payments are generally not included in HRD levy calculations.
Can HRD levy be claimed back?
Are foreign employees included in HRD levy calculation?
The applicability of levy contributions may depend on the employee category and current HRD Corp guidelines. Employers should refer to HRD Corp or consult a registered training provider for clarification.
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