Maximizing the use of your HRDF fund is crucial for enhancing employee development while ensuring your company benefits from the available financial support. Below are strategies to ensure effective utilization of your HRDF fund, especially when a specific HRDF training programme may not be ideal for your business needs.
1. Skim Bantuan Latihan (SBL) Scheme: Tailored In-House and External HRDF Training
The Skim Bantuan Latihan (SBL) Scheme provides flexibility for employers under the HRDF training scheme. It allows companies to design custom training programs tailored to their specific operational needs. Employers can select both in-house and external HRDF courses, as long as the training meets the minimum duration of four hours. This scheme offers financial assistance, covering trainer fees, venue rental, consumables, and transportation, all part of the HRDF claimable costs.
2. Avoid HRDF Levy Deductions Through Strategic Fund Use
To avoid a 15% levy deduction in 2024, companies must ensure that at least 50% of their HRDF fund is utilized before June. Regularly reviewing your HRDF claim process and training activities can prevent this deduction. By planning training ahead and ensuring that it fits within HRDF claimable guidelines, companies can maximize the benefits without financial penalties.
3. Unutilized HRDF Levy Mechanism: Avoid Fund Forfeiture
The HRDF claim process involves using your HRDF fund within a two-year period, or the remaining funds may be forfeited. This is a significant risk for companies that do not actively engage in HRDF training. By submitting HRDF claims regularly through various programs, businesses can ensure they continue to benefit from their HRDF course allocations.
4. Customized Training Facilities & Equipment
Employers can also use the HRDF fund to enhance their in-house training capabilities. The HRDF claim allows businesses to purchase training aids and materials or even renovate their training facilities through the ALAT scheme. This is ideal for companies looking to establish long-term, in-house HRDF training setups.
5. Remote Coaching and Mentoring: A Flexible HRDF Course Option
For companies that cannot host in-house sessions, the HRDF claimable guidelines allow for remote coaching and mentoring. These online sessions must meet the four-hour minimum, making them a convenient option for businesses that require flexibility in their HRDF training. This ensures that even remote teams can benefit from HRDF-supported development.
6. Focus on Long-Term Development with HRDF Training
To fully benefit from HRDF courses, companies should implement long-term employee development plans. Instead of one-off training sessions, consider running multi-phase programs, supported by HRDF claimable funds. This approach helps enhance productivity and retention while maximizing the effectiveness of your HRDF fund.
About HRDF Fund
Using the HRDF fund wisely is essential for developing a competitive workforce. By leveraging schemes like Skim Bantuan Latihan (SBL), upgrading training facilities, or implementing long-term development plans, businesses can ensure their HRDF training aligns with operational goals. Avoid levy deductions and fund forfeiture by staying proactive with your HRDF claim process and continuously engaging with HRDF claimable programs. Effective utilization of the HRDF fund in 2024 will provide long-term benefits for both your employees and your company.
Related FAQs on Using HRDF Fund
Here are FAQs related to HRDF with relevant keywords:
1. How to use the HRDF fund?
To use your HRDF fund, employers must register with HRDF, assess their company’s training needs, and select HRDF claimable courses. You can utilize the fund for in-house or public training programs under schemes like Skim Bantuan Latihan (SBL), which allows for tailored programs as long as they meet the minimum training hour requirements. After conducting the training, employers can submit a HRDF claim via the online e-TRiS portal, ensuring all required documents, like invoices and training schedules, are submitted.
2. Is it compulsory to register for HRDF?
Yes, it is compulsory for employers in specific sectors with 10 or more local employees to register with HRDF and contribute a levy, which is 1% of their employees’ monthly wages. Companies with 5 to 9 employees can register voluntarily, contributing 0.5% of monthly wages.
3. How to utilise the HRDF levy?
The HRDF levy can be utilized by applying for financial assistance for HRDF training programs that focus on reskilling and upskilling employees. Employers can use their levy for both in-house and public training courses, as well as for equipment purchases or facility upgrades under the ALAT scheme. The HRDF claim process involves submitting training plans and expenses for approval through the e-TRiS portal.
4. Who is exempted from HRDF Malaysia?
Companies that fall outside the specific industries outlined by the HRDF Act or those with fewer than 5 employees are generally exempt from registering and contributing to HRDF. Additionally, companies in industries that were heavily impacted by events like the pandemic may also receive temporary exemptions.
5. How do I make a HRDF contribution?
To make a HRDF contribution, registered employers must pay a monthly levy, calculated as 1% of the monthly wages of their local employees, to HRDF. Payments must be made by the 15th of the following month through the e-TRiS portal.
6. Who is eligible for a HRDF claim?
Employers registered with HRDF are eligible to make a HRDF claim for any approved HRDF claimable training programs. These include in-house training, public courses, coaching, and mentoring programs, as long as they align with HRDF guidelines. Claims can be submitted after the training has been conducted, provided all necessary documentation is included.
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